Bipartisan U.S. Lawmakers Introduce Blockchain Innovation Act to Protect Non-Custodial Developers from Improper Accountability

Odaily News: Crypto journalist Eleanor Terrett posted on platform X, stating that U.S. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren jointly introduced the "Promoting Blockchain Innovation Act of 2026," aimed at protecting software developers from criminal liability under Title 18, Section 1960 of the United States Code. The bill explicitly states that Section 1960 applies only to institutions that control customer funds, not to developers who merely write code. This distinction is precisely what the crypto industry, especially DeFi, has been pushing to include in the "Clarity Act." Section 1960 originally targeted custodial money transfer businesses, but recent cases (such as Tornado Cash and Samourai Wallet) have applied it to non-custodial software developers who do not control user funds, creating tension between crypto builders and regulators.