A bipartisan bill aims to clarify legal protections for blockchain developers, preventing criminal prosecutions for those not custodians of others' crypto
Legislation Introduced to Protect Blockchain Developers
A bipartisan group of U.S. House representatives has introduced a bill aimed at providing legal clarity for software developers working in blockchain technology. The legislation, named the Promoting Innovation in Blockchain Development Act, seeks to prevent criminal prosecutions against developers who do not have custody or control over others' cryptocurrency assets.
Clarification on Legal Provisions
The proposed bill would amend Section 1960 of U.S. federal law, which currently prohibits the operation of unlicensed money transmitting businesses. It specifically excludes software developers from being classified as financial intermediaries if they do not take custody or control of other people's digital assets.
Support from Advocacy Groups
Both the Blockchain Association and the DeFi Education Fund have endorsed this legislation. The Blockchain Association described it as a "critical step" to encourage U.S.-based blockchain development, while the DeFi Education Fund emphasized its potential impact on preventing similar prosecutions to those of Tornado Cash developer Roman Storm or Samourai Wallet founders Keonne Rodriguez and Will Lonergan Hill.
Previous Prosecutions and Uncertainty
Roman Storm was found guilty of running an unlicensed money transmitter business in August 2025, while Rodriguez and Hill were sentenced to five and four years in prison respectively for similar charges. As of the bill's introduction on Thursday, Storm had yet to be sentenced or face a possible retrial.
Senate's Response
The U.S. Senate has also taken steps towards providing legal protection for developers. In January, Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act (BRACA), which aims to clarify that writing code or maintaining networks does not constitute criminal liability as an unlicensed money transmitter.
Ongoing Legislative Efforts
Meanwhile, lawmakers are considering how to move forward with a comprehensive digital asset market structure bill from the House. The CLARITY Act passed the Senate Agriculture Committee in January but remains pending further action by the Senate Banking Committee. There is uncertainty regarding whether this final bill will include provisions addressing developer protections, which have faced opposition from some lawmakers.
Conclusion
The introduction of these bills signifies a growing recognition within Congress of the importance of legal clarity for blockchain developers. However, their ultimate impact and effectiveness remain to be seen as they continue through the legislative process.
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