A bipartisan proposal, the 'Promoting Innovation in Blockchain Development Act of 2026,' has been introduced by lawmakers to shield software developers from criminal liability under federal money transmission laws. The bill aims to clarify that existing statutes target entities with custody over user funds, not programmers who maintain open-source code.
This legislation addresses concerns arising from recent prosecutions of decentralized finance (DeFi) tools. Proponents argue that current laws, designed for traditional financial intermediaries, are being misapplied to decentralized protocols. The bill follows high-profile cases, including the prosecution of Tornado Cash co-founders and the conviction of developer Alexey Pertsev, which have intensified debate over coder liability.
Industry advocates point to cases like the Samourai Wallet prosecution, where the distribution of software raised questions about whether it constitutes operating a custody operation. This new act seeks to provide much-needed clarity for innovation in the blockchain space.