SKN | Coin Center Argues Crypto Code Is Protected Free Speech Under First Amendment

Key Points

• Coin Center argues crypto code is protected speech.
• Developers should not be liable for how code is used.
• Debate centers on distinction between speech and conduct.

Coin Center has reinforced its position that writing and publishing cryptocurrency software should be treated as protected speech under the First Amendment of the United States Constitution.

In a recent report, Executive Director Peter Van Valkenburgh and Director of Research Lizandro Pieper argued that software code is fundamentally expressive, comparing it to writing a book or publishing a recipe.

Legal Framework for Developers

The report outlines a framework to help courts distinguish between protected activity and regulated conduct. According to the authors, developers remain within the bounds of free speech when they simply create, publish, or maintain software.

However, once developers begin directly interacting with users—such as controlling funds, executing transactions, or making decisions on behalf of users—they may cross into regulated financial activity.

Ongoing Legal Uncertainty

The debate comes amid rising legal pressure on crypto developers, particularly following high-profile cases like that of Roman Storm. His prosecution has raised concerns about whether developers can be held responsible for how decentralized software is used by others.

Coin Center argues that holding developers liable in such cases risks misapplying financial regulations to activities that are primarily expressive in nature.

Courts Grapple With Code vs Conduct

Some courts have suggested that software, because it produces real-world effects when executed, may be considered conduct rather than speech. Coin Center strongly disputes this view, stating that existing Supreme Court precedent supports treating code as protected expression.

The report references past rulings, including those involving publishing and advisory services, to argue that simply providing information or tools does not equate to performing a regulated financial role.

Developers Are Not Financial Intermediaries

A central argument in the report is that crypto developers should not be treated as traditional financial intermediaries. Unlike banks or custodians, developers do not necessarily hold user funds or act on their behalf.

By labeling developers as intermediaries for regulatory convenience, Coin Center warns that authorities risk undermining both innovation and constitutional protections.

Implications for Crypto Regulation

The outcome of this legal debate could have significant implications for the future of decentralized technologies. A ruling that limits protections for code could expose developers to liability, potentially slowing innovation across the blockchain ecosystem.

Conversely, affirming code as protected speech would reinforce the legal foundation for open-source development and decentralized systems.

A Defining Legal Question for Web3

As crypto continues to evolve, the distinction between speech and conduct in software development remains one of the most critical legal questions facing the industry. How courts interpret this boundary will shape not only regulation, but also the future of innovation in decentralized finance and beyond.