Dear Speaker Sexton,
Thank you for taking the time to visit the Bitcoin Veterans Summit 2025. Your presence and willingness to engage with our community on these critical issues demonstrates the kind of forward-thinking leadership Tennessee needs as we navigate the challenges of our digital age.
As you noted during your remarks, Tennessee is now the number one state for federalism in the nation—the most prepared state for the federal government to be out of our lives. This is not merely a ranking to celebrate; it is a call to action. I wanted to follow up on our discussion regarding digital privacy, particularly the case that exemplifies why states must exercise their sovereignty to protect their citizens from federal overreach: United States v. Rodriguez and Hill (Case No. 1:24-cr-00082, S.D.N.Y.).
The Samourai Wallet Case: When Code Becomes Criminal
In April 2024, the U.S. Attorney's Office for the Southern District of New York arrested Keonne Rodriguez, 36, of Harmony, Pennsylvania, and William Lonergan Hill, 67, a U.S. national residing abroad who was detained in Portugal and extradited to the United States. Their alleged crime? Developing Samourai Wallet, a privacy-focused Bitcoin wallet software.
The developers were initially charged with:
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Money laundering conspiracy
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Conspiracy to operate an unlicensed money transmitting business
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Wire fraud
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Computer fraud
In July 2025, Rodriguez and Hill pleaded guilty to a single count: conspiracy to operate an unlicensed money transmitting business knowing the business transmitted crime proceeds. As part of their plea agreement, they agreed to forfeit $6.4m. On November 6, 2025, Keonne Rodriguez received the maximum sentence: 60 months (5 years) in federal prison. William Lonergan Hill awaits sentencing on November 19, 2025, with prosecutors seeking the same five-year maximum term.
Think about that for a moment. Two software developers, writing code, face the same prison time as violent criminals—not for committing financial crimes themselves, but for creating tools that enable people to exercise their human right to privacy in the digital domain, just as they could with cash in the physical space.
During your visit, I recall you mentioned California's push to hold software developers liable for how users employ their applications—blaming the software itself rather than the criminal actors. You warned that Tennessee must not follow that path. The Samourai Wallet case is exactly that—but at the federal level. This is the federal overreach that Tennessee, as the nation's leader in federalism, is uniquely positioned to resist.
Privacy Is a Human Right and State Sovereignty Is the Path Forward
Speaker Sexton, as you mentioned on stage, privacy is fundamental to human dignity and freedom. It should already be protected by the First and Fourth Amendments, yet the federal government has taken extraordinary liberties in eroding the privacy of average citizens. The Samourai Wallet case demonstrates how far this erosion has gone.
Tennessee has an opportunity—and I would argue an obligation—to lead by enshrining digital privacy as a constitutional right at the state level.
Code Is Speech: Legal Precedent Already Exists
In Bernstein v. U.S. Department of Justice (1995–1999), federal courts established that code is speech and therefore protected under the First Amendment. This precedent should protect software developers like Rodriguez and Hill, yet here we are, watching them receive maximum sentences for writing software.
Every state in the U.S. should pass constitutional amendments or legislation that explicitly protect free and open-source code under the First Amendment. Additionally, developers of infrastructure and non-custodial tooling must be protected from legal liability or persecution for how others use their tools.
Do we prosecute gun manufacturers when someone commits a crime with their product? Do we imprison the creators of encryption standards when criminals use encrypted communications? The answer has always been no—until now, when it comes to financial privacy tools.
The 5th Generation War: Everyone Is on the Battlefield
In 5th Generation Warfare, the battlefield is everywhere, and everyone is a potential target—whether they recognize it or not. We must enable every citizen of this country to defend themselves in cyberspace.
Unlike the Second Amendment, this cyber defense requires no kinetic projection of force. In fact, no amount of kinetic force can break the mathematics of cryptography. This is defense in its purest form—protection that cannot be overcome by violence, only by voluntary disclosure.
When I attended a CTTSO (Combat Terrorism Technology Support Office) course on cyber operations in mid-2010's, the lead instructor—a retired Green Beret—told a room full of three-letter agency leaders and DoD personnel that we were losing the cyber war against our peer nations. It seemed true then based on my assessment of force readiness and peer capabilities. As my career has advanced and my knowledge has grown, it has become increasingly apparent that free and open-source software development is how we as a people, and humanity as a whole, can secure a bright future—for the United States, even as we balkanize, and for the rest of the world.
Bitcoin is the monetary layer, but there is so much more to this movement. It represents a philosophical alignment with American values—voluntary participation, individual sovereignty, and freedom from centralized control.
Financial Surveillance Has Been Weaponized
Financial surveillance is no longer a tool reserved for catching terrorists and drug lords. It has been weaponized against people of all classes. President Trump himself suffered under financial lawfare. I only see this increasing as more power consolidates at the federal level.
The Biden administration fundamentally undermined our financial dominance when it kicked Russia out of SWIFT. That single action told the world that the U.S. dollar and its associated payment systems are weapons that can be wielded for political purposes. The consequences of that decision will reverberate for decades.
In our modern digital age, the Bank Secrecy Act is a gross overreach of federal power. Bitcoin can be handled like cash was before people stopped carrying it around. Cash is private. Bitcoin can be private too.
Much like guns and the Second Amendment, if you ban privacy tools, criminals will be the only ones able to use them. This means mass casualties in the current 5th Generation War we find ourselves in—casualties measured not in body counts but in destroyed lives, frozen accounts, and financial persecution.
Tennessee: The Volunteer State and Voluntary Money
My late stepfather enjoyed the benefits of a thriving cash business and utilized the privacy it offered to his advantage. Tennessee should enshrine the right to financial privacy in our digital age so all its citizens can enjoy the benefits of electronic cash on the internet without exposing themselves to the battlefield of 5th Generation Warfare.
To quote Eric Hughes from A Cypherpunk's Manifesto: "Privacy is the power to selectively reveal oneself to the world." This quote reads to me like voluntary revelation—you choose what to share and when. Tennessee is the Volunteer State. Bitcoin is voluntary. The philosophical alignment is natural.
In my observations, Bitcoin's moral and philosophical values largely align with Christian and conservative values: hard work, honest money, personal responsibility, and freedom from centralized control.
Open Source Software Enables Disaster Recovery
Open-source software is what enabled disaster recovery after Hurricane Helene devastated parts of our country and Tennessee. Protecting those doing the critical and often voluntary job of maintaining these software projects means that Tennessee directly benefits from protecting these developers.
Bitcoin Veterans utilized the Meshtastic open source project in the disaster recovery. Devices were distributed to people on the ground in the disaster area and they were able to communicate up and out. We were even able to get these devices onto Tennessee and North Carolina National Guard helicopters, greatly extending the range and capabilities of these small but robust free and open source devices. This open source communications platform enabled responders and local residents to communicate well before any modern infrastructure could be reestablished.
When developers face federal prosecution for building tools, the entire open-source ecosystem suffers. Talented developers flee to other countries with more favorable legal climates. Innovation slows. Preparedness as a country shrinks.
State Sovereignty in the Digital Age: An Attainable Goal
The reassertion of state sovereignty is not some distant dream—it is an attainable goal within our lifetimes. Different states are already taking divergent approaches to technology, privacy, and digital rights. Tennessee, as the nation's leader in federalism, must lead the way on the digital front by enshrining digital privacy into law.
During your remarks, you mentioned the opportunity for Republican states to coordinate on issues like privacy—to come together, pass the same policies, and set a unified standard that becomes much harder to undo. This is exactly the kind of interstate cooperation that can restore the balance of power between states and an overreaching federal government.
Without states exercising their sovereignty to protect their citizens, we will continue to watch federal agencies prosecute software developers, freeze bank accounts for political purposes, and erode the rights that should be protected by our Constitution. We need state-level constitutional protections that establish:
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Code is speech and is protected under the First Amendment
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Developers of non-custodial tools cannot be held liable for how users employ their software
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Financial privacy is a fundamental right in the digital age
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The right to use privacy-enhancing technologies without fear of prosecution
A Call for Pardons and Legislative Action
Speaker Sexton, I urge you to consider two parallel paths:
First, I respectfully ask that you use your position as Speaker of the House in Tennessee to directly petition President Trump for pardons for Keonne Rodriguez and William Lonergan Hill. These men are not money launderers—they are software developers who built a tool. They are casualties in a war on privacy that threatens every American's digital rights. Your voice as a state legislative leader carries significant weight, and President Trump has shown willingness to pardon those who have been unjustly targeted by federal overreach.
Second, Tennessee should pass legislation—ideally a constitutional amendment—that explicitly protects digital privacy rights and shields software developers from prosecution for building privacy-enhancing tools. Make Tennessee a haven for the kind of innovation that will define the 21st century.
The majority of Bitcoin is owned by U.S. citizens. This is American innovation, American capital, and American freedom at stake. Tennessee can lead, or Tennessee can follow. I would prefer the Volunteer State leading.
Conclusion
Privacy is not about hiding criminal activity. It is about maintaining human dignity in an age of total surveillance. It is about preserving the American tradition of financial independence. It is about ensuring that every citizen has the tools to defend themselves in the 5th Generation War we are currently fighting.
Tennessee has always been a state that values freedom, volunteer action, and individual rights. As the number one state for federalism, Tennessee is not just prepared to be free from federal overreach—it is obligated to lead the way in protecting its citizens from it. State sovereignty in the digital age is within reach, and Tennessee should be the first to grasp it.
You noted during your visit that Tennessee wants the federal government "out of our lives." The Rodriguez and Hill prosecutions are precisely the kind of federal interference we must resist. By protecting digital privacy and software developers at the state level, Tennessee can demonstrate that federalism is not just a ranking—it is a governing philosophy that delivers real protection to real people.
As a Naval intelligence veteran who spent time in our nation's premier units, I have a unique perspective on the world that sees a critical need for digital privacy to ensure the nation I volunteered to defend—even at the cost of my life—is protected. I did not serve to watch that nation criminalize software developers or erode the very freedoms I swore to protect. Furthermore, I see Bitcoin and digital privacy as tools that will help spread true American values around the world. Most importantly, these values are aligned with Christ. This is not merely a political issue; it is a moral imperative.
Thank you again for your time at the Bitcoin Veterans Summit. I look forward to continuing this conversation and working together to make Tennessee not just a leader in digital privacy rights, but a model of state sovereignty for the entire nation.
Respectfully,
Gary R Krause
Chief Petty Officer of Bitcoin Veterans
Bitcoin Veterans Summit 2025
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"Privacy is the ability to selectively reveal yourself." — Eric Hughes, A Cypherpunk's Manifesto
"The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated." — Fourth Amendment, U.S. Constitution
