Congress introduces bill protecting crypto developers

Lawmakers in the US Congress introduced a new bill on Thursday aimed at shielding crypto software developers from criminal prosecution. The legislation focuses on decentralized finance (DeFi) and raises questions about the status of a broader crypto market structure bill. This development comes amid ongoing debates over cryptocurrency regulation.

On Thursday, February 26, 2026, US lawmakers introduced a new bill in Congress designed to protect developers of crypto software from criminal prosecution. According to reports, the legislation targets protections for those building decentralized finance (DeFi) applications, a sector that has faced regulatory scrutiny.

The bill's introduction prompts speculation about its implications for the crypto market structure bill, which has been under discussion in Congress. Observers question whether this new DeFi-focused measure signals that the more comprehensive market structure legislation might be sidelined.

Details on the bill's sponsors or specific provisions remain limited in available reports, but it underscores continued efforts to clarify legal boundaries in the cryptocurrency space. As Congress navigates these issues, the balance between innovation and oversight remains a key point of contention.

This move highlights the evolving regulatory landscape for digital assets, where protections for developers could influence future DeFi growth.

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The U.S. Senate Banking Committee is set to mark up the Digital Asset Market Clarity Act of 2025 on January 15, 2026, aiming to establish a federal framework for digital assets. The bill would divide regulatory oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Controversy surrounds provisions related to decentralized finance, with advocacy groups launching ads to oppose them.

The U.S. Senate's major cryptocurrency market structure bill faces a delay of weeks or months as lawmakers shift attention to housing affordability initiatives. This pivot follows Coinbase's withdrawal of support and aligns with the Trump administration's push to restrict institutional investors from buying single-family homes. The change raises questions about the bill's future viability.

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The U.S. Senate Agriculture Committee voted 12-11 along party lines to advance a crypto market structure bill on January 29, 2026, marking a milestone despite lacking bipartisan support. Democrats opposed the measure over concerns including ethics rules for President Donald Trump and his family's crypto interests, as well as protections for consumers and the Commodity Futures Trading Commission. The bill now heads to the Senate Banking Committee for further consideration.

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