A senior U.S. Justice Department official told a gathering of crypto industry lobbyists and leaders in Jackson Hole, Wyoming, on Thursday that the U.S. government will no longer prosecute decentralized software developers for a specific crime — the same charge that federal prosecutors successfully convicted Tornado Cash co-founder Roman Storm on earlier this month.

The charge stems from Section 1960(b)(1)(C) of the United States Code, which makes it illegal for any unlicensed money transmitter to operate a money transmitter business that receives funds known to be of criminal origin or intended for use in illegal activities. Just weeks ago, a Manhattan jury convicted Storm of violating that statute, a charge punishable by up to five years in federal prison. The jury was unable to reach verdicts on all other charges.

At today's Jackson Hole Policy Summit, Matthew Galeotti, acting director of the U.S. Department of Justice's Criminal Division, made it clear to crypto industry leaders and lobbyists attending the summit that federal prosecutors will no longer apply Section 1960(b)(1)(C) charges against decentralized software developers. (Decrypt)