Sponsors (4)
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Amends the federal crime for unlicensed money transmission by inserting new language into 18 U.S.C. §1960(a) that is intended to address blockchain-related activity. Because the exact inserted text is not provided, the bill clearly changes who may be covered by the federal offense and how the statute reads, but the specific changes to definitions, covered activities, or criminal liability are uncertain.
The bill aims to clarify and tighten rules on unlicensed money transmission—potentially reducing fraud and improving enforcement—but it raises compliance costs and legal risk for money-transfer businesses and individuals and will require enforcement and court resources to interpret and apply the new
People who rely on federal guidance (consumers, remittance users, and regulators) will get clearer, more predictable rules about what counts as illegal unlicensed money transmission, which can make enforcement more consistent and help reduce fraud.
Businesses and individuals who operate money transfer services (including small money services businesses) may face new compliance costs and possible criminal liability if the amended language expands prohibited conduct.
Service providers and people sending remittances could face greater risk of prosecution if the text narrows safe harbors or broadens the definitions of covered activity.
Federal courts and law enforcement will likely need to spend additional time and resources interpreting and litigating the amended language during the transition, creating short- to medium-term implementation costs.
Designates the official short title of the Act as the "Promoting Innovation in Blockchain Development Act."
Amends 18 U.S.C. §1960(a) by inserting additional text after a specified point in the subsection.
Applies the change to the existing legal framework governing unlicensed money transmission and related offenses found in section 1960(a).
Makes a conforming change to the statutory text of section 1960(a) by inserting the new language at the designated location.
The amendment targets the federal statute used to prosecute unlicensed money transmission and therefore primarily affects entities involved in moving value: financial firms, cryptocurrency exchanges, wallet providers, and blockchain developers. If the inserted text broadens the statute, these actors could face new licensing requirements, higher compliance costs, and greater criminal exposure; banks and payment processors could also alter their customer relationships to manage legal risk. If the text narrows or clarifies the statute, it could reduce regulatory uncertainty and lower enforcement risk for some blockchain activities. State governments and state regulators may need to adjust licensing and enforcement approaches to align with federal changes. Law enforcement and federal prosecutors will use the revised language when deciding cases, and regulatory agencies such as FinCEN may be asked to issue interpretive guidance. Because the precise wording is not provided, the magnitude and direction of impacts remain uncertain and will depend on the final text and subsequent administrative or judicial interpretation.
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Referred to the House Committee on the Judiciary.
Introduced February 26, 2026 by Scott Fitzgerald · Last progress February 26, 2026
Referred to the House Committee on the Judiciary.
Introduced in House