PIBDA protects software developers who write code but do not control user funds from being improperly treated as intermediaries under criminal code Section 1960.
On February 26, 2026, Representatives Scott Fitzgerald (R-WI), Ben Cline (R-VA), and Zoe Lofgren (D-CA) introduced H.R. 7732, the bipartisan Promoting Innovation in Blockchain Development Act of 2026. PIBDA is now consponsored by several Members of Congress on both sides of the aisle. PIBDA clarifies that Section 1960 applies only to those that control customer assets and transmit funds on behalf of customers, aligning the statute with congressional intent and the Treasury Department’s long-standing regulatory interpretation.
What It Does
By clarifying the scope of Section 1960 and ensuring it is consistent with other parts of U.S. code (the Bank Secrecy Act), this bipartisan bill strengthens U.S. competitiveness in next-generation digital infrastructure while bolstering national security.
Key Resources
Related Content
- DEF and 30+ Companies Call on Congress to Clarify Section 196
- DOJ Issues Memo Calling for the End of “Regulation by Prosecution”
- Coalition Letter to David Sacks on Section 1960
- Through the Looking Glass: Conceptualizing Control and Analyzing Criminal Liability For Unlicensed Money Transmitting Businesses Under Section 1960
- Amicus Brief re. USA v Anton Peraire-Bueno, and James Peraire-Bueno
- Acting AAG of DOJ’s Criminal Division Delivers Remarks on Section 1960 at American Innovation Project Summit