On Thursday, February 26, 2026, a bipartisan group of U.S. lawmakers introduced the Promoting Innovation in Blockchain Development Act, a significant legislative step aimed at protecting software developers from being prosecuted under money laundering statutes when they do not have custody or control of users' crypto assets.
The bill specifically seeks to clarify that Section 1960 of the U.S. federal criminal code, which prohibits illegal money transmitting businesses, should apply only to actors who have control over others' digital assets. This move is designed to create a legal safe harbor for open-source developers working in good faith, addressing what has been described as a "legal gray zone" that has chilled American competitiveness in blockchain innovation.
The legislation is sponsored by Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren in the House. It arrives amid ongoing prosecutions of developers, including Roman Storm, the developer behind Tornado Cash who was found guilty in August 2025, and the founders of Samourai Wallet, Keonne Rodriguez and Will Lonergan Hill, who pleaded guilty to similar charges in July 2025 and received prison sentences of five and four years respectively.
The bill has received public support from major crypto advocacy groups. The Blockchain Association called it a "critical step" to encourage U.S.-based developers, while the DeFi Education Fund (DEF) stated it would likely prevent future prosecutions similar to those against Storm and the Samourai Wallet creators. "[The bill] makes it clear software developers who do not take custody of or control other people's money can build neutral technology, here at home, without worrying about being criminally prosecuted as if they are a financial intermediary," said DEF.
This House bill follows similar efforts in the Senate, where Senators Cynthia Lummis and Ron Wyden introduced the Blockchain Regulatory Certainty Act in January 2026 with the same goal of clarifying that developers writing code or maintaining networks should not be criminally liable as unlicensed money transmitters.
The legislative push occurs against a backdrop of a shifting regulatory posture under SEC Chairman Paul Atkins, with the Commission reportedly moving from a stance defined primarily by enforcement toward one focused on engagement, clarity, and constructive rulemaking. The news article highlights that developers and market participants are seeking "rules that are understandable, durable and aligned with how modern technology actually functions."
The article frames this development as part of a broader competition for technological leadership, noting that Solana was the leading ecosystem for new developers in 2024, growing 84% year-over-year according to the Electric Capital Developer Report. The underlying argument is that clear regulatory frameworks are essential for the United States to retain developer talent and remain competitive in building the next generation of digital financial infrastructure, often termed "internet capital markets."
