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
Japan's "Sanae Token" plummets 58%! Prime Minister Sanae Takashi denies any connection, as political meme coin regulatory risks intensify
The "Meme Coin" under Japanese Prime Minister Fumio Kishida's name has plummeted 58% after being accused of having no connection to him. The token was launched on February 25th, claiming to be related to political support. After Kishida denied the connection, the market reacted strongly, and the Financial Services Agency has launched an investigation, focusing on compliance issues related to crypto assets.
GateNews11m ago
SANAE Meme Coin Plummets 58%! Sanae Takashi Denies Issuing Coins, Japanese Financial Services Agency Intervenes in Investigation
Japanese Prime Minister Fumio Kishida on March 2 denied any connection to the SANAE TOKEN named after him, causing the token to plummet by 58%. The Financial Services Agency investigation found that the issuer did not hold the necessary exchange licenses. Similar incidents are occurring frequently worldwide, providing references for future regulation, with legal grounds potentially becoming a regulatory template for other countries.
MarketWhisper1h ago
XRP Today's News: Cardano Founder Reiterates "Securities" Regulation Sparks Community Controversy
Cardano founder Hoskinson criticizes the Ripple-supported "Clarity Act" for potentially classifying XRP as a security, sparking community controversy. He warns that most new tokens may face similar risks. Ripple CEO Garlinghouse argues that clear regulatory rules are more beneficial. XRP is currently under technical pressure, with the $1.30 support level being critical, and market trends should be closely monitored.
MarketWhisper1h ago
European Central Bank report warns: Widespread adoption of stablecoins threatens the monetary sovereignty of the Eurozone
The European Central Bank warns that the proliferation of stablecoins could threaten the monetary sovereignty of the Eurozone, especially when foreign currency stablecoins dominate the market, affecting financial stability and policy transmission effectiveness. Many European banks are developing euro stablecoins to address potential risks and enhance financial stability.
MarketWhisper2h ago
CFTC Chair: Cryptocurrency perpetual futures to be launched "within a month," countdown to U.S. liquidity return
Chairman Michael Selig of the U.S. Commodity Futures Trading Commission (CFTC) stated that the CFTC plans to launch cryptocurrency perpetual futures within the next month to attract liquidity back to the U.S. market. He emphasized that the lack of legislative certainty limits the actions of regulatory agencies and pointed out that progress on the Market Structure Bill remains behind schedule. Additionally, Selig is currently the only CFTC commissioner confirmed by the Senate, highlighting the challenges in advancing policy.
MarketWhisper3h ago
FATF warns that stablecoins are becoming a primary tool for illegal transactions, calling for increased regulation of issuers
The FATF report states that stablecoins have become the main virtual asset involved in illegal transactions, accounting for an estimated 84% of illegal transaction volume by 2025, involving a total of $154 billion. The report calls for strengthened regulation of issuers and warns that non-custodial wallets are a key vulnerability, recommending that countries impose anti-money laundering obligations on stablecoins.
GateNews3h ago
