U.S. Lawmakers Rescue Blockchain Developers from the Legal Abyss

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Key Highlights

  • Three U.S. lawmakers propose a bill to shield blockchain developers from charges.
  • The bill makes it crystal clear: if you code software, you’re not a criminal-just don’t touch anyone’s money.

In a heroic move, Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren have joined forces to introduce a bill that will protect blockchain developers from the scary depths of criminal liability. Their new legislation aims to clarify the confusion over whether someone who writes code should be treated like a nefarious financial mastermind.

According to an insightful post by journalist Eleanor Terrett on X, the bill-charmingly titled the Promoting Innovation in Blockchain Development Act of 2026-picks apart Section 1960, a U.S. criminal rule originally concocted to go after those who deal with money, not mere coders.

🚨JUST IN: @RepFitzgerald (R-WI), @RepBenCline (R-VA) and @RepZoeLofgren (D-CA) have just introduced the bipartisan Promoting Innovation in Blockchain Development Act of 2026, aimed at protecting software developers from being prosecuted under criminal code Section 1960.

The…

– Eleanor Terrett (@EleanorTerrett) February 26, 2026

Shielding Developers from Overzealous Legal Repercussions

Section 1960 was originally drafted with a singular goal in mind: to regulate platforms holding or managing user funds, like crypto exchanges and payment services. This bill makes it abundantly clear that developers, who just write code and not cash-carrying platforms, are not the targets of this law.

Given the recent unfortunate arrests of blockchain developers like Keonne, the founder of Samourai Wallet, and Roman Storm, the Tornado Cash developer, this bill is seen as a much-needed breath of fresh air. Keonne spent time in prison for doing nothing more than writing code, while Storm was found guilty of conspiracy for his software’s role in crypto transactions.

The developers and their supporters have long argued that coding is far removed from handling money. Coding software shouldn’t be akin to running a bank, yet here we are. With this legislation, it’s hoped that developers-especially in the world of DeFi-can continue to write code without fear of falling into the legal quicksand.

More Efforts to Protect the Innocent, Well-Meaning Coders

Earlier this year, Senators Cynthia Lummis and Ron Wyden made their own attempt at defending blockchain developers with the Blockchain Regulatory Certainty Act, introduced in January 2026. Lummis, ever the advocate, rightly pointed out that developers “who have simply written code and maintain open-source infrastructure have lived under threat of being classified as money transmitters for far too long.”

Wyden, meanwhile, delivered a speech that was as memorable as it was accurate: “Forcing developers who write code to follow the same rules as exchanges or brokers is technologically illiterate and a recipe for violating Americans’ privacy and free speech rights.” The Senate is currently working on a broader package of crypto rules, and fingers are crossed that this bill, too, will find its way to approval.

The bill defines “non-controlling developers” as those who craft or maintain blockchain software but have no say in the management or control of user funds. It protects developers who publish software or maintain blockchain networks from unnecessary persecution. Those hoping for a safe space in which to code are hopeful that these bills will finally clear up the fog of confusion surrounding blockchain development.

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2026-02-26 20:36