Blockchain technology developers in the United States could gain key legal protection if a bill introduced by representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren moves forward.
The initiative, known as the Promoting Innovation in Blockchain Development Act of 2026, proposes amending Section 1960 of Title 18 of the United States Code to limit when criminal liability applies for operating an unlicensed money transmission business.
The text would explicitly exclude software developers, open-source contributors, and protocol maintainers from being classified as money transmitters solely for writing, publishing, or maintaining blockchain code. The proposal establishes that criminal liability would only fall on entities that exercise effective control over user funds, drawing a clear line between custodial financial intermediaries and software developers with no operational control.
The initiative emerges directly as a response to the judicial prosecutions linked to the developers of Tornado Cash and Samourai Wallet, cases that sparked an intense debate over whether enforcement actions had moved beyond custodians to target the publication of code.
Blockchain Association and DeFi Education Fund publicly endorsed the measure, describing it as essential for maintaining U.S. competitiveness in blockchain innovation. Its progress will depend on negotiations in Congress.
Source: https://x.com/EleanorTerrett/status/2027046039903977877
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