The No Bailout for Crypto Act would prohibit the federal government from using taxpayer funds to bail out cryptocurrency companies and digital asset businesses if they face financial failure or bankruptcy. The bill bars crypto intermediaries, exchanges, decentralized finance platforms, and related service providers from accessing emergency lending facilities operated by the Federal Reserve or receiving assistance from the Treasury Department's Exchange Stabilization Fund. The legislation applies broadly to any entity providing financial services related to digital assets, including traditional financial firms conducting crypto business. The bill includes an exception to preserve the Federal Reserve's existing authority to lend to banks and depository institutions during financial crises. With no specified funding or implementation timeline in the text, the bill would take effect upon passage and would establish an immediate ban on future crypto-related government bailouts.
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