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
Minnesota considers legislation to ban counterfeit cryptocurrency vending machines
Minnesota is facing issues with scam cryptocurrency vending machines, and law enforcement agencies recommend legislation to ban these devices, while crypto industry stakeholders advocate for increased regulation. The scam machines particularly target low-income seniors, resulting in severe losses for many victims. Although relevant laws have been enacted, their effectiveness is limited, and there are differing opinions among parties on how to prevent scams.
ChainNewsAbmedia1h ago
SEC Chairman Paul Atkins blasts former Gensler: "Stifling Innovation" — The U.S. Missed Major Opportunities in Cryptocurrency
U.S. Securities and Exchange Commission Chairman Paul Atkins criticized former Chairman Gary Gensler for not adapting to crypto innovation, leading to the United States falling behind in global regulation. He proposed three major policy shifts, including withdrawing lawsuits against crypto institutions, establishing a dedicated crypto task force, and promoting a blockchain upgrade plan. Atkins announced that he will continue to push for the approval of tokenized financial products in the future.
動區BlockTempo1h ago
The UK plans to open up cryptocurrencies for legal gambling payments, with regulatory pathways in development and possibly implemented by 2027.
The UK gambling regulatory authority is evaluating the possibility of allowing betting with cryptocurrencies to ensure fund security and consumer protection. This move complements the Financial Conduct Authority's digital asset framework, which plans to establish relevant rules by 2026 and implement them by the end of 2027. If successful, it could become an important pilot for the integration of cryptocurrencies and the gambling industry.
GateNews1h ago
The negotiations for the CLARITY Act are still ongoing, and the battle over stablecoin yields is heating up. March 1 is not the final deadline.
Negotiations between the crypto industry and the banking sector regarding the stablecoin yield provisions in the CLARITY Act are ongoing, despite rumors that talks are near collapse. Multiple sources indicate that discussions are still in progress, and March 1 is not the deadline. Both parties are debating the yield mechanism, with disagreements centered on its impact on traditional deposits. Although there are short-term differences, the negotiation channels remain open, and future legislation will influence the business models of stablecoins and the banking system.
GateNews1h ago
OCC Expands Trust Bank Services, Ripple Opens U.S. Banking System Channel
The U.S. Office of the Comptroller of the Currency has revised trust bank regulations, allowing national trust banks to engage in non-trust activities, eliminating previous compliance concerns. As a result, crypto companies like Ripple and Circle can now enter the U.S. banking system, promoting integration between the industry and traditional finance. At the same time, the Federal Reserve plans to streamline main accounts, which will allow these companies to access payment systems, but they face opposition from the banking industry.
MarketWhisper2h ago
Japan's Financial Services Agency supports cryptocurrency anti-money laundering pilot programs, with the participation of several well-known companies
The Japanese Financial Services Agency announced that it will support a pilot program for anti-money laundering in cryptocurrency assets, involving 13 companies including Hitachi and GMO Coin. The experiment will be conducted in 2026 to verify the effectiveness of sharing suspicious wallet address information.
GateNews3h ago
