Legislation aimed at protecting software developers from prosecution over cryptocurrency management has been introduced by a bipartisan group in the US House of Representatives. The proposed law, known as the Promoting Innovation in Blockchain Development Act, seeks to redefine the scope of Section 1960 of federal law, which addresses illegal money transmitting businesses, to only apply to those with direct control over others' digital assets.
Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren announced their sponsorship of the bill on Thursday, highlighting its importance for fostering a safer environment for US-based developers. The Blockchain Association and the DeFi Education Fund have both voiced support for the initiative, suggesting it could end prosecutions like those of Tornado Cash developer Roman Storm and the creators of Samourai Wallet.
The implications of the bill on existing legal cases remain uncertain. Storm was convicted in August 2025, while others involved with Samourai Wallet received prison sentences earlier this year. In tandem, the US Senate is working on its own protective legislation, the Blockchain Regulatory Certainty Act, introduced by Senators Cynthia Lummis and Ron Wyden, which aims to further clarify the legal status of blockchain developers.