Sen. Durbin Introduces No Bailout for Crypto Act to Block Taxpayer Rescues of Digital Asset Firms
This bill was recently introduced in the Senate and sent to the Committee on Banking, Housing, and Urban Affairs for review. It is currently in the early stages of the lawmaking process and is not yet scheduled for a vote. The bill is considered active as it waits for the committee to decide on its next steps.
Crypto-related businesses, including exchanges, wallet providers, and DeFi platforms, would operate without any possibility of government rescue during a crisis. This increases the risk of doing business in the crypto space but also sets clear ground rules. Small crypto startups may find it harder to attract institutional investment if the government cannot backstop the industry during extreme downturns.
“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.”
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (text: CR S1380)
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
U.S. Senator Richard Durbin (D-IL) introduced the 'No Bailout for Crypto Act' on March 19, targeting limits on federal intervention. The measure seeks to prevent taxpayer-backed assistance for digital asset firms during periods of market distress by blocking emergency support from federal agencies.
Senator Dick Durbin (D-Ill.) introduced the No Bailout for Crypto Act to prohibit bailouts of digital asset market participants. The legislation would instate a prohibition on federal agencies providing financial assistance to prevent the failure or bankruptcy of the crypto industry.
Legislative scrutiny of crypto-related financial risk sharpened as U.S. Senator Richard Durbin (D-IL) introduced the 'No Bailout for Crypto Act' on March 19. The bill seeks to preserve confidence in existing safety nets without extending them to digital asset losses.
Document Type
Congressional Bill
Official Title
No Bailout for Crypto Act
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