Law of Code

Can the U.S. government send a software developer to prison for writing and publishing code? That's the question at the center of the Tornado Cash and Samourai Wallet prosecutions, and every crypto founder, builder and investor should understand the answer.This deep-dive episode walks through the history of U.S. money transmission law, how the DOJ is applying it to non-custodial software developers, what the Roman Storm verdict actually means, and what new legislation could change in 2026.Guests:Peter Van Valkenburgh — Executive Director, Coin CenterAmanda Tuminelli — Chief Executive Officer, DeFi Education FundBrian Klein — Partner at Cooley, lead defense attorney for Roman StormJake Chervinsky — Hyperliquid Policy Center (cameo)This is the most comprehensive podcast I've ever done. Welcome to Law of Code, Season 2.Timestamps:0:00 Intro3:18 What's at stake?4:40 Which developers are at risk6:03 Custodial vs. non-custodial9:32 What is a money transmission license?9:47 Steamships, the telegraph & Western Union12:14 The Bank Secrecy Act13:38 Section 196015:26 The Patriot Act19:39 FinCEN's 2013 and 2019 guidance24:42 OFAC sanctions Tornado Cash 27:30 How Tornado Cash works 30:48 Coin Center v. Yellen 32:24 DOJ indicts Roman Storm, Roman Semenov, Roman Sterlingov & Samourai Wallet developers35:15 The Van Loon win 40:33 Developer losses43:48 Bad facts make bad law48:46 Brian Klein on Roman Storm's case 50:50 The Brady letter57:00 Michael Lewellen sues for answers1:09:24 The Blanche memo1:18:46 The Galeotti speech1:26:13 Catch-22 for developers 1:30:03 The chilling effect on U.S. innovation1:33:48 Blockchain Regulatory Certainty Act 1:38:03 Promoting Innovation in Blockchain Development Act1:45:28 What's nextNothing in this podcast is legal or investment advice. Newsletter: I'm re-launching the Law of Code newsletter soon: you can ⁠⁠⁠stay updated on emerging tech law for free here⁠⁠⁠. https://www.lawofcode.fm/ Any feedback on this episode? Or how to improve the podcast? ⁠⁠Click here⁠⁠. https://forms.gle/W4d2a5aHuLJjuNdn7 Disclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by guests are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

Crypto’s current policy window in Washington is a rare opportunity to pass market structure legislation. What happens if the industry walks away from a compromise now?Bill Hughes, Senior Counsel and Director of Global Regulatory Matters at Consensys, joins the podcast to discuss crypto market structure and stablecoin policy.Timestamps➡️ 1:10 — Why Agriculture and Banking Committees shape crypto legislation➡️ 4:20 — How agencies influence drafting behind the scenes➡️ 6:40 — Stablecoin yield and illicit finance: the real sticking points➡️ 9:20 — DeFi regulation debates➡️ 17:00 — Is the Clarity Act likely to pass in 2026?➡️ 18:00 — Ethics provisions and political tensions➡️ 20:13 — Coinbase’s strategy➡️ 26:35 — Stablecoin yield fights ➡️ 33:00 — Legislative timelines ➡️ 45:36 — What to watch nextSponsor: Day One Law, a boutique corporate law firm founded by Nick Pullman. Nick and his team at Day One provide strategic legal counsel to startups, crypto projects, and Web3 innovators. ⁠You can get in contact with them via this link⁠: ⁠⁠https://www.dayonelaw.xyz/#contact Resources:📓 The latest market structure discussion draft (banking committee)📓 ⁠The GENIUS ActDisclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by the guest are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

How do prediction markets actually work, and why are state gaming regulators and the CFTC battling over who has jurisdiction to regulate?Samir Patel is an attorney at Holland & Knight, where he focuses on gambling law, prediction markets, and the intersection of crypto, derivatives, and state gaming regulation.Timestamps:➡️ 1:02 — What prediction markets are and how binary contracts work➡️ 2:51 — Prediction markets vs. sports gambling: what’s legally different?➡️ 4:02 — Are prediction markets actually “on-chain”?➡️ 7:37 — The CFTC vs. state gaming regulators: who has jurisdiction?➡️ 9:55 — Swaps, self-certification, and the Commodities Exchange Act➡️ 12:06 — How courts are splitting on federal preemption➡️ 14:39 — Why the CFTC’s silence matters more than the lawsuits themselves➡️ 18:58 — DCMs vs. FCMs: mapping the regulatory plumbing➡️ 22:00 — Prediction markets as information tools, not just bets➡️ 23:30 — What this litigation could mean for crypto and DeFi governanceSponsor: This episode is brought to you by the Decentralization Research Center (DRC), a nonprofit think tank advocating for decentralization in emerging technologies. Learn more at thedrcenter.org.Resources:📓 Commodity Exchange Act (CEA)📓 CFTC Rule 40.11📄 CFTC Staff Advisory Withdrawal of Prior Guidance on Events ContractsDisclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by the guest are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

Why are crypto custody rules for registered investment advisors due for modernization — and what could a future-proof framework look like?Sarah Helena Brennan is the General Counsel for Delphi Ventures, and Jay Stolkin is the Deputy General Counsel at Multicoin Capital. Timestamps:➡️ 0:05 — Why the custody rule matters for crypto➡️ 1:27 — The SEC’s safeguarding proposal and why this paper was written➡️ 5:58 — What the custody rule and “qualified custodians” actually require➡️ 10:26 — Why digital assets challenge legacy custody assumptions➡️ 14:47 — Fees, loss of utility, and concentration risk under the status quo➡️ 18:21 — The case for optionality and a flexible custody framework➡️ 22:53 — The five core tenets of cryptoasset safeguarding➡️ 25:50 — Lessons from the privately offered securities exemption➡️ 28:27 — On-chain verification, auditors, and real-time transparency➡️ 32:16 — Where regulators may push back—and what comes nextSponsor: Day One Law, a boutique corporate law firm founded by Nick Pullman. Nick and his team at Day One provide strategic legal counsel to startups, crypto projects, and Web3 innovators. ⁠You can get in contact with them via this link⁠: ⁠⁠https://www.dayonelaw.xyz/#contact Resources: 📄 Sarah and Jay’s Whitepaper📓 SEC Agency Rule ListDisclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by the guest are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

In this episode, Jacob Robinson and Jonathan Schmalfeld break down the biggest U.S. crypto law and policy developments of the month, from the SEC’s moves toward bringing public markets on-chain to major CFTC moves on derivatives, prediction markets, and collateral. The conversation also covers crypto tax proposals, DeFi governance disputes, banking access, privacy, quantum risk, and why regulators increasingly view crypto not as an exception, but as core financial infrastructure.Jonathan Schmalfeld is the Policy Director at The Digital Chamber and the author of the Off the Blockchain+ newsletter, where he analyzes crypto regulation, market structure, and emerging policy trends.Timestamps:➡️ 1:03 — SEC market structure reforms and DTC no-action relief➡️ 7:54 — CFTC allows crypto and tokenized treasuries as collateral➡️ 8:45 — Prediction markets and state gambling laws➡️ 13:23 — Crypto tax proposals: wash sales, staking, and airdrops➡️ 16:03 — Aave, DAO governance, and token vs. equity conflicts➡️ 21:48 — GENIUS Act implementation and stablecoin interest debates➡️ 27:33 — The end of Operation Choke Point 2.0 and legislative fixes➡️ 31:02 — DeFi liquidations, market manipulation, and public debate➡️ 34:20 — Quantum computing risk and Bitcoin’s long-term resilience➡️ 38:46 — Michael Selig confirmed as CFTC ChairSponsor: This episode is brought to you by the Decentralization Research Center (DRC), a nonprofit think tank advocating for decentralization in emerging technologies. Learn more at thedrcenter.org.Resources: 📄 SEC’s No Action Letter to the DTC✉️ CFTC Digital Assets Pilot Program Announcement📓 Draft of the PARITY Act📄 FDIC Notice of Proposed Rulemaking for Stablecoins✉️ ⁠Jonathan’s Off the Blockchain+ Newsletter⁠Disclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by the guest are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

In this episode, Jonathan Schmalfeld and Jacob Robinson walk through the biggest crypto law and policy developments of the month of November. Jonathan is the Policy Director at The Digital Chamber, where he leads federal and state advocacy on digital asset regulation. Timestamps:➡️ 1:19 — Senate Agriculture Committee releases market structure draft➡️ 3:22 — Why DeFi and AML sections remain blank➡️ 3:52 — Chair Atkins’ speech and push for taxonomy➡️ 6:32 — Treasury & IRS guidance on staking ETFs➡️ 10:39 — Uniswap’s fee switch vote and winding down➡️ 13:53 — Coinbase reincorporates from Delaware to Texas➡️ 16:19 — MEV exploit trial ends in mistrial➡️ 23:36 — Samurai Wallet sentencing and liability risks➡️ 26:55 — DOJ’s Tornado Cash filing and self-custody issues➡️ 30:29 — Digital Chamber launches State Network➡️ 33:37 — OCC guidance allowing banks pay gas fees➡️ 36:50 — What to watch next in GENIUS implementationSponsor: Day One Law, a boutique corporate law firm founded by Nick Pullman. Nick and his team at Day One provide strategic legal counsel to startups, crypto projects, and Web3 innovators. ⁠You can get in contact with them via this link⁠: ⁠⁠https://www.dayonelaw.xyz/#contactDisclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by the guest are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

After the GENIUS Act was enacted, the U.S. Treasury issued an Advance Notice of Proposed Rulemaking to gather public and industry input before drafting implementing regulations. Some of the most influential submissions came from major banking and traditional finance associations, outlining how they believe U.S. stablecoin regulation should look.J.W. Verret, Associate Professor of Law at the Antonin Scalia Law School at George Mason University, submitted a detailed rebuttal pushing back on the banks’ expansive interpretation of statutory authority and their call to ban “indirect yield.”Timestamps:➡️ 1:02 — Why this rulemaking matters➡️ 2:55 — Why JW felt compelled to respond➡️ 4:48 — How agencies use comments➡️ 5:17 — What counts as ‘interest’ or ‘yield’?➡️ 7:00 — The push to regulate affiliates and third-party providers➡️ 10:34 — Why a prohibition on ‘indirect yield’ matters➡️ 14:55 — Zcash, privacy tech, and Roman Storm➡️ 18:00 — What happens next in GENIUS rulemaking➡️ 19:11 — Do stablecoins drain bank deposits?Sponsor: Day One Law, a boutique corporate law firm founded by Nick Pullman. Nick and his team at Day One provide strategic legal counsel to startups, crypto projects, and Web3 innovators. ⁠You can get in contact with them via this link⁠: ⁠⁠https://www.dayonelaw.xyz/#contactResources: 📓 GENIUS Act📄 Joint Trades Letter (ABA + ICBA + BPI coalition)✉️ J.W. Verret’s Rebuttal LetterDisclaimer: This podcast is for informational and educational purposes only and does not constitute legal or investment advice. Views expressed by the guest are their own and do not necessarily reflect those of their employers. Listening to this podcast does not create an attorney-client relationship.

In this episode, Jacob is joined by DoubleZero’s General Counsel, Mari Tomunen, and Cooley’s Connor Tweardy to unpack the U.S. SEC’s Division of Corporation Finance’s landmark no-action letter to DoubleZero, a decentralized physical infrastructure (DePIN) project that became the first crypto initiative in over five years to secure such relief.Timestamps: ➡️ 01:20 – Why DoubleZero engaged with the SEC➡️ 03:00 – Communicating DePIN to regulators➡️ 04:40 – Making decentralization “lawyer-friendly” ➡️ 07:00 – Why the token's status was crucial➡️ 08:20 – Compliance by design➡️ 10:00 – The DoubleZero Foundation’s role➡️ 11:45 – How the SEC evaluated “managerial efforts” ➡️ 13:20 – How an international footprint shaped dialogue with regulators➡️ 15:30 – Lessons for other projects➡️ 18:00 – The SEC’s “efforts balancing” test➡️ 22:00 – Why discretionary control and passive income models raise red flags➡️ 26:00 – Designing compliance into your protocol➡️ 30:00 – Advice for teams pursuing regulatory claritySponsor: Day One Law. ⁠⁠ This episode is brought to you by ⁠⁠⁠Day One Law⁠, a boutique law firm helping crypto startups navigate complex legal challenges. Subscribe to ⁠⁠⁠Day One’s free monthly newsletter⁠⁠⁠ for legal and regulatory updates.Resources:No-Action Letter: https://www.sec.gov/files/corpfin/no-action/doublezero-final-conformed-092625.pdfCooley LLP's blog post: https://www.cooley.com/news/coverage/2025/2025-09-29-doublezero-secures-no-action-relief-from-secDisclaimer: The information in this podcast is provided for educational and informational purposes only and should not be construed as legal advice. Listening to this episode or contacting the guests does not create an attorney-client relationship. For advice regarding your specific situation, please consult your own legal counsel.