Senator Lummis Blasts DOJ Crypto Crackdown as Illegal

Senator Cynthia Lummis, a Republican from Wyoming, has expressed opposition to the Biden Administration's criminalization efforts related to Bitcoin and decentralized finance (DeFi). She argues that the Department of Justice's position on crypto self-custody conflicts with existing Treasury guidance and violates the rule of law.

Senator Cynthia Lummis Blasts Department of Justice's Crypto Crackdown as Unlawful

Washington, D.C. – U.S. Senator Cynthia Lummis (R-WY) has vehemently condemned the Department of Justice's (DOJ) recent legal actions targeting cryptocurrency self-custody, accusing the Biden administration of undermining the rule of law and violating the principles of due process.

In a strongly worded statement, Senator Lummis decried the DOJ's efforts to criminalize core aspects of the Bitcoin network and decentralized finance (DeFi), arguing that such actions are both harmful and unconstitutional.

"I am deeply concerned by the Biden administration's misguided attempt to criminalize core tenets of the Bitcoin network and DeFi," Senator Lummis said. "This overreaching and ill-conceived approach violates the rule of law and infringes on the rights of law-abiding Americans."

The Senator's rebuke comes in response to a series of recent indictments and legal actions initiated by the DOJ against cryptocurrency entities. These include the indictment of Bitcoin mixer Samourai Wallet and Tornado Cash developer Roman Storm for allegedly engaging in unlicensed money transmission.

Senator Lummis contends that the DOJ's interpretation of the law is flawed and contradicts established guidance issued by the Treasury Department's Financial Crimes Enforcement Network (FinCEN).

"The DOJ's stance is not only misguided but also conflicts with existing Treasury guidance," Senator Lummis said. "Every functioning cryptocurrency wallet and smart contract is, in essence, involved in money transmission. By criminalizing these activities, the DOJ is effectively criminalizing the very foundation of the cryptocurrency ecosystem."

The DOJ's actions have sparked widespread opposition within the cryptocurrency community, with advocacy groups like Coin Center leading the charge against the government's overreach.

"The DOJ's actions are a clear attempt to stifle innovation and undermine the growth of the cryptocurrency industry," said Peter Van Valkenburgh, director of research at Coin Center. "Their interpretation of the law is not only legally dubious but also harmful to the development of a robust and responsible digital asset ecosystem."

Coin Center has filed an amicus brief in support of Roman Storm, arguing that the publication of Tornado Cash's code is protected under the First Amendment. The organization maintains that the DOJ's prosecution of Storm sets a dangerous precedent that could have far-reaching implications for the industry.

Senator Lummis reiterated her unwavering support for responsible regulation of the cryptocurrency industry but emphasized the need for a balanced approach that fosters innovation while protecting consumers and upholding the rule of law.

"I believe in a future where digital assets play a significant role in our economy," Senator Lummis said. "However, regulation must be carefully tailored to address legitimate risks without stifling innovation or infringing on the rights of Americans."

The Senator urged the Biden administration to reconsider its approach to cryptocurrency and work with Congress to develop a comprehensive regulatory framework that balances the need for consumer protection with the principles of due process and free speech.

"The future of cryptocurrency in the United States is at stake," Senator Lummis concluded. "We must ensure that the government's actions align with the principles of liberty and the rule of law."