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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U.S. Senate Agriculture Committee Chair Boozman presents GOP-only cryptocurrency market structure bill draft amid bipartisan tensions.
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Senate agriculture committee eyes GOP-only crypto market structure draft

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The U.S. Senate Agriculture Committee, led by Chair Boozman, is preparing to release a Republican-only draft for cryptocurrency market structure legislation. Insiders anticipate the draft will protect developers from liability, but concerns mount over potential lack of Democratic support. A committee spokesperson highlighted appreciation for bipartisan compromise efforts.

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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A delay in passing U.S. crypto market structure legislation is limiting valuation growth for American-exposed crypto firms, according to Benchmark analyst Mark Palmer. The holdup prolongs regulatory uncertainty amid rising global adoption, though bitcoin and infrastructure plays remain relatively insulated. Palmer still expects the bill to pass, albeit possibly later than anticipated.

Momentum for a comprehensive regulatory framework for cryptocurrencies has slowed in the U.S. Senate, reducing chances of passage this year. Ohio Republican Sen. Bernie Moreno, a former crypto entrepreneur leading negotiations, highlighted disputes over stablecoin rewards as the primary obstacle. This follows last July's GENIUS Act, which regulated stablecoins but left broader crypto oversight unresolved.

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The US Senate has approved the GENIUS Act, establishing a federal framework for dollar-pegged stablecoins. The bill requires full backing by liquid assets and aims to reinforce US dollar dominance. It passed with bipartisan support amid debates over risks and political ties.

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