In a rare display of bipartisan unity, Senators Cynthia Lummis and Ron Wyden have joined forces to urge the Department of Justice (DOJ) to rethink its approach to Bitcoin privacy software.

Their letter expresses concern over the recent enforcement action against Samourai Wallet, a Bitcoin privacy service, and warns that the DOJ's interpretation of "money services business" could criminalize Americans offering non-custodial crypto asset software services.

The senators argue that the DOJ's stance contradicts Treasury Department guidance and Congressional intent, potentially stifling innovation and undermining confidence in the DOJ's respect for the rule of law.

They contend that the definition of "money transmission" should be clear and specific, excluding entities like internet service providers and postal code carriers, as well as crypto wallets where users maintain control of their private keys.

The DOJ's interpretation, which likens money transmission to a USB cable or frying pan, has raised concerns among crypto users and service providers.

The senators' letter highlights the ongoing debate over crypto asset regulation and the need for clear definitions to avoid stifling innovation.

As the DOJ continues to scrutinize crypto services, its interpretation of money transmission will have significant implications for the crypto industry.