House Lawmakers Introduce Bill to Shield Blockchain Developers from Prosecution

[tradelikepro]

A bipartisan group in the US House has introduced the Promoting Innovation in Blockchain Development Act, aiming to halt criminal prosecutions of software developers who do not control or custody users’ crypto assets. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren said the bill would clarify that Section 1960 of federal law — which governs illegal money transmitting businesses — should apply only to actors who actually control digital funds.

Crypto advocacy groups quickly voiced support. The Blockchain Association called the measure a “critical step” for US innovation, while the DeFi Education Fund said it would protect developers building neutral tools. Supporters argue the legislation would prevent cases where open-source developers are treated as financial intermediaries despite having no custody over user assets.

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section 1960 really said congrats on your github repo you’re a money transmitter now