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Legislation that would provide a “legal shield” for blockchain developers who faced criminal prosecution simply for writing code has entered full-scale discussion in the U.S. Congress.
According to cryptocurrency-focused media outlet Bitcoinist on February 28 (local time), the “Promoting Innovation in Blockchain Development Act” has been introduced in the U.S. House of Representatives. The core of the bill is to clarify the scope of application of federal statute Section 1960, which prohibits the operation of unlicensed money transmitting businesses, so that developers who do not actually custody or control others’ digital assets would be excluded from criminal penalties.
Co-sponsors Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren stated that the goal is to correct situations in which individuals are criminally prosecuted as money transmitters merely for writing code or maintaining a network. The Blockchain Association evaluated the legislation as a potential turning point that could encourage developers to continue building in the United States rather than relocating overseas. The DeFi Education Fund also emphasized that developers of neutral technology should not be treated as financial intermediaries simply for creating such tools.
The legislative push follows actual prosecutions. Tornado Cash developer Roman Storm was found guilty in August 2025 on charges of operating an unlicensed money transmitting business. Samurai Wallet co-founders Keonne Rodriguez and William Lonergan Hill received prison sentences of five and four years, respectively, on similar charges. Although they did not directly custody customer funds, they were punished because the tools they developed were used to facilitate fund transfers.
While it remains unclear whether the House bill would apply retroactively to previously filed cases, it is primarily aimed at preventing similar prosecutions in the future. In the Senate, Cynthia Lummis and Ron Wyden introduced the “Blockchain Regulatory Certainty Act” in January, asserting that merely writing code or operating a network should not qualify someone as a money transmitter under federal law.
If enacted, the legislation is expected to reduce legal uncertainty for developers and protocol operators and bring meaningful changes to the U.S. blockchain industry environment. However, whether the bill will ultimately pass and the details of its application will be determined through further congressional deliberations.
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