Overview
- Reps. Scott Fitzgerald, Ben Cline, and Zoe Lofgren introduced the bipartisan Promoting Innovation in Blockchain Development Act on Feb. 26.
- The bill would amend 18 U.S.C. §1960 so liability targets those who hold or control user assets, excluding developers who only write or maintain open-source code.
- Sponsors emphasize the change would not protect custodial businesses from prosecution and is intended to preserve enforcement against true financial intermediaries.
- Industry groups including the DeFi Education Fund, the Blockchain Association, the Solana Institute, and Jump Crypto quickly endorsed the measure.
- The push follows recent cases involving Tornado Cash and Samourai Wallet, with parallel Senate efforts underway and open questions about whether any reform would affect ongoing prosecutions.