A Texas judge rejects a crypto developer's request to seek exemption from the Money Transfer Act for his software

According to Cointelegraph, a court in Texas has dismissed a lawsuit filed by crypto developer Michael Lewellen. Lewellen sought a declaratory decision from the court that the software it developed, Pharos, which was used to donate money to charitable crowdfunding activities, would not be prosecuted for violating money transmission laws. Chief U.S. District Judge Reed O'Connor dismissed the case on Wednesday, holding Lewellen had failed to establish a credible and imminent threat of prosecution. "I am disappointed that the court rejected my lawsuit today," Lewellen said on the X platform. In its rejection, the court also cited a memorandum from the U.S. Department of Justice that said the department would no longer prosecute virtual currency exchanges, hybrid currency services or offline wallets for the conduct of their end users or inadvertent violations of regulations. Lewellen added: "A non-binding Justice Department memorandum is no substitute for true legal certainty."