Sponsors (7)
The bill protects taxpayers and traditional banking stability by banning federal backstops for digital-asset entities, but it increases risks and volatility for crypto users and may push services into less-regulated jurisdictions, reducing consumer protections.
Banks and ordinary depositors retain clear access to established Federal Reserve lending authority, preserving liquidity and stability for deposit accounts and the broader financial system.
Taxpayers are less likely to bear the cost of rescuing failing crypto firms because federal backstops for digital-asset entities are banned.
Crypto firms face reduced moral hazard from expecting government rescues, which may encourage more prudent private risk management and stronger market discipline.
Customers of crypto platforms (retail investors and small businesses) could lose access to federal emergency liquidity protections, increasing their risk of losses if firms or markets fail.
Markets tied to digital assets could become more volatile or destabilized without a federal backstop, raising financial risk for retail investors and businesses that accept or hold crypto.
Some crypto-related services may shift to less regulated or offshore providers, complicating consumer protection, oversight, and enforcement.
Based on analysis of 2 sections of legislative text.
Bars federal agencies and the Treasury from using emergency lending or the Exchange Stabilization Fund to support crypto firms, protocols, or related financial service providers for digital-asset activities.
Introduced March 19, 2026 by Richard Joseph Durbin · Last progress March 19, 2026
Prohibits federal agencies from providing financial assistance, emergency lending, or Exchange Stabilization Fund support to firms, protocols, and certain financial service providers for activities involving digital assets. It defines covered terms (e.g., distributed ledger protocols, decentralized finance trading protocols, digital asset intermediaries, and banking-regulated financial service providers) and makes these prohibitions explicit while preserving the Federal Reserve’s separate authority to lend to depository institutions under existing law. The bill contains no new funding, implementation deadlines, or agency program directives; it is a narrow statutory restriction on federal backstops for entities and activities connected to digital assets and related services.