For years, blockchain developers have urged U.S. courts to provide clearer ex ante guidance on when writing or deploying decentralized software crosses the line into regulated financial activity. A March 26, 2026 decision by Chief Judge Reed O’Connor of the Northern District of Texas underscores just how difficult that path remains. Case Background The plaintiff, blockchain developer Michael Lewellen, sued the Department of Justice (DOJ) seeking declaratory relief that his Ethereum‑based crowdfunding tool, “Pharos,” did…

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