U.S. bipartisan lawmakers introduce blockchain innovation bill to protect non-custodial developers from improper liability

2026-02-26 15:58:07

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Odaily Planet Daily reports that crypto journalist Eleanor Terrett posted on X that U.S. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren jointly introduced the “2026 Blockchain Innovation Promotion Act,” aimed at protecting software developers from criminal liability under Section 1960 of the U.S. Code. The bill clearly states that Section 1960 applies only to institutions controlling customer funds, not to developers who only write code. This distinction has been a key point that the crypto industry—especially DeFi—has been pushing to include in the Clarity Act. Originally, Section 1960 targeted institutions that transfer custody of funds, but recent cases (such as Tornado Cash and Samourai Wallet) have applied it to non-custodial software developers who do not control user funds, causing conflicts between crypto builders and regulators.

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