Sponsors (7)
The bill prioritizes protecting taxpayers and limiting government bailouts and moral hazard in the digital-asset sector, while increasing the risk that crypto customers, startups, and potentially the broader financial system bear greater losses and face higher uncertainty and costs.
Taxpayers and everyday consumers: the bill prevents use of taxpayer funds to bail out failing digital-asset firms and reduces expectations of emergency government rescues, lowering direct fiscal exposure and moral hazard.
Depository institutions and the traditional banking system: the bill clarifies that Federal Reserve emergency lending (10B authority) remains focused on conventional depository institutions, preserving the Fed's role and lending priorities.
Regulated financial firms and the broader financial system: excluding digital-asset activities from emergency support could increase systemic risk and contagion if crypto-related distress threatens otherwise-regulated institutions.
Customers and counterparties of crypto firms: without a federal backstop, investors, small businesses, and counterparties may face larger losses if digital-asset firms fail.
Crypto and blockchain startups and investors: tighter limits on emergency support could raise funding costs and risk premia, potentially slowing innovation and raising private-sector financing costs.
Based on analysis of 2 sections of legislative text.
Prohibits federal agencies, the Fed’s emergency lending, and the Exchange Stabilization Fund from providing financial assistance to crypto/digital-asset intermediaries, platforms, protocols, or related financial service providers.
Introduced March 19, 2026 by Richard Joseph Durbin · Last progress March 19, 2026
Prohibits federal agencies and federal financial backstops from providing bailouts or emergency financial assistance to crypto-related firms, platforms, protocols, or financial service providers engaged in digital-asset activities. It also bars those entities from accessing Federal Reserve emergency liquidity facilities and the Exchange Stabilization Fund, while preserving the Fed’s existing lending authority to traditional depository institutions.