Congress Introduces Bill to Protect Crypto Coders from Criminal Liability

A new bill aimed at protecting crypto coders from criminal liability has been introduced in Congress, amidst growing concerns over developer liability following high-profile crackdowns on Tornado Cash and Samourai Wallet.

The proposed legislation, known as the Innovation in Blockchain Development Act of 2026, seeks to clarify that Section 1960 of the criminal code applies only to actors who control customer funds, not developers who write the code.

This differentiation is a key aspect of the CLARITY Act, currently under discussion in Washington, which aims to provide clarity on the treatment of non-custodial privacy tools in the crypto industry.