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U.S. lawmakers from both parties have introduced a blockchain innovation bill to protect non-custodial developers from undue liability
Svmuu News: Crypto journalist Eleanor Terrett posted on X that U.S. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren have jointly introduced the "Blockchain Innovation Promotion Act of 2026," which aims to protect software developers from criminal liability under Section 1960 of the U.S. 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—particularly the DeFi sector—has been advocating for inclusion in the Clarity Act. While Section 1960 was originally intended for institutions that transfer funds in custody, recent cases (such as Tornado Cash and Samourai Wallet) have applied it to non-custodial software developers who do not control user funds, sparking conflict between crypto builders and regulators.
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