S4157119th CongressWALLET

No Bailout for Crypto Act

Sponsored By: Senator Richard Durbin

Introduced

Summary

Prohibits federal bailouts for crypto and related entities. This bill would bar federal financial assistance, emergency Federal Reserve liquidity facilities, and Exchange Stabilization Fund support for defined digital asset intermediaries, decentralized finance protocols, and related service providers, while preserving the Fed's authority to lend to depository institutions.

Show full summary
  • Digital asset market participants: Digital asset intermediaries, digital asset service providers, distributed ledger protocols, and decentralized finance trading protocols would be explicitly excluded from federal financial assistance, emergency liquidity under section 13(3) of the Federal Reserve Act, and Exchange Stabilization Fund support.
  • Regulated banks and financial service providers: Covered financial service providers cannot receive federal support for their digital asset activities, but the bill preserves the Federal Reserve's ability to lend to depository institutions under section 10B of the Federal Reserve Act.
  • Scope and legal alignment: Definitions borrow terms from the GENIUS Act and reference the Bank Holding Company Act and Federal Deposit Insurance Act to harmonize interpretations. The text focuses on cutting off federal backstops rather than creating new regulatory programs.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

Ban federal bailouts for crypto

This bill would bar many federal bailouts and emergency support for crypto-related firms and services. Federal agencies would be prohibited from giving financial assistance to digital asset intermediaries, digital asset service providers, distributed ledger protocols, and DeFi trading protocols to prevent their failure or bankruptcy. These covered entities would also be barred from accessing Federal Reserve emergency liquidity facilities under section 13(3). The Treasury would be prevented from using the Exchange Stabilization Fund to benefit them.

New crypto definitions and Fed carve-out

This bill would add statutory definitions for blockchain, decentralized finance trading protocols, digital asset intermediaries, and financial service providers. It would adopt the GENIUS Act meanings for digital asset, digital asset service provider, and distributed ledger protocol and tie "digital asset intermediary" to the Bank Holding Company Act definition of financial services. These definitions would take effect upon enactment and change which firms are covered by the ban on federal support. The bill would also say the Federal Reserve may still lend to depository institutions under section 10B, which would not be altered by the new prohibitions.

Sponsors & CoSponsors

Sponsor

Richard Durbin

IL • D

Cosponsors

  • Elizabeth Warren

    MA • D

    Sponsored 3/19/2026

  • Peter Welch

    VT • D

    Sponsored 3/19/2026

  • Bernie Sanders

    VT • I

    Sponsored 3/19/2026

  • Tina Smith

    MN • D

    Sponsored 3/19/2026

  • Mazie Hirono

    HI • D

    Sponsored 3/19/2026

  • Jeff Merkley

    OR • D

    Sponsored 3/20/2026

Roll Call Votes

No roll call votes available for this bill.

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