US lawmakers introduce bill to limit criminal liability for blockchain developers

U.S. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren have co-sponsored the Blockchain Development Act, a bill designed to explicitly exclude blockchain software developers from criminal liability, according to Eleanor Terrett, host of "Crypto in America." The core of the legislation is to clarify the scope of Section 1960, the federal statute criminalizing unlicensed money transmitting businesses. While the provision was originally intended to regulate custodial businesses that hold and manage customer funds, its application to software developers in cases involving Tornado Cash and Samourai Wallet—who did not directly control user funds—has become a major point of contention between the crypto industry and regulators. The proposed act would legally specify that the mere act of developing software or deploying code is not a punishable offense.