A bipartisan group in the U.S. House has filed legislation aimed at preventing criminal prosecutions of software developers who do not hold custody or control of other people’s cryptocurrency. Representatives Scott Fitzgerald, Ben Cline and Zoe Lofgren announced they will sponsor the Promoting Innovation in Blockchain Development Act, which seeks to adjust how federal law treats developers in criminal cases.
The bill would clarify that Section 1960 of federal law—the statute addressing the prohibition of illegal money transmitting businesses—applies only to actors who exercise custody or control over others’ digital assets. Supporters say that clarification would distinguish neutral toolmakers from financial intermediaries.
Two crypto advocacy groups publicly backed the proposal. The Blockchain Association called it a “critical step” to encourage developers to stay and build in the U.S., while the DeFi Education Fund (DEF) said the measure would likely prevent prosecutions similar to those of Tornado Cash developer Roman Storm and the creators of the Samourai Wallet. DEF summarized the bill’s intent: software developers who do not take custody of or control other people’s funds can build neutral technology domestically without facing criminal liability as if they were money transmitters.
It is unclear whether a new law would affect already filed or resolved cases. Roman Storm was found guilty in August 2025 of operating an unlicensed money transmitting business and, as of the bill’s announcement, had not yet been sentenced or 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—receiving five and four years in prison, respectively.
Meanwhile, the Senate has introduced a parallel measure. Senators Cynthia Lummis and Ron Wyden unveiled the Blockchain Regulatory Certainty Act in January to explicitly state that writing code or maintaining blockchain networks does not, by itself, meet the legal elements for criminal liability as an unlicensed money transmitter.
The Senate is also considering broader digital-asset legislation. The CLARITY Act, a comprehensive market-structure bill sent from the House in July 2025, passed the Senate Agriculture Committee in January but has not yet been marked up in the Senate Banking Committee. Whether a final Senate bill will include developer protections remains uncertain, with some lawmakers opposing such safeguards.
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