Lawmakers introduce bill to shield crypto developers after Tornado Cash prosecutions

Representatives Scott Fitzgerald, Ben Cline and Zoe Lofgren introduced the Promoting Innovation in Blockchain Development Act of 2026, a bipartisan measure that would clarify that software developers who write code but do not control customer funds are not subject to prosecution under federal criminal statute Section 1960 ^[2].

The bill was presented against the backdrop of prosecutions tied to the Tornado Cash mixer, which prompted renewed debate about coder liability and led industry groups to support congressional action to avoid criminalizing the act of writing open-source code ^[1][3].

Observers note the proposal arrives amid broader congressional discussions about DeFi market-structure legislation — including talks around the CLARITY Act — and raises questions about how developer protections will intersect with wider crypto regulatory efforts ^[4][2].

Introduced on Feb. 26, 2026, the bill seeks to establish statutory protections for blockchain developers and will be considered as part of ongoing debates over crypto regulation in Congress ^[1][2][4].