The U.S. Department of Justice (DOJ) has issued a memo titled 'Ending Regulation by Prosecution,' signaling a significant shift in its approach to the digital assets industry. The memo, released by the Deputy Attorney General, states that the DOJ will no longer target virtual currency exchanges, offline wallets, and developers of mixers and wallets for criminal charges related to their operations, unless there is clear evidence of willful non-compliance with licensing requirements. This policy change aims to foster an environment conducive to economic development and innovation within the digital assets sector. The DOJ's decision follows advocacy from the crypto industry, including a letter from a coalition of 30 crypto companies led by fund_defi, urging lawmakers to address the DOJ's previous approach of 'regulation by criminal indictment.' The memo also clarifies that the DOJ will focus on prosecuting actual bad actors involved in activities such as narcotics trafficking and money laundering, rather than pursuing regulatory enforcement through criminal charges against neutral technology providers. This shift is expected to reduce the risk for developers and companies in the digital assets space. ACINQ, the developers of Phoenix Wallet, have announced they will make their products available again in the USA following this memo. Additionally, the DOJ's memo criticized the prosecution of FTX founder Sam Bankman-Fried and noted the impact on investors. The letter to Crypto and AI Czar David Sacks from fund_defi also highlighted concerns about the DOJ's reinterpretation of federal money transmission licensing statutes.