A bipartisan coalition in the U.S. House introduced the Promoting Innovation in Blockchain Development Act on February 26. The bill aims to shield open-source blockchain developers from being prosecuted as money transmitters, clarifying liability under existing law. Early reactions from major industry groups have been supportive, viewing it as a critical protection for software innovators.
A bipartisan group of U.S. lawmakers introduced the Promoting Innovation in Blockchain Development Act. The proposal seeks to clarify legal liability for blockchain software developers.
The bill is led by Congressmen Scott Fitzgerald, Ben Cline, and Zoe Lofgren. It arrives amid heightened regulatory scrutiny and prosecutions involving decentralized infrastructure like Tornado Cash.
The legislation would amend Section 1960 of the U.S. Code, a statute originally targeting money laundering. It aims to limit liability to entities that control customer assets or execute transfers, not those who merely publish code.
Congressman Ben Cline emphasized the issue, stating, “For too long, federal overreach has blurred the line between bad actors and the innovators building next-generation technology.” Representative Fitzgerald had previously expressed concern about aggressive regulatory approaches targeting developers.
Industry stakeholders quickly rallied behind the proposed law. The Solana Institute publicly responded with gratitude for the representatives championing developers.
The Blockchain Association also endorsed the bill through its CEO. This indicates coordinated industry approval for establishing clear legal boundaries.
This initiative is part of a broader shift in U.S. crypto legislation. It coincides with other debated bills like the Blockchain Regulatory Certainty Act and the CLARITY Act.
Advocacy groups have intensified lobbying in the Senate as these frameworks evolve. The regulatory outcome presents a pivotal test for America’s stance on cryptocurrency innovation.
