A new bipartisan bill, the Promoting Innovation in Blockchain Development Act of 2026, has been introduced by Representatives Fitzgerald, Cline, and Lofgren. The legislation aims to shield software developers from prosecution under criminal code Section 1960, which traditionally targets custodial money transmitters. The bill clarifies that Section 1960 should only apply to entities controlling customer funds, not to developers who merely write code. This distinction has been a significant demand from the crypto industry, especially within the DeFi sector, following controversial applications of the law in cases involving Tornado Cash and Samourai Wallet.