ChainCatcher report, according to Eleanor Terrett, U.S. Republican Representatives Fitzgerald (Wisconsin) and Cline (Virginia), along with Democratic Representative Lofgren (California), have jointly introduced the Blockchain Development Innovation Promotion Act, aiming to clarify the scope of application of Criminal Code Section 1960. The bill explicitly states that Section 1960 applies only to entities that control customer funds, not to developers who merely write code. Previously, in cases involving TornadoCash and SamouraiWallet, regulators applied this provision to non-custodial software developers, sparking strong backlash from the crypto industry. This bill will provide legal protection for blockchain developers and address a long-standing point of conflict between crypto innovation and regulation.
Bipartisan U.S. Lawmakers Propose Bill to Protect Blockchain Developers from Criminal Charges
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Summary
U.S. lawmakers from both parties have introduced the 'Promoting Blockchain Development Innovation Act' to protect developers from CFT and KYC enforcement under Section 1960. The bill clarifies that the law applies only to entities holding customer funds, not to code writers. Regulators previously targeted non-custodial developers such as TornadoCash, prompting industry pushback. The proposal aims to resolve tensions between regulation and innovation.
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