In the fast-evolving world of blockchain and cryptocurrencies, regulatory clarity is like gold dust—especially for developers building innovative tools, including those powering meme tokens. Yesterday, on August 21, 2025, Peter Van Valkenburgh, Executive Director of Coin Center, shared a thought-provoking thread on X dissecting a speech by Assistant Attorney General Galeotti at the AIP summit. The speech offered some encouraging signals but left room for concerns, particularly around how the Department of Justice (DOJ) handles prosecutions related to non-custodial software in crypto.

Let's break it down. Non-custodial software refers to tools where users maintain full control over their assets without handing them over to a third party—like decentralized protocols on blockchains such as Ethereum or Solana, which are popular for launching meme tokens. Think of it as software that automates peer-to-peer transactions without intermediaries holding your funds.

Galeotti's key commitment? The DOJ will respect guidance from the Financial Crimes Enforcement Network (FinCEN) on such software. Specifically, he stated that where evidence shows the software is truly decentralized, automates P2P transactions, and no third party has custody or control over user assets, new charges under section 1960(b)(1)(C) against third parties won't be approved. This is a nod to FinCEN's rules, which clarify that developers of non-custodial tools aren't automatically money transmitters—a big win for innovation in the space.

But here's where Coin Center, a leading crypto policy think tank, raises an eyebrow. Valkenburgh points out a caveat: if criminal intent is present, other charges could still apply, and the DOJ will consider the full scope of a subject's conduct. This isn't a ironclad legal interpretation; it's more like prosecutorial discretion—meaning prosecutors decide on a case-by-case basis whether to pursue charges. For developers in the meme token ecosystem, where creativity often pushes boundaries, this wiggle room could chill experimentation.

Valkenburgh ties this directly to the ongoing case of Roman Storm, one of the developers behind Tornado Cash—a privacy-focused mixer tool on Ethereum that's been used for everything from legitimate anonymity to illicit activities. Storm was convicted, and his appeal is pending. Tornado Cash allows users to mix their crypto holdings to obscure transaction trails, a feature that could appeal to meme token traders seeking privacy. Yet, the DOJ's approach here seems at odds with Galeotti's assurances, as Valkenburgh notes: "I'm grateful... but concerned that it's a little late for that approach in Roman Storm’s case."

He emphasizes that merely writing code without ill intent shouldn't be a crime. Importantly, there's no "intent" requirement for First Amendment protections when publishing code—code is speech, after all. This echoes broader debates in crypto: should developers be liable for how others misuse their open-source tools? Galeotti affirmed that the DOJ won't hold developers responsible for bad usage, but again, this comes after Storm's prosecution, raising questions about consistency.

For meme token creators, this matters because many projects involve smart contracts—self-executing code on the blockchain. If a meme token incorporates privacy features or gets used in unexpected ways, developers could face scrutiny. Valkenburgh argues that mere statements aren't enough; we need binding legal interpretations from the DOJ, Office of Legal Counsel, or Treasury. Until then, Coin Center is pushing for legislative safe harbors like the Blockchain Regulatory Certainty Act (BRCA) and supporting lawsuits to establish precedents that publishing software isn't criminal.

This thread (original on X) highlights the tension between fostering innovation and combating crime in crypto. As meme tokens continue to explode in popularity—think Dogecoin, Shiba Inu, or newer Solana-based hits—regulatory moves like this could either boost or hinder the next wave of blockchain creativity. At Meme Insider, we're keeping a close eye on how these developments shape the knowledge base for practitioners, ensuring you stay ahead in this meme-fueled crypto revolution.

Stay tuned for more updates on crypto regs and their impact on meme tokens. What are your thoughts on the DOJ's stance? Drop a comment below!