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A bipartisan coalition introduced the Promoting Innovation in Blockchain Development Act on 26 February. It aims to clarify liability for blockchain developers. The proposal, led by Congressmen Scott Fitzgerald, Ben Cline, and Zoe Lofgren, arrived as regulatory pressure intensified around decentralized infrastructure. At the same time, prosecutions involving Tornado Cash amplified concerns about criminalizing open-source software development. The bill, therefore, amends Section 1960 of the U.S Code, a statute originally designed to combat money laundering. However, enforcement trends increasingly extended its scope towards non-custodial developers who only publish or maintain code. Source: X Under the proposal, liability would apply mainly to entities controlling customer assets or executing transfers on users’ behalf. Meanwhile, developers who simply write or distribute open-source software would fall outside prosecutorial reach. Congressman Ben Cline emphasized the issue, stating, “For too long, federal overreach has blurred the line between bad actors and the innovators building next-generation technology.” Similarly, Rep. Scott Fitzgerald had previously stated, “For years, innovators and software developers have been caught in the crosshairs of an aggressive regulatory approach.” Industry stakeholders rally behind developer protection bill Early reactions to the Promoting Innovation in Blockchain Development Act emerged quickly across the blockchain policy ecosystem as the proposal entered public debate. Initial responses focused on the bill’s central premise of protecting non-custodial developers from money-transmitter liability. The Solana Institute responded quickly, emphasizing the importance of developer protections at a critical stage for open-source infrastructure. The organization stated, “We’re grateful to Rep. Fitzgerald, Rep. Ben Cline, and Rep. Zoe Lofgren for championing developers at this critical junction for open-source software development and the crypto ecosystem with the introduction of the Promoting Innovation in Blockchain Development Act.” Source: X Shortly afterwards, broader industry advocacy groups reinforced similar sentiments. The Blockchain Association, for instance, publicly endorsed the legislation through CEO…

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Filed under: News - @ February 28, 2026 3:27 am