Crypto Policy Turning Point: Blockchain Devs Could Gain Legal Shield

A new bill introduced in the US House of Representatives is aimed squarely at closing that gap.

Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren announced Thursday that they are sponsoring the Promoting Innovation in Blockchain Development Act.

The legislation targets a specific section of federal law — Section 1960 — which currently prohibits the operation of unlicensed money transmitting businesses.

The bill would tighten the definition so that the law applies only to those who actually hold or control other people’s digital assets. Developers who write code, maintain networks, or build platforms without ever touching user funds would be explicitly excluded from that category.

The bill drew quick support from two prominent crypto advocacy groups. The Blockchain Association called it a critical step toward encouraging more US-based developers to build at home rather than abroad.

Both organizations have long argued that existing law has been applied too broadly against developers who had no direct role in how their tools were used.

The urgency behind this bill is not theoretical. Reports say the cases of Tornado Cash developer Roman Storm and the founders of Samourai Wallet have become rallying points for the crypto developer community.

Storm was convicted in August 2025 on charges of running an unlicensed money transmitting business — a verdict that sent shockwaves through the industry.

In both cases, the developers built tools used by others to transfer funds, but did not themselves hold or manage those assets.

Storm had yet to be sentenced as of Thursday and still faces unresolved charges tied to two separate counts.

Whether the new legislation, if it becomes law, would have any bearing on cases already filed remains an open question. The bill appears to be written with future prosecutions in mind rather than those already underway.

Featured image from Unsplash, chart from TradingView