Trump Urged to Dismiss Charges Against Roman Storm by Over 65 Crypto Organizations

Trump Urged to Drop Roman Storm Charges by 65+ Crypto Groups

Summary:
A coalition of more than 65 organizations in the U.S. cryptocurrency sector has formally requested President Donald Trump to intervene in the prosecution of Roman Storm, a Tornado Cash developer. They argue that his case poses a larger risk to software development and the country's position in digital finance. The appeal calls for clarity on regulations and tax policies while urging the Department of Justice to dismiss the charges against Storm.

Key Takeaways:

Over 65 crypto organizations are calling for President Trump's intervention in the prosecution of developer Roman Storm.
The letter emphasizes the importance of software development and requests regulatory clarity.
Storm faces charges related to operating an unlicensed money transmitting business but points to his open-source development efforts.
Advocacy groups are worried that the case may discourage developers from creating decentralized technology.
The letter also calls for updated tax guidelines for various crypto-related activities.

Developers Advocate for Open-Source Software Rights and Call for DOJ Action

More than 65 entities from the U.S. cryptocurrency industry have urged President Donald Trump to step in regarding the case against Tornado Cash developer Roman Storm. This joint letter, sent on November 20 and signed by prominent industry groups, DeFi innovators, investors, and research organizations, expresses concerns that the ongoing prosecution poses a significant threat to software development and the overall digital finance landscape in the U.S.

The appeal is one of the most significant coordinated efforts from the crypto sector since Trump resumed his presidency. It acknowledges the administration's progress over the past year in deregulating certain aspects of the cryptocurrency space, including nullifying the IRS broker rule, enacting the GENIUS Act, and lifting prior restrictions on using digital assets in retirement accounts. However, the letter identifies unresolved issues that are pushing developers and businesses to relocate overseas.

One of the main requests from the coalition is for the Department of Justice to dismiss the charges against Roman Storm. Storm was convicted in August 2025 on one count related to operating an unlicensed money transmitting business, which carries a potential maximum sentence of five years. However, the jury did not reach a conclusion regarding two more serious charges involving money laundering and sanctions violations, resulting in a partial mistrial. Prosecutors have not yet indicated whether they will attempt to retry him on those counts, and Storm remains out on bail as post-trial motions and potential appeals progress.

Advocates argue that Storm's work with Tornado Cash should be viewed as contributing to open-source software rather than functioning as a money service. They cite recent guidance from the Department of Justice, which specifies that producers of decentralized software should not face charges for unlicensed money transmission, though this policy does not have retroactive effects. Storm's legal team is expected to reference this guidance in their case.

Advocacy Groups Stress Developer Protections and Require Crypto Policy Updates

As pressure from crypto advocacy groups grows, the urgency for a response has likewise intensified. In April, the DeFi Education Fund sent a letter to David Sacks, the White House crypto advisor, labeling the prosecution of Roman Storm as a “lawless prosecution,” cautioning that it could discourage developers from creating open-source tools.

Industry figures such as Fred Ehrsam, Matt Huang, and Tim Beiko have supported this sentiment, arguing that previous guidance from FinCEN indicated that noncustodial software developers should not be classified as money transmitters, placing the current prosecution out of alignment with established guidelines.

The legal proceedings surrounding Storm remain ongoing, with an August court filing setting deadlines for post-trial motions through November. Prosecutors have stated they will decide later whether to retry him on unresolved charges.

Supporters of Roman Storm's case have managed to raise $5.3 million toward a $7 million target to facilitate his defense efforts.

The joint letter to President Trump encompasses broader concerns beyond just Storm's situation. It seeks urgent action from the Treasury and IRS to provide long-overdue tax guidance concerning staking rewards, mining rewards, cross-chain transactions, airdrops, forks, and rebases. These areas have experienced uncertainty, prompting various activities to move overseas.

Moreover, the signatories request confirmation that utilizing cryptocurrency as collateral for loans should not be regarded as a taxable event and that donations made in digital assets should enjoy the same tax treatment as stock contributions. Additionally, there is a call for interim rules from the SEC and CFTC that would safeguard open-source, permissionless development while comprehensive regulatory frameworks are still under consideration. A reaffirmation from FinCEN regarding the exclusion of noncustodial blockchain software from the Bank Secrecy Act is also a primary demand.

This letter comes amid heightened executive interest in digital assets. President Trump has already granted pardons to several high-profile individuals in the sector this year, including Ross Ulbricht, Changpeng Zhao, and Arthur Hayes. The administration has depicted the growth of digital assets as a vital aspect of U.S. economic competitiveness and has encouraged agencies to develop a unified framework for cryptocurrency regulation.