In a bid to safeguard the interests of blockchain developers, a bipartisan group of US lawmakers is pushing forward with new legislation. The proposed Promoting Innovation in Blockchain Development Act aims to prevent the prosecution of software developers who do not have control over others’ cryptocurrency assets. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren announced their sponsorship of this bill on Thursday, with the intention of revising how criminal cases involving blockchain developers are managed.
The proposed legislation seeks to amend Section 1960 of US federal law, which currently addresses the prohibition of illegal money transmitting businesses. The bill aims to ensure that the law applies only to entities with control over other people's digital assets, thus excluding developers who merely write code.
Support for the bill has already been expressed by several crypto advocacy groups. The Blockchain Association has labeled it a "critical step" to foster innovation among US developers. Meanwhile, the DeFi Education Fund (DEF) believes the legislation could prevent prosecutions similar to those faced by Tornado Cash developer Roman Storm and the creators of Samourai Wallet. "The bill clarifies that developers building technology without managing others' money are not to be treated as financial intermediaries," stated DEF.
Despite the potential changes, it remains uncertain if the new law would impact ongoing cases against developers. Roman Storm was convicted in August 2025 for operating an unlicensed money transfer business, while Samourai Wallet's Keonne Rodriguez and Will Lonergan Hill have already pled guilty to similar charges, receiving sentences of five and four years, respectively.
Meanwhile, the US Senate is also considering legislation aimed at protecting developers. Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act in January to clarify that developers involved in coding or maintaining networks should not be deemed as unlicensed money transmitters.
The Senate is also examining a broader digital asset market structure bill, which was introduced by the House in July 2025. Although the CLARITY Act has passed the Senate Agriculture Committee, it awaits further discussion in the Senate Banking Committee. The outcome of this bill could significantly impact developer protections, amid some resistance from lawmakers.
The legislative efforts underscore a growing recognition of the need to balance innovation in the blockchain sector with regulatory oversight. As policymakers continue to debate, the future legal landscape for developers remains uncertain.