Trump's Pro-Innovation Stance on Crypto Misses a Crucial Component: Developer Protection

The Republican Nationwide Conference has endorsed former President Donald Trump’s new platform, highlighting a major shift in direction of a pro-innovation stance on cryptocurrency.

The Republican Nationwide Conference has thrown its weight behind former President Donald Trump’s platform, signaling a potential shift toward a pro-innovation stance on cryptocurrency.

The platform includes commitments to protect Americans' rights to mine Bitcoin, self-custody digital assets, and transact freely. However, a key component seems to be missing: protection for builders of decentralized projects from government overreach and criminal prosecution.

Biden Administration’s Hostility Toward Crypto

The cryptocurrency industry has faced significant hostility from President Joe Biden's administration, with Ripple and Coinbase among the companies targeted by the government.

The Justice Department (DOJ) has been particularly heavy-handed in its treatment of the creators of privacy-preserving technologies. Notably, Roman Storm and Roman Semenov, the developers of Tornado Cash, have faced severe legal consequences.

The U.S. Treasury Department sanctioned Twister Money, a decentralized protocol for private Ethereum transactions, due to its alleged use by the Lazarus Group and other bad actors for money laundering.

The DOJ charged Storm and Semenov with conspiracy to commit money laundering and sanctions violations, even though they were not the primary architects of the software.

While these prosecutions may be valid, critics argue that they mischaracterize the intent of the developers and threaten innovation in privacy-enhancing technologies.

Publishing open-source software is a form of free speech protected by the First Amendment, yet the application of sanctions law to the builders in this case raises concerns.

Privacy-Preserving Technologies and the Battleground

Twister Money and other privacy tools serve legitimate data privacy and confidentiality purposes. Technologies like zero-knowledge proofs and homomorphic encryption are crucial for protecting sensitive information.

The U.S. government has historically funded the creation of similar applications, like Tor and Signal, which enhance user privacy and secure communication.

However, it becomes a battleground when the state prosecutes the builders for potential future misuse of their own tools, threatening and stifling innovation in key areas like consumer protection and financial sovereignty.

Trump’s Pro-Innovation Campaign

Ohio Senator J.D. Vance's involvement in Trump's campaign signals a pro-innovation and pro-crypto stance.

A Bitcoin holder and former Silicon Valley employee, Vance has worked on legislation to provide regulatory clarity for the crypto industry.

Trump has criticized the Biden administration's handling of the crypto sector and is set to speak at a Bitcoin conference in Nashville. His campaign policies, unlike the current administration's approach, promise a friendlier environment for the advancement of cryptocurrencies.

The Need for Developer Protection

While the provisions in Trump's platform to protect the rights of Bitcoin miners and users are a step in the right direction, they fail to address the rights of decentralized application builders.

Without guarantees of freedom from government interference and criminal charges, the progress within the crypto sphere will remain tenuous.

Hence, a second Trump administration should commit to supporting the rights of those developers who work on the technologies that enable Bitcoin mining, self-wallet custody, and free transactions. These builders must be protected to make the digital currency space safer and more hospitable to innovation.

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