U.S. Lawmakers Propose the "Promoting Blockchain Development and Innovation Act of 2026" to Clarify the Applicability Boundaries of Section 1960

Odaily News According to a disclosure by the DeFi Education Fund, U.S. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren have jointly introduced the "Promoting Blockchain Development and Innovation Act of 2026." The bill aims to clarify the scope of application of Title 18, Section 1960 of the United States Code regarding "unlicensed money transmitting businesses."

The bill seeks to clarify that Section 1960 applies only to entities that control customer assets and conduct fund transfers on behalf of customers, and should not be extended to blockchain software developers who do not hold user funds. The related proposal states that this move aligns with the original legislative intent of Congress and the longstanding regulatory interpretation by the U.S. Department of the Treasury's Financial Crimes Enforcement Network (FinCEN), aiming to reduce the risk of developers facing improper criminal charges.