[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4157 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4157

  To prohibit bailouts of digital asset market participants, and for 
                            other purposes.


_______________________________________________________________________


                   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.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``No Bailout for Crypto Act''.

SEC. 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).
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