No Bailout for Crypto Act

Richard J. Durbin

Democrat · IL · Senator

Source: Congress.gov · FEC

• Bernard Sanders (I-VT)Original· 2026-03-19
• Elizabeth Warren (D-MA)Original· 2026-03-19
• Mazie K. Hirono (D-HI)Original· 2026-03-19
• Peter Welch (D-VT)Original· 2026-03-19
• Tina Smith (D-MN)Original· 2026-03-19
• Jeff Merkley (D-OR)· 2026-03-20

Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text: CR S1380)

2026-03-19

Source: Congress.gov

This bill would prohibit the federal government from using taxpayer money to rescue cryptocurrency companies or investors if they face financial collapse, similar to the bank bailouts that occurred during the 2008 financial crisis. The measure would apply to crypto exchanges, lending platforms, and other digital asset businesses, preventing them from receiving government loans, guarantees, or direct financial assistance during emergencies. The bill aims to ensure that cryptocurrency investors and companies bear the full financial consequences of their own losses rather than shifting those costs to American taxpayers.

AI-assisted summary generated from the official bill metadata (title, subjects, actions) sourced from Congress.gov. Cached and reviewed. Always verify against the official text linked below.

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 4157 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 4157 To prohibit bailouts of digital asset market participants, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES March 19, 2026 Mr. Durbin (for himself, Ms. Warren, Mr. Welch, Mr. Sanders, Ms. Smith, and Ms. Hirono) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs _______________________________________________________________________ A BILL To prohibit bailouts of digital asset market participants, and for other purposes. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``No Bailout for Crypto Act''. SEC. 2. PROHIBITION ON BAILOUTS OF DIGITAL ASSET MARKET PARTICIPANTS. (a) Definitions.--In this section: (1) Blockchain.--The term ``blockchain'' means technology-- (A) through which data is shared across a network that creates a public blockchain of verified transactions or information among network participants; and (B) in which cryptography is used to link the data described in subparagraph (A)-- (i) to maintain the integrity of the blockchain described in that subparagraph; and (ii) to execute other functions. (2) Decentralized finance trading protocol.--The term ``decentralized finance trading protocol'' means a blockchain system through which multiple participants can execute a financial transaction-- (A) in accordance with an automated rule or algorithm that is predetermined and non-discretionary; and (B) without reliance on any other person to maintain control of the digital assets of the user during any part of the financial transaction. (3) Digital asset intermediary.--The term ``digital asset intermediary'' means any person that provides services that are financial in nature, as defined in section 4(k)(4) of the Bank Holding Company Act (12 U.S.C. 1843(k)(4)), with respect to any digital asset. (4) Financial service provider.--The term ``financial service provider'' means a financial service provider that is regulated by a Federal banking agency, as defined in section 3 of the Federal Deposit Insurance Act (12 U.S.C. 1813). (5) GENIUS act terms.--The terms ``digital asset'', ``digital asset service provider'', and ``distributed ledger protocol'' have the meanings given those terms, respectively, in section 2 of the GENIUS Act (12 U.S.C. 5901). (b) Prohibition on Financial Assistance.--A Federal agency may not provide financial assistance to a digital asset intermediary, digital asset service provider, distributed ledger protocol, decentralized finance trading protocol, or financial service provider with respect to digital asset activities, to prevent the failure or bankruptcy of the digital asset commodity intermediary. (c) Emergency Liquidity Facilities.--A digital asset intermediary, digital asset service provider, distributed ledger protocol, decentralized finance trading protocol, or financial service provider with respect to digital asset activities may not have access to any emergency liquidity facility established under section 13(3) of the Federal Reserve Act (12 U.S.C. 343). (d) Exchange Stabilization Fund.--The Secretary of the Treasury may not use any amounts in the Exchange Stabilization Fund established under section 5302 of title 31, United States Code, for the benefit of any digital asset intermediary, digital asset service provider, distributed ledger protocol, decentralized finance trading protocol or financial service provider with respect to digital asset activities. (e) Rule of Construction.--The prohibition under subsection (b) shall not alter the Federal Reserve's authority to lend to depository institutions under section 10B of the Federal Reserve Act (12 U.S.C. 347b). <all>

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