Pardoning the Samourai Developers Would Restore Legal Clarity and Protect Non-Custodial Code

The Samourai Wallet development case raises fundamental questions about treating non-custodial software and its developers.
About the case
The Samourai Wallet development case raises fundamental questions about treating non-custodial software and its developers. Keonne Rodriguez and William Lonergan Hill were charged with money laundering and operating an unlicensed money transmitting business, despite their software not transmitting or safeguarding any value. The prosecution argued that building software allowing users to construct collaborative Bitcoin transactions in a privacy-preserving way is functionally equivalent to operating a financial institution. However, the facts show that users controlled their own keys, initiated their own transactions, and never relied on the developers to transmit or safeguard value.

Zack Shapiro, an attorney and startup advisor, argues that this case is a prime example of a misapplied law and calls for the pardon of the Samourai developers. In an article for the Bitcoin Policy Institute, Shapiro explains that non-custodial tools fall outside the BSA's money-transmitter framework because there is no transfer of value by a third party.
The case for pardoning the Samourai developers

The case for pardoning the Samourai developers is not just about correcting a misapplied law. It is also about protecting the future of non-custodial, open-source software. Non-custodial tools are essential to the functioning of decentralized currencies, such as Bitcoin, which rely on the development of open-source software to operate.
- Important background information:
- The Bank Secrecy Act (BSA) distinguishes between software authors and regulated financial intermediaries. Non-custodial tools fall outside the BSA's money-transmitter framework because there is no transfer of value by a third party.
- Why this matters:
- Collapsing the distinction between developing a tool and operating a service would introduce an untenable level of risk for anyone building privacy-enhancing or security-critical software.
Correcting a misapplied law
The Samourai Wallet case is not the only instance of a misapplied law affecting non-custodial developers. In fact, a pardon of the Samourai developers would be a powerful statement by the U.S. government that it is committed to protecting the rights of developers and the future of non-custodial, open-source software.
Protecting the future of non-custodial, open-source software
A pardon of the Samourai developers would also send a strong message about the importance of non-custodial, open-source software in the future of finance. As cryptocurrency adoption continues to grow, it is essential that the U.S. government takes steps to protect the rights of developers and ensure that these tools can continue to operate without fear of arbitrary prosecution.
Key Takeaways:
- The case against the Samourai developers is based on a misapplied law.
- A pardon of the Samourai developers would be a powerful statement about the government's commitment to protecting the rights of developers and non-custodial, open-source software.
- Non-custodial tools are essential to the functioning of decentralized currencies, such as Bitcoin, and protecting the future of these tools is crucial for the growth and development of the cryptocurrency industry.
Conclusion:
A pardon of the Samourai developers would be a significant step in correcting a misapplied law and protecting the future of non-custodial, open-source software. It would also send a strong message about the importance of protecting the rights of developers in the cryptocurrency industry. As cryptocurrency adoption continues to grow, it is essential that the U.S. government takes steps to protect the rights of developers and ensure that these tools can continue to operate without fear of arbitrary prosecution.
What to watch next:
- The outcome of the Samourai developers' appeal.
- The impact of the pardon on the future of non-custodial, open-source software.
Resources & links:
- Original article
- Bitcoin Policy Institute
- Zack Shapiro
- Bitcoin Magazine 'Legal' category
- Bitcoin Magazine
Additional images:
- All images used in this post are courtesy of the Bitcoin Magazine


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