New Bill Introduced to Protect Blockchain Developers from Liability
- Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren introduced the Promoting Innovation in Blockchain Development Act of 2026.
- The bill seeks to narrow the scope of 18 U.S.C. Section 1960, focusing on entities with custody over user funds rather than developers of open-source code.
- The proposal comes amid debates over the Clarity Act and broader digital-asset legislation affecting DeFi developers.
- The legislation responds to high-profile cases like Tornado Cash, where co-founders were charged for operating an unlicensed money transmitting business.
- Dutch authorities sentenced Alexey Pertsev to over five years for laundering offenses related to Tornado Cash in May 2024.
The new bipartisan bill aims to protect blockchain developers by clarifying federal money transmission laws, addressing issues highlighted by recent prosecutions involving decentralized protocols like Tornado Cash.
Source (3.2)https://cryptobriefing.com/crypto-developer-protection-bill/?rand=59535
