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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Illustration of the Senate Banking Committee advancing the crypto clarity act with a 15-9 vote.
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Senate banking committee advances crypto clarity act

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The US Senate Banking Committee voted 15 to 9 on May 14 to advance the Digital Asset Market Clarity Act. The bill now heads to the full Senate floor for further consideration.

Administration officials hosted law enforcement representatives at the White House on June 10 to address concerns about Section 604 of the CLARITY Act. The provision would shield many software developers from money-transmitter rules while keeping exchanges and hosted wallets under compliance requirements. Discussions centered on whether broad protections could hinder prosecutions of crypto-related crimes.

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The U.S. House Ways and Means Committee held a hearing Tuesday on several crypto tax proposals. Lawmakers raised concerns about exemptions for mining and staking rewards. Committee leaders indicated the bills may require further work before advancing.

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