On February 28, U.S. lawmakers from both parties jointly introduced the “Promoting Innovation in Blockchain Development Act” on February 26, aiming to clarify the legal responsibilities of blockchain developers and prevent open-source code authors from being mistakenly classified as remittance institutions. The proposal, led by Scott Fitzgerald, Ben Cline, and Zoe Lofgren, focuses on amending Section 1960 of the U.S. Code to target custodians who control customer assets or execute transfers on behalf of users.
The bill suggests that, amid rising debates over whether “open-source software developers should bear remittance licensing responsibilities” and “legal risks for non-custodial blockchain developers,” clear exemptions should be provided for entities that only write or distribute code. The ongoing lawsuits related to Tornado Cash have further amplified industry concerns about “code as crime.” Ben Cline noted that long-term regulatory expansion blurs the line between malicious actors and technological innovators; Scott Fitzgerald also emphasized that innovators should not face undue law enforcement pressure for developing infrastructure.
Industry support has come from the Solana Institute and the Blockchain Association, which believe the bill will help establish a clear framework distinguishing “open-source developers from custodial financial intermediaries.” Meanwhile, discussions in Washington also include topics like the CLARITY Act and the GENIUS Act. The former, passed by the House in 2025 but with slowed progress, aims to clarify regulations, while the latter enhances stablecoin oversight without expanding developer responsibilities.
Analysts believe that if enacted, the “Promoting Innovation in Blockchain Development Act” will set a precedent for reshaping the U.S. crypto regulatory framework and defining blockchain developers’ compliance boundaries. Ongoing lobbying efforts continue, and the specific wording and scope of the Section 1960 amendments could be a key factor influencing U.S. crypto policy in 2026.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
House Pushes Back on Senate’s 2030 CBDC Ban Expiry
United States Congress is debating a CBDC ban after lawmakers challenged the Senate’s 2030 expiration clause.
Ted Cruz proposed an amendment to remove the sunset clause and make the CBDC prohibition permanent.
House lawmakers oppose the temporary ban, warning it could allow a future U.S.
CryptoFrontNews1h ago
U.S. Treasury Report Proposes AML rules for DeFi Sector
U.S. Department of the Treasury recommended AML and counter-terror financing rules for DeFi platforms.
The report proposes a digital asset “hold law” allowing institutions to freeze suspicious crypto funds during
CryptoFrontNews2h ago
U.S. financial regulators bypass Basel Accords to promote the development of tokenized securities, with several major financial institutions launching pilot programs
The U.S. financial regulatory agencies led by Trump are bypassing the Basel Accords to promote the development of tokenized securities, believing that technology-neutral regulatory strategies should be provided. Several financial institutions have taken this opportunity to initiate related pilot projects.
GateNews3h ago
South African Economist Flags Authoritarian Risks in CBDCs
Economist Dawie Roodt has issued a warning that central bank digital currencies could become tools for authoritarian control due to their “programmable” nature.
The Authoritarian Risk
South African economist Dawie Roodt warned that central bank digital currencies, or CBDCs, could become
Coinpedia5h ago
People's Bank of China Governor Pan Gongsheng: Maintain high-pressure efforts to crack down on illegal financial activities such as virtual currency speculation
People's Bank of China Governor Pan Gongsheng stated at the National People's Congress that over the past year, China's financial risks have been effectively controlled, and the financial market has operated stably. In the future, efforts will continue to crack down on illegal financial activities, maintain financial stability, assess the impact of external shocks, and implement policy measures to manage risks.
GateNews7h ago
Hong Kong Legislative Council Chairman Calls for Cautious Development of Stablecoins and Virtual Assets, Emphasizing the Need to Regulate AI Oversight
Hong Kong Legislative Council Chairman Regina Ip stated that she will support the development of the first five-year plan and proposed recommendations for financial and technological development. Hong Kong's National People's Congress delegate Chan Zhenying emphasized the need for cautious development of emerging financial products and regulation of AI usage to ensure financial security. Wu Jiezhuang mentioned that Hong Kong should leverage its advantages, consolidate its status as an international financial center, and promote technological innovation.
GateNews9h ago
