According to @iampaulgrewal, where software is truly decentralized, solely automates peer-to-peer transactions, and no third party has custody or control over user assets, new 18 U.S.C. 1960(b)(1)(C) charges against the third party will not be approved (source: @iampaulgrewal). According to @iampaulgrewal, this delineation indicates that enforcement under 1960(b)(1)(C) targets non-decentralized or custodial arrangements, a key factor for traders evaluating DeFi regulatory risk (source: @iampaulgrewal). According to @iampaulgrewal, traders can prioritize legal-risk screening for protocols that meet decentralized and non-custodial criteria when assessing headline and enforcement exposure tied to unlicensed money transmitting allegations (source: @iampaulgrewal).

According to @jchervinsky, the Samourai Wallet developers have reached a plea deal with the DOJ, providing some relief for the team. However, @jchervinsky highlights concerns over the DOJ's stance that non-custodial software developers are engaged in money transmission, which could have significant implications for other crypto projects and developers. Section 1960 is identified as a major risk to developer freedom, potentially impacting the broader cryptocurrency ecosystem and trading landscape by increasing legal uncertainties for non-custodial wallet providers and related DeFi protocols (source: @jchervinsky).

According to BitMEX Research, Tulip Trading Limited has been dissolved as reported on May 21, 2025 (source: BitMEX Research on Twitter). This company, previously linked to contentious legal actions over Bitcoin and blockchain protocol responsibilities, will no longer play an active role in ongoing or future litigation. The termination reduces uncertainty surrounding potential court-mandated changes to Bitcoin’s protocol, which previously caused concern among crypto traders. With Tulip Trading Limited no longer active, traders can expect a decrease in legal volatility risk for major cryptocurrencies, particularly Bitcoin, in the short term (source: BitMEX Research).