Coin Center Fights for Crypto Code as Free Speech in Landmark Legal Battle!

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Crypto code is speech, not conduct, Coin Center tells U.S. courts

Coin Center is actively advocating for cryptocurrency developers, claiming that sharing their software code is a form of protected expression guaranteed by the First Amendment of the U.S. Constitution.

Summary

  • Coin Center says publishing crypto software code should be treated as protected speech under the U.S. Constitution.
  • The report draws a clear line between writing code and actions like handling user funds or executing transactions on behalf of users.

A new report from Coin Center argues that creating and distributing cryptocurrency code should be protected under the First Amendment, just like publishing a book or sharing a recipe. Coin Center’s Executive Director Peter Van Valkenburgh and Director of Research Lizandro Pieper made this claim in the report released on Monday.

This research comes at a crucial moment, as software developers are increasingly facing legal scrutiny regarding the applications of their work. This is particularly evident in recent, highly publicized criminal cases involving privacy tools and decentralized apps.

When does code become conduct?

The Coin Center report aims to distinguish between speech that is legally protected and actions that regulators are justified in monitoring, asserting that not all actions by developers require the same level of scrutiny.

The authors argue that misunderstandings in lower courts regarding the difference between actions and expression within software publishing have led to a developing idea: a ‘functional code theory’ that limits First Amendment protections.

Some courts have considered software a type of action because it can cause things to happen in the real world. However, Coin Center disagreed with this perspective.

As an analyst, I’ve been following a fascinating legal debate. Some courts are starting to view software differently – not just as words on a screen, but as actions with tangible consequences. This line of thinking suggests that because software *does* things in the real world, it’s more akin to *conduct* – something you do – rather than simply *speech* – something you say. It’s a subtle but potentially significant shift in how the law approaches digital technology.

We believe these actions are clearly a form of protected speech, and the Supreme Court has consistently supported this view, despite some disagreements in lower courts.

According to the group, a developer becomes subject to regulations only when they directly handle user money, carry out transactions for users, or make choices on their behalf. Simply creating and updating code, they claim, shouldn’t require any licenses or compliance measures.

These individuals are creators and communicators, not official representatives or legal guardians. Applying rules meant for financial transactions to their speaking activities would go against the established reasons for financial regulation and would likely violate the First Amendment by restricting speech before it even happens.

Legal pressure builds around crypto developers

Coin Center highlighted recent legal cases as evidence that courts and regulators are still figuring out how to deal with decentralized technologies under current laws.

Roman Storm, a developer associated with the Tornado Cash cryptocurrency protocol, was found guilty last year of running an illegal money transmission service. His lawyers are now trying to get the conviction overturned, pointing to a Supreme Court case, Cox Communications v. Sony Music, to argue that he didn’t knowingly participate in any criminal behavior.

The creators of Samourai Wallet, a Bitcoin wallet designed for privacy, also faced charges like those in this case and were sentenced to between four and five years in prison.

As an analyst, I’m seeing a lot of worry within the tech industry right now. Developers are increasingly concerned that contributing open-source code could make them legally responsible for how others end up using it – potentially opening them up to lawsuits or other liabilities.

First Amendment framework takes center stage

Coin Center based its case on established legal principles, pointing to the 1985 Supreme Court ruling in Lowe v. SEC. This ruling determined that simply sharing information – without handling clients’ money or making trades for them – is considered protected free speech, not a regulated financial service.

Historically, managing money involved banks and other institutions acting as middlemen. Cryptocurrency systems often eliminate these intermediaries, enabling direct transfers between individuals and giving users complete control of their own funds.

Van Valkenburgh and Pieper suggest that regulating developers as intermediaries simply to make things easier for administrators could overextend the legal framework beyond what it was originally meant to cover.

Software related to cryptocurrency doesn’t require creating new laws or special exceptions. It simply means applying existing First Amendment rights to this new technology.

Today, with computers and software driving how we share ideas and manage our economy, those fundamental principles are even more important. Creating and sharing code is a form of expression, and in a free society, that expression shouldn’t be restricted or censored.

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2026-04-21 10:14