Biden Administration Hinders Crypto Industry, Blockchain Expert Files Lawsuit

JAKARTA - The increasingly popular blockchain technology and offering a more transparent and efficient system in various fields, has faced serious challenges from the United States (US) government policy under Joe Biden's power. President Joe Biden's administration is considered to have implemented too strict regulations against the crypto industry, sparking resistance from developers.

A blockchain expert, Michael Lewellen, even took legal action by suing the US Department of Justice (DOJ). He feels the government's regulations regarding remittances hinder innovation in the field of crypto technology. The lawsuit focuses on Pharos, a device designed to raise funds transparently without intermediaries.

"I am fighting against this unfair government action because the future of crypto innovation in America is at stake," Lewellen said.

Pharos allows users to manage transactions without direct control over funds, in contrast to conventional money transfer services such as the Western Union. Lewellen argues that devices like Pharos should not be subject to the same rules as traditional financial institutions. He also gave an example of the DOJ case against Tornado Cash protocol as an example of abuse of authority.

According to Lewellen, a guide from the Financial Crimes Enforcement Network (FinCEN) previously stated that non-custodial devices (without fund storage by third parties) were not categorized as remittance services. However, DOJ is now implementing stricter rules. "This threatens freedom to create new technology," said Lewellen.

This lawsuit describes the feud between crypto technology developers and US regulators. Many developers are confused by unclear rules, some of whom even choose to move abroad. Meanwhile, regulators argue that strict rules are needed to prevent crime and protect consumers.

Amanda Tuminelli of the DeFi Education Fund praised Lewellen's courage in suing the government. Support also came from Peter Van Valkenburgh of Coin Center, who stressed Lewellen's right to developing software without any pressure from the government.

The court's decision in this case will be an important test for crypto policy in the US. Whether this case will produce clearer rules or tighten regulations, the impact will be enormous for the future of crypto technology in the country.