Blockchain developer Michael Lewellen has filed a lawsuit against the US Department of Justice (DOJ), alleging that the Biden administration is stifling innovation in the cryptocurrency sector with broad interpretations of money-transmission laws. Lewellen's lawsuit focuses on his work with Pharos, a non-custodial protocol that enables crowdfunding campaigns without intermediaries. He argues that non-custodial tools like Pharos should not be subject to federal money-transmission laws. Lewellen claims that the DOJ's enforcement actions against similar protocols like Tornado Cash demonstrate an expansion of federal authority. The lawsuit reflects the growing tension between regulators and the crypto industry, with developers arguing that regulatory ambiguity drives innovation overseas.



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