Coin Center Argues Software Code is Protected Free Speech to Shield Crypto Developers

Coin Center has released a report arguing that the act of writing and publishing cryptocurrency software code should be viewed as a form of free expression, akin to publishing a book or a recipe. The organization contends that the First Amendment offers strict constitutional protection for developers who maintain software, asserting that these individuals are inventors and speakers rather than fiduciaries or agents. The push comes amid growing anxiety within the developer community following several high-profile convictions. Specifically, the group points to the trial of Tornado Cash developer Roman Storm and the sentencing of Samourai Wallet co-founders, who were convicted of operating unlicensed money-transmitting businesses based on how their software was utilized. Executive Director Peter Van Valkenburgh and Research Director Lizandro Pieper argue that imposing licensing or pre-registration requirements on the act of coding constitutes an unconstitutional 'prior restraint' on speech. The report seeks to establish a clear line between protected speech and regulatable conduct, suggesting that a developer only crosses into regulated territory when they actively control user assets, execute transactions on behalf of users, or make discretionary decisions for them. To support this position, Coin Center cites the 1985 Supreme Court case Lowe v. SEC, which found that publishers who do not hold assets or take action on a client's behalf are protected by free speech and are not practicing a regulated profession. They argue that the unique nature of self-custody and peer-to-peer transactions removes the need for the traditional middlemen that regulators typically target. While not an immediate catalyst for price action, the resolution of these legal arguments will likely determine the future of decentralized finance (DeFi) and privacy-preserving technologies within the United States.