hold on there's just too much going on in Congress lmao...
Bans federal bailouts for crypto firms.
Senator Durbin (D-IL) with Warren, Welch, Sanders, Smith, Hirono.
Introduced in Senate, referred to Banking Committee.
The bill prohibits any federal agency from providing financial assistance to crypto intermediaries, service providers, or protocols to prevent their failure. It also blocks emergency loans from the Federal Reserve and use of the Exchange Stabilization Fund for crypto-related entities. Senator Dick Durbin is the lead sponsor, joined by pro-consumer Democrats. Being in committee means hearings could happen but no vote yet.
Introduced Mar 19, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
If a major crypto exchange or lender collapses, the government cannot step in with loans or grants. The Federal Reserve's emergency lending program is specifically off-limits for crypto entities. The Treasury's currency stabilization fund also cannot be used. This means crypto companies would need private solutions or fail—potentially affecting users but not requiring public money.
Supporters Say
Supporters say crypto is risky and should not expect taxpayer-funded rescues.
Critics Say
Critics argue that banning all assistance could destabilize markets and harm consumers in a crisis.
Supporters point to the 2022 crypto crashes that cost investors billions, arguing that bailouts encourage reckless risk-taking. Critics contend that some crypto services are tied to traditional finance, and a blanket ban could spill over into the broader economy. They argue the Federal Reserve needs flexibility to prevent systemic risks.