#200 - Money Transmission & Developer Liability

Can the U.S. government send a software developer to prison for writing and publishing code?

That's the question at the center of the Tornado Cash and Samourai Wallet prosecutions, and every crypto founder, builder and investor should understand the answer.

This deep-dive episode walks through the history of U.S. money transmission law, how the DOJ is applying it to non-custodial software developers, what the Roman Storm verdict actually means, and what new legislation could change in 2026.

Guests:

• Peter Van Valkenburgh — Executive Director, Coin Center
• Amanda Tuminelli — Chief Executive Officer, DeFi Education Fund
• Brian Klein — Partner at Cooley, lead defense attorney for Roman Storm
• Jake Chervinsky — Hyperliquid Policy Center (cameo)

This is the most comprehensive podcast I've ever done. Welcome to Law of Code, Season 2.

Timestamps:

0:00 Intro

3:18 What's at stake?

4:40 Which developers are at risk

6:03 Custodial vs. non-custodial

9:32 What is a money transmission license?

9:47 Steamships, the telegraph & Western Union

12:14 The Bank Secrecy Act

13:38 Section 1960

15:26 The Patriot Act

19:39 FinCEN's 2013 and 2019 guidance

24:42 OFAC sanctions Tornado Cash

27:30 How Tornado Cash works

30:48 Coin Center v. Yellen

32:24 DOJ indicts Roman Storm, Roman Semenov, Roman Sterlingov & Samourai Wallet developers

35:15 The Van Loon win

40:33 Developer losses

43:48 Bad facts make bad law

48:46 Brian Klein on Roman Storm's case

50:50 The Brady letter

57:00 Michael Lewellen sues for answers

1:09:24 The Blanche memo

1:18:46 The Galeotti speech

1:26:13 Catch-22 for developers

1:30:03 The chilling effect on U.S. innovation

1:33:48 Blockchain Regulatory Certainty Act

1:38:03 Promoting Innovation in Blockchain Development Act

1:45:28 What's next

Nothing in this podcast is legal or investment advice.

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Disclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by guests are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.