A bipartisan group in the U.S. House has introduced legislation designed to prevent criminal charges against software developers who neither hold custody of nor control other people’s cryptocurrency. Representatives Scott Fitzgerald, Ben Cline and Zoe Lofgren are sponsoring the Promoting Innovation in Blockchain Development Act, which would change how federal law treats developers in criminal cases.
The bill aims to clarify that Section 1960 of federal law, the statute that targets illegal money transmitting businesses, applies only to actors who exercise custody or control over other people’s digital assets. Backers say that clarification would distinguish neutral toolmakers and protocol maintainers from financial intermediaries that handle customer funds.
Two crypto advocacy organizations publicly endorsed the proposal. The Blockchain Association called it a critical step to keep talent and development in the U.S., while the DeFi Education Fund said the measure would likely prevent prosecutions like those brought against Tornado Cash developer Roman Storm and the creators of Samourai Wallet. DEF summarized the intent as allowing software developers who do not take custody of or control others’ funds to build neutral technology domestically without being treated as money transmitters.
It is not clear whether the proposed law would affect cases already filed or resolved. Roman Storm was convicted in August 2025 of operating an unlicensed money transmitting business; at the time the bill was announced he had not yet been sentenced and faced potential retrials on other charges. Samourai Wallet co-founders Keonne Rodriguez and Will Lonergan Hill pleaded guilty in July 2025 to related charges and were later sentenced to five and four years in prison, respectively.
A companion measure is pending in the Senate. Senators Cynthia Lummis and Ron Wyden unveiled the Blockchain Regulatory Certainty Act in January to state explicitly that writing code or maintaining blockchain networks alone does not satisfy the elements for criminal liability as an unlicensed money transmitter.
The Senate is also considering wider digital-asset legislation. The CLARITY Act, a comprehensive market-structure bill the House sent in July 2025, cleared the Senate Agriculture Committee in January but has not yet been taken up by the Senate Banking Committee. Whether a final Senate package will include explicit developer protections remains uncertain, and some lawmakers have opposed such safeguards.
Supporters of the House bill say clearer statutory language is needed to protect neutral developers and promote innovation, while critics worry about potential loopholes that could hinder enforcement against bad actors. The outcome will depend on negotiations as the different proposals move through congressional committees.
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