In a significant move to protect innovation in the blockchain space, a bipartisan group of US lawmakers has introduced legislation aimed at preventing the prosecution of software developers who do not have custody or control over others’ crypto assets. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren are sponsoring the Promoting Innovation in Blockchain Development Act, which seeks to clarify the application of federal law to blockchain developers.
Clarifying the Law for Blockchain Developers
The bill specifically addresses Section 1960 of US federal law, which prohibits illegal money transmitting businesses. Under the new legislation, this section would only apply to individuals who have control over others’ digital assets. This clarification is crucial for developers who build neutral technologies and do not act as financial intermediaries, ensuring they can operate without the constant threat of prosecution.
Support from the Crypto Community
Two prominent crypto advocacy organizations, The Blockchain Association and the DeFi Education Fund (DEF), have publicly endorsed the bill. The Blockchain Association described it as a ‘critical step’ to encourage US-based developers, while the DEF highlighted that the legislation could prevent cases similar to those involving Tornado Cash developer Roman Storm and the creators of Samourai Wallet.
“[The bill] makes it clear software developers who do not take custody of or control other people’s money can build neutral technology, here at home, without worrying about being criminally prosecuted as if they are a financial intermediary,” said the DEF.
Impact on Previous Cases
However, the bill’s impact on previously filed cases remains uncertain. Roman Storm was found guilty of running an unlicensed money transmitter business in August 2025, while Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill pleaded guilty to similar charges in July and received prison sentences. Storm’s case is still pending, with the possibility of a retrial for two additional charges.
Parallel Efforts in the Senate
The US Senate is also taking steps to address the issue. In January, Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act, which aims to clarify that developers writing code or maintaining networks are not criminally liable as unlicensed money transmitters. Meanwhile, the Senate is considering a comprehensive digital asset market structure bill sent from the House in July 2025, though it is unclear if the final version will include developer protections.
Looking Forward
The introduction of these bills represents a significant step toward creating a more supportive regulatory environment for blockchain developers in the United States. If passed, these measures could foster innovation and attract more talent to the US crypto ecosystem. However, the bills face opposition from some lawmakers, and their ultimate success will depend on the broader political landscape and the ability of advocates to build a strong case for the importance of these protections.
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