Senator Cynthia Lummis Criticizes DOJ’s Stance on Self-Custody Wallets in Crypto

Senator Cynthia Lummis Criticizes DOJ’s Stance on Self-Custody Wallets

Senator Cynthia Lummis (R-WY) recently voiced her concerns regarding the U.S. Department of Justice’s controversial stance on self-custody wallets. This comes after the DOJ brought unlicensed money-transmitting charges against crypto mixers Tornado Cash and Samourai Wallet.

Lummis’ Criticism

Senator Lummis expressed her deep unease with the DOJ’s argument that non-custodial software could be considered a money transmission service. She highlighted that this position contradicts existing Treasury guidance, common sense, and violates the rule of law.

Legal Actions Against Crypto Mixers

The DOJ’s arrest of Samourai Wallet founders and the legal actions taken against Tornado Cash developer have raised concerns within the crypto community. The crackdown on these companies could have broader implications for the legality of owning and holding digital asset wallets.

Implications for the Crypto Community

The DOJ’s actions signal a willingness to treat crypto mixers as unlicensed money transmitters, potentially leading to more regulatory actions in the sector. The debate centers around whether crypto mixing safeguards privacy or enables illicit activities.

Challenges Faced by Tornado Cash and Samourai Wallet

Tornado Cash and Samourai Wallet are facing allegations of facilitating money laundering transactions, with the former accused of laundering funds for hacking collectives like the Lazarus Group. While the legal battle is ongoing, the defendants are pushing back against the government’s claims.

Future Outlook

It remains to be seen if U.S. lawmakers, including Senator Lummis, will take action against what some perceive as executive overreach. The outcome of this case could have significant implications for self-custody wallet users in the crypto community.