Bankless Roman Storm Verdict: A Turning Point for DeFi | Jake Chervinsky & Amanda Tuminelli
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Aug 13, 2025 Jake Chervinsky, Chief Legal Officer at Variant Fund, and Amanda Tuminelli, Executive Director of the DeFi Education Fund, dive into the implications of the Roman Storm verdict on DeFi. They address regulatory threats to developers and the potential for appeals, highlighting the need for legislative reform. Discussions reveal how the crypto industry can mobilize to protect developer rights and the political landscape shaping future regulations. With a focus on the Clarity Act and the Responsible Finance Innovation Act, they emphasize the importance of engaging lawmakers for a favorable crypto environment.
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Conviction's Broad Chilling Effect
- The conviction on any count is devastating for DeFi because it signals developers can be criminally liable for non-custodial code use.
- Roman's acquittals on two major counts reduced his maximum exposure from decades to five years, which is still serious.
DOJ Rewrites Money Transmission Theory
- DOJ shifted its interpretation of money transmission to say facilitation suffices instead of custody or control.
- Judge Thaler accepted that theory in jury instructions, making the conviction vulnerable to appeal on legal error grounds.
Industry Followed Old FinCEN Guidance
- Jake recounts how FinCEN guidance historically required control for money-transmitter status and industry followed it.
- The DOJ's sudden reversal with Tornado Cash prosecutions represented a political about-face, he says.