What Bitcoin Did The US Government Vs Bitcoin w/ Zack Shapiro
May 9, 2025
Zack Shapiro, a lawyer and Head of Policy at the Bitcoin Policy Institute, dives deep into the legal challenges facing Bitcoin, particularly the Samurai Wallet case. He discusses how outdated laws threaten non-custodial tools and the risks developers face. Highlighting the DOJ's troubling use of 'regulation by prosecution,' Shapiro reveals that even FinCEN had cleared Samurai of wrongdoing. With the need for political solutions alongside legal ones, he emphasizes protecting Bitcoin's decentralized nature against increasing government scrutiny.
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Bitcoin's Unique Legal Challenge
- Bitcoin's success stems from being peer-to-peer digital cash with no financial intermediary.
- Existing U.S. laws presuming intermediaries struggle to fit Bitcoin's decentralized model.
FinCEN Guidance on Wallets
- FinCEN's 2019 guidance distinguishes custodial vs non-custodial wallets for money transmission laws.
- Samurai Wallet is non-custodial and thus should not be subject to money transmitter regulations.
Regulation By Indictment Explained
- Regulation by indictment means prosecutors enforce laws by criminal cases without clear legislative guidance.
- DOJ bypassed FinCEN's expertise to expand prosecutions against non-custodial crypto tools.