A Texas judge rejected a crypto developer's request for an exemption from money transfer laws for its software.

PANews reported on March 26 that, according to Cointelegraph, a Texas court dismissed a lawsuit filed by crypto developer Michael Lewellen. Lewellen sought a declaratory judgment that his software, Pharos (used to donate to charitable crowdfunding campaigns), would not be prosecuted for violating money transmission laws. U.S. Chief District Judge Reed O'Connor dismissed the case on Wednesday, finding that Lewellen failed to demonstrate a credible and imminent threat of prosecution.

Lewellen stated on the X platform, "I am disappointed that the court dismissed my lawsuit today." In its dismissal opinion, the court also cited a memorandum from the U.S. Department of Justice stating that the Department will no longer prosecute cryptocurrency exchanges, mixing services, or offline wallets for violations of regulations by their end-users' actions or unintentional breaches. Lewellen added, "A non-binding Department of Justice memorandum cannot replace genuine legal certainty."