S. 4157

119 S4157 IS: No Bailout for Crypto Act
 U.S. Senate
 2026-03-19
 text/xml
 EN
 Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
 II
 119th CONGRESS  2d Session
 S. 4157
 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.
1.
Short title
This Act may be cited as the   No Bailout for Crypto Act  .
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 ).