Legally Credible Neutrality

This paper introduces and explores the concept of ‘legally credible neutrality’ in the context of information infrastructure services, with a particular focus on public permissionless blockchain networks. Legally credible neutrality refers to the extent to which the law recognizes certain service providers as neutral and refrains from targeting them in relation to user actions. Drawing on examples from intermediary liability laws in the EU and US, as well as the treatment of global financial messaging systems under sanctions regimes, the paper demonstrates how this concept operates across various technological contexts. The paper examines policy considerations to argue that recognizing legally credible neutrality can foster innovation, protect fundamental rights, and maintain the essential characteristics of beneficial services. However, it also acknowledges the challenges this approach poses for law enforcement and regulatory objectives. In the blockchain context, recognizing the neutral role of core infrastructure providers could help preserve the decentralized nature of these networks while still allowing for effective regulation of applications built on top of them.