Advocacy Groups Urge Presidential Intervention in Roman Storm’s Retrial

By: crypto insight|2025/11/21 04:00:09

Key Takeaways

Over 65 cryptocurrency advocacy groups call for presidential intervention in the Roman Storm case, citing concerns over regulatory fairness.
Storm’s conviction for unlicensed money transmission sparks debate over code as protected speech.
The role of regulations on DeFi platforms and how their clarity affects innovation is under scrutiny.
The potential impacts of legal interpretations on the future of developers creating open-source software.

Introduction

The complex landscape of cryptocurrency and blockchain technology has brought significant legal debates to the forefront, one of which centers around Roman Storm, co-founder of Tornado Cash. In light of his legal battles, more than 65 cryptocurrency and blockchain advocacy groups have issued a plea to President Donald Trump to step in and possibly alter the course of the proceedings. This article delves into the multifaceted issues surrounding Storm’s case, the advocacy for clearer crypto-related policies, and the broader implications for the future of digital innovation.

Roman Storm’s Legal Tribulations

Roman Storm’s journey through the U.S. legal system is emblematic of the challenges faced by those pioneering in the world of blockchain technology. Convicted on one count of running an unlicensed money transmitting business, the Tornado Cash co-founder finds himself on the cusp of a potential retrial for additional charges. The digital rights and cryptocurrency communities have raised concerns about the impact of these proceedings on the broader developer ecosystem.

Legal Charges and Advocacy Response

The conviction arose from allegations that Storm operated an unlicensed money transmission service, a charge that has prompted significant backlash from the blockchain community. Notably, Jay Clayton, the interim U.S. attorney for the Southern District of New York, has opposed Storm’s motion for acquittal, indicating a steadfast prosecutorial stance. Conversely, advocacy groups are emphasizing that writing code should not be conflated with criminal intent—a notion underscored by acting assistant attorney general, Matthew Galeotti, who acknowledged the complexity of these issues in a recent summit.

The Push for Presidential Clemency

The request for presidential intervention underscores a significant moment in the crypto policy debate, where more than 65 companies and advocacy organizations have united in their stance. Their collective letter implores the president to urge the Department of Justice to dismiss the charges against Storm. The organizations argue that his work on Tornado Cash, essentially the publication of open-source software, does not constitute a financial crime. They propose that dropping the charges could bolster the belief that “code is speech” and affirm the administration’s commitment to safeguarding innovation.

The Intersection of Regulation and Innovation

The controversy surrounding Storm’s conviction echoes broader concerns about the regulatory environment faced by blockchain innovators. Advocacy groups are not only focused on individual cases like Storm’s but are also rallying for structural changes in the approach to digital assets.

Regulatory Clarity for DeFi and Beyond

A central theme in the advocacy efforts is an appeal for regulatory clarity. Groups like the Solana Policy Institute and the Blockchain Association have urged the president to direct federal agencies such as the IRS and the US Treasury to clarify tax policies concerning digital assets. In addition, they emphasize the need to protect decentralized finance (DeFi) platforms from overbearing regulation that could stifle innovation.

Code as a Form of Expression

The legal acceptance and protection of code as a form of speech under the First Amendment are pivotal to the case. Success in this argument could set a precedent that would influence how developers go about creating open-source software, potentially shielding them from similar charges. This case serves as a litmus test for future interactions between innovative technologies and traditional legal frameworks.

Looking Ahead: Implications for Developers and the Crypto Industry

The outcome of the Roman Storm case and the advocacy groups’ efforts could have lasting impacts on how blockchain technology evolves within the legal boundaries of the United States. A favorable outcome for Storm could reinforce the notion that developers should not face legal jeopardy for innovating in ways that challenge conventional norms.

WEEX’s Role in the Evolving Landscape

In this rapidly changing environment, platforms like WEEX are positioned to benefit from regulatory clarity and protection for developers. By fostering an ecosystem that supports open source distribution and innovation, WEEX aligns itself with the principle of safeguarding digital expression while navigating the legal complexities of cryptocurrency markets.

FAQs

What are the charges against Roman Storm?

Roman Storm was convicted for running an unlicensed money transmitting business. He is facing a potential retrial on two other charges related to conspiracy for money laundering and violating sanctions.

Why are advocacy groups asking the president to intervene?

Advocacy groups believe the charges against Storm could unfairly criminalize the work of developers who are merely publishing open-source software. They argue that this sets a dangerous precedent for innovation and free speech in code.

How does this case affect the perception of code as free speech?

The case highlights a pivotal issue—whether code can be considered a form of protected speech under the First Amendment. A positive ruling for Storm could bolster this notion, influencing future legal interpretations.

Why is regulatory clarity important for DeFi and crypto?

Regulatory clarity is crucial as it provides a predictable framework under which developers and companies can operate. This prevents stifling innovation with ambiguous or overly burdensome regulations.

How does WEEX fit into this regulatory landscape?

WEEX, by supporting open development and embracing regulatory clarity, seeks to position itself as a pivotal player in the crypto space. It aims to balance compliance with fostering technological innovation and user freedom.

Over the past 24 hours, the crypto market has shown strong momentum across multiple dimensions. The mainstream discussion has focused on Coinbase's official entry into the prediction market through the acquisition of The Clearing Company, as well as the intense controversy within the AAVE community regarding token incentives and governance rights.

In terms of ecosystem development, Solana has introduced the innovative Kora fee layer aimed at reducing user transaction costs; meanwhile, the Perp DEX competition has intensified, with the showdown between Hyperliquid and Lighter sparking widespread community discussion on the future of decentralized derivatives.

I. Mainstream Topics

1. Coinbase Acquires The Clearing Company, Officially Entering Prediction Market

This week, Coinbase announced the acquisition of The Clearing Company, marking another significant move to deepen its presence in this field after last week's announcement of launching a prediction market on its platform.

The Clearing Company's founder, Toni Gemayel, and the team will join Coinbase to jointly drive the development of the prediction market business.

Coinbase's Product Lead, Shan Aggarwal, stated that the growth of the prediction market is still in its early stages and predicts that 2026 will be the breakout year for this field.

The community has reacted positively to this, generally believing that Coinbase's entry will bring significant traffic and compliance advantages to the prediction market. However, this has also sparked discussions about the industry's competitive landscape.

Jai Bhavnani, Founder of Rivalry, commented that for startups, if their product model proves to be successful, industry giants like Coinbase have ample reason to replicate it.

This serves as a reminder to all entrepreneurs in the crypto space that they must build significant moats to withstand competition pressure from these giants.

2. Kalshi Launches Kalshi Research and Integrates BSC Network

Regulated prediction market platform Kalshi launched its research arm, Kalshi Research, this week, aimed at opening its internal data to the academic community and researchers to facilitate exploration of prediction market-related topics.

Its inaugural research report highlights Kalshi's outperformance in predicting inflation compared to Wall Street's traditional models. Kalshi co-founder Luana Lopes Lara commented that the power of prediction markets lies in the valuable data they generate, and it is now time to better utilize this data.

Meanwhile, Kalshi announced its support for the BNB Chain (BSC), allowing users to deposit and withdraw BNB and USDT via the BSC network.

This move is seen as a significant step for Kalshi to open its platform to a broader crypto user base, aiming to unlock access to the world's largest prediction market. Furthermore, Kalshi also revealed plans to host the first Prediction Market Summit in 2026 to further drive industry engagement and development.

3. AAVE Token Incentive Controversy Persists as Founders and Whales Increase Holdings Against the Market Trend

The AAVE community recently engaged in heated debates around an Aave Improvement Proposal (AIP) titled "AAVE Tokenomics Alignment Phase One - Ownership Governance," aiming to transfer ownership and control of the Aave brand from Aave Labs to Aave DAO.

Aave founder Stani Kulechov publicly stated his intention to vote against the proposal, believing it oversimplifies the complex legal and operational structure, potentially slowing down the development process of core products like Aave V4.

The community's reaction was polarized. Some criticized Stani for adopting a "double standard" in governance and questioned whether his team had siphoned off protocol revenue, while others supported his cautious stance, arguing that significant governance changes require more thorough discussion.

This controversy highlights the tension between the ideal of DAO governance in DeFi projects and the actual power held by core development teams.

Despite governance disputes putting pressure on the AAVE token price, on-chain data shows that Stani Kulechov himself has purchased millions of dollars' worth of AAVE in the past few hours.

Simultaneously, a whale address, 0xDDC4, which had been quiet for 6 months, once again spent 500 ETH (approximately $1.53 million) to purchase 9,629 AAVE tokens. Data indicates that this whale has accumulated nearly 40,000 AAVE over the past year but is currently in an unrealized loss position.

The founder and whale's increased holdings during market volatility were interpreted by some investors as a confidence signal in AAVE's long-term value.

4. Top Articles: DeFi Curators and Ethereum Annual Summary

In this week's top article, Morpho Labs' "Curator Explained" detailed the role of "curators" in DeFi.

The article likened curators to asset managers in traditional finance, who design, deploy, and manage on-chain vaults, providing users with a one-click diversified investment portfolio.

Unlike traditional fund managers, DeFi curators execute strategies automatically through non-custodial smart contracts, allowing users to maintain full control of their assets. The article offered a new perspective on the specialization and risk management in the DeFi space.

Another widely circulated article, "Ethereum 2025: From Experiment to Global Infrastructure," provided a comprehensive summary of Ethereum's development over the past year. The article noted that 2025 is a crucial year for Ethereum's transition from an experimental project to global financial infrastructure. Through the Pectra and Fusaka hard forks, Ethereum achieved significant reductions in account abstraction and transaction costs.

Furthermore, the SEC's clarification of Ethereum's "non-securities" nature and the launch of tokenized funds on the Ethereum mainnet by traditional financial giants like JPMorgan marked Ethereum's gaining recognition from mainstream institutions. The article suggested that whether it is the continued growth of DeFi, the thriving L2 ecosystem, or the integration with the AI field, Ethereum's vision as the "world computer" is gradually becoming a reality.

II. Mainstream Ecosystem Updates

1. Solana: Launches Kora Fee Layer and propAMM Data Research

The Solana Foundation engineering team released a fee layer solution called Kora this week.

Kora is a fee relayer and signatory node designed to provide the Solana ecosystem with a more flexible transaction fee payment method. Through Kora, users will be able to achieve gas-free transactions or choose to pay network fees using any stablecoin or SPL token. This innovation is seen as an important step in lowering the barrier of entry for new users and improving Solana network's availability.

Additionally, a deep research report on propAMM (proactive market maker) sparked community interest. The report's data analysis of propAMMs on Solana like HumidiFi indicated that Solana has achieved, or even surpassed, the level of transaction execution quality in traditional finance (TradFi) markets.

For example, on the SOL-USDC trading pair, HumidiFi is able to provide a highly competitive spread for large trades (0.4-1.6 bps), which is already better than the trading slippage of some mid-cap stocks in traditional markets.

Research suggests that propAMM is making the vision of the "Internet Capital Market" a reality, with Solana emerging as the prime venue for all of this to happen.

2. Perp DEX: Hyperliquid vs. Lighter Competition Intensifies

The competition in the perpetual contract DEX (Perp DEX) space is becoming increasingly heated.

In its latest official article, Hyperliquid has positioned its emerging competitor, Lighter, alongside centralized exchanges like Binance, referring to it as a platform utilizing a centralized sequencer. Hyperliquid emphasizes its transparency advantage of being "fully on-chain, operated by a validator network, and with no hidden state."

The community widely interprets this as Hyperliquid declaring "war" on Lighter. The technical differences between the two platforms have also become a focal point of discussion: Hyperliquid focuses on ultimate on-chain transparency, while Lighter emphasizes achieving "verifiable execution" through zero-knowledge proofs to provide users with a Central Limit Order Book (CLOB)-like trading experience.

This battle over the future direction of decentralized derivatives exchanges is expected to peak in 2026.

Meanwhile, discussions about Lighter's trading fees have surfaced. Some users have pointed out that Lighter charged as much as 81 basis points (0.81%) for a $2 million USD/JPY forex trade, far exceeding the near-zero spreads of traditional forex brokers.

Some argue that Lighter does not follow a B-book model that bets against market makers, instead anchoring its prices to the TradFi market, and the high fees may be related to the current liquidity or market maker balance incentives. Providing a more competitive spread for real-world assets (RWA) in the highly volatile crypto market is a key issue Lighter will need to address in the future.