Bitcoin Policy Lab launches fund to protect non-custodial tools from regulatory threats

The Bitcoin Policy Institute (BPI) announced the launch of the P2P Rights Fund, a strategic initiative to protect the decentralized peer-to-peer integrity of the Bitcoin ecosystem. The Fund’s mission is to protect innovation, privacy, and user autonomy by protecting non-custodial tools and their developers from excessive regulation.

🚀P2P Rights Fund Announcement

mission? Protect the decentralized peer-to-peer integrity of the Bitcoin ecosystem by protecting non-custodial tools and their developers from excessive regulation.

Learn more and make a tax-deductible donation here:…

— David Zell (@DavidZell_) May 20, 2024

The P2P Rights Fund is committed to protecting the decentralized nature of Bitcoin through strategic litigation and advocacy. By supporting pivotal legal cases and providing essential regulatory guidance, the Fund aims to build a fair legal framework that fosters the growth and resilience of the Bitcoin open source community.

BPI argued that Bitcoin’s success lies in its peer-to-peer foundation, which distinguishes it from other electronic cash attempts. Because this decentralized, open-source tool is powered by its users and operates free from the influence of greed, corruption, and corruption. Politics or excessive regulation? Developers around the world have built non-custodial tools that preserve the essence of Bitcoin, including multi-signature wallets, Lightning service providers, and CoinJoin coordinators that enhance security, facilitate low-cost transactions, and ensure privacy.

Recently, U.S. regulators have taken a stance by going after developers of open source tools and companies such as Tornado Cash, Samurai Wallet, Uniswap, and MetaMask that threaten the non-custodial ecosystem. I’m drunk. These cases could lead to unfavorable legal precedents and could put the U.S. non-custodial Bitcoin ecosystem at risk. This is because the government’s broad interpretation suggests that anyone facilitating the transfer of funds should be regulated under the Bank Secrecy Act, regardless of their management of the funds. This could extend regulation to a variety of non-custodial Bitcoin tools, impacting hardware wallets, transaction broadcasting nodes, miners, and developers of pooled custody services.

The fund’s first project is protecting Samurai Wallet founders Keonne Rodriguez and William Lonergan Hill. Rodriguez and Hill were charged with conspiracy to launder money and operating an unlicensed financial services business.

“Any attempt by prosecutors to classify Samourai’s non-custodial CoinJoin tool as a financial services business risks creating a harmful precedent that could impact the entire Bitcoin ecosystem,” said BPI co-founder David Zell. He said. “By defending this case, the Fund aims to ensure that the court understands the technology and legal principles involved and pursue a favorable outcome that non-binding privacy tools cannot be regulated under the Bank Secrecy Act.”

The outcome of Rodriguez and Hill’s case could have major implications for the future of non-custodial Bitcoin tools and the broader decentralized finance landscape. Through this fund, BPI aims to ensure that innovation within the Bitcoin ecosystem can thrive under a fair and equitable legal framework by providing critical resources for defense attorneys, sponsoring amicus briefs, and supporting impact litigation. .

For more information or to donate, visit their website here.