Crypto Policy Turning Point: Blockchain Devs Could Gain Legal Shield

bitcoinistPublished on 2026-02-28Last updated on 2026-02-28

Abstract

A new bipartisan bill, the Promoting Innovation in Blockchain Development Act, has been introduced in the US House of Representatives to protect blockchain developers from being prosecuted as unlicensed money transmitters. The legislation (targeting Section 1960) would narrow the legal definition to apply only to those who actually hold or control users' digital assets—not developers who write code, maintain networks, or build platforms without handling funds. The push follows high-profile prosecutions, including the conviction of Tornado Cash developer Roman Storm and guilty pleas from Samourai Wallet founders. Crypto advocacy groups support the bill, arguing it will encourage U.S.-based innovation and protect neutral technology builders from being treated as financial intermediaries. A similar Senate bill was also introduced earlier this year.

Building software has never been against the law. But in recent years, some crypto and blockchain developers have found themselves facing federal criminal charges simply for creating tools that others used to move cryptocurrency — even when those developers never held a single dollar of anyone’s money.

A new bill introduced in the US House of Representatives is aimed squarely at closing that gap.

A Bipartisan Push To Protect Developers

Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren announced Thursday that they are sponsoring the Promoting Innovation in Blockchain Development Act.

The legislation targets a specific section of federal law — Section 1960 — which currently prohibits the operation of unlicensed money transmitting businesses.

The bill would tighten the definition so that the law applies only to those who actually hold or control other people’s digital assets. Developers who write code, maintain networks, or build platforms without ever touching user funds would be explicitly excluded from that category.

New bipartisan bill protects US software developers from unfair criminal prosecution@RepFitzgerald, @RepBenCline, @RepZoeLofgren introduced ‘Promoting Innovation in Blockchain Development Act of 2026’ to protect engineers—who write code but do not control other people’s... pic.twitter.com/NCO3UTgVjC

— DeFi Education Fund (@fund_defi) February 26, 2026

The bill drew quick support from two prominent crypto advocacy groups. The Blockchain Association called it a critical step toward encouraging more US-based developers to build at home rather than abroad.

The DeFi Education Fund (DEF) went further, saying the legislation would allow software builders to “construct neutral technology here at home without worrying about being criminally prosecuted as if they are a financial intermediary.”

We applaud the bipartisan Promoting Innovation in Blockchain Development Act of 2026 introduced today by @RepFitzgerald, @RepBenCline, and @RepZoeLofgren. The targeted fixes in this bill will help to strengthen US leadership in the infrastructure of the future by creating a...

— Jump Crypto 🔥💃🏻 (@jump_) February 26, 2026

Both organizations have long argued that existing law has been applied too broadly against developers who had no direct role in how their tools were used.

Real Prosecutions Behind The Push For Change

The urgency behind this bill is not theoretical. Reports say the cases of Tornado Cash developer Roman Storm and the founders of Samourai Wallet have become rallying points for the crypto developer community.

Storm was convicted in August 2025 on charges of running an unlicensed money transmitting business — a verdict that sent shockwaves through the industry.

Samourai Wallet co-founders Keonne Rodriguez and Will Lonergan Hill pleaded guilty to similar charges and were later handed prison sentences of five and four years respectively.

BTCUSD now trading at $65,784. Chart: TradingView

In both cases, the developers built tools used by others to transfer funds, but did not themselves hold or manage those assets.

Storm had yet to be sentenced as of Thursday and still faces unresolved charges tied to two separate counts.

Whether the new legislation, if it becomes law, would have any bearing on cases already filed remains an open question. The bill appears to be written with future prosecutions in mind rather than those already underway.

The Senate Is Already Working On Its Own Version

The House bill does not exist in isolation. Reports say US Senators Cynthia Lummis and Ron Wyden introduced their own developer protection measure in January — the Blockchain Regulatory Certainty Act — which takes a similar position: that writing code or keeping a network running does not make someone a money transmitter under federal law.

Featured image from Unsplash, chart from TradingView

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