Two US lawmakers have opposed the Department of Justice’s (DOJ) attempt to expand the definition of a money-transmitting business.In a May 9 letter to US Attorney General Merrick Garland, Senators Cynthia Lummis and Ron Wyden argued that the DOJ’s broad interpretation could criminalize non-custodial crypto asset software services.According to the lawmakers:“The DOJ’s unprecedented interpretation of this statute in the context of non-custodial crypto asset software services contradicts the clear intent of Congress and the authoritative guidance of the Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN).”In April, the DOJ argued that the crypto mixer functioned as an unlicensed money transmitter as its rebuttal to Tornado Cash’s developer Roman Storm’s motion for dismissal.In its motion, the DOJ argued that controlling funds was not a prerequisite for such classification. According to the Justice Department:“The definition of ‘money transmitting’ in Section 1960 does not require the money transmitter to have ‘control’ of the funds being transferred. The definition exends to ‘transferring funds on behalf of the public by any and all means.”The lawmakers believe that the DOJ’s position was wrong as Congressional intent for the law requires that a company must have “direct receipt and control of assets” to qualify as a money-transmitting business.The lawmakers also cited the Bank Secrecy Act and several FinCEN regulations to support their argument against the DOJ’s stance.The senators also stated :“Non-custodial crypto service providers cannot be classified as money transmitter businesses because users of such services retain sole possession and control of their crypto assets.”The lawmakers urged the DOJ not to divert “from the clear, logically sound, and well-established definition of “money transmission” established by FinCEN.” They added:“Subjecting developers of non-custodial crypto asset software to potential criminal liability as unregistered money transmitters contravenes the well-established interpretation of this provision and will only serve to stifle innovation and shake confidence in the DOJ’s respect for the rule of law.”Oluwapelumi values Bitcoin’s potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.AJ, a passionate journalist since Yemen’s 2011 Arab Spring, has honed his skills worldwide for over a decade. Specializing in financial journalism, he now focuses on crypto reporting. Follow us on X for instant crypto news and insights updates.The current uncertainty in the market is being fueled by the impending Federal Open Market Committee’s (FOMC) decision on cutting interest rates.Embracing Bitcoin mining could be pivotal in Trump’s envisioned energy strategy.Courts dismissed the case without prejudice, leaving Musk an option to refile the case at a later date.The S-1 filing follows the SEC’s approval of NYSE Arca’s proposed rule change on behalf of ProShares.CryptoSlate’s latest market report dives deep into the effects corporate Bitcoin purchases have on the market.Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
