U.S. lawmakers propose the "2026 Blockchain Development and Innovation Act" to clarify the applicable boundaries of Article 1960

By: rootdata|2026/02/28 18:43:31

According to the DeFi Education Fund, U.S. Representatives Scott Fitzgerald, Ben Cline, and Zoe Lofgren jointly proposed the "2026 Blockchain Development Innovation Act," aimed at clarifying the applicability of Section 1960 of Title 18 of the U.S. Code regarding "unlicensed money transmission businesses."

The bill seeks to clarify that Section 1960 applies only to entities that control customer assets and conduct fund transfers on behalf of customers, and should not extend to blockchain software developers who do not hold user funds. The related proposal states that this move is consistent with the original legislative intent of Congress and the long-standing regulatory interpretation of the Financial Crimes Enforcement Network (FinCEN) of the U.S. Department of the Treasury, aiming to reduce the risk of improper criminal charges faced by developers.

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