No Bailout for Crypto Act

S. 4157, the No Bailout for Crypto Act, would prevent taxpayers from funding a federal bailout of the cryptocurrency industry if it experiences an economic crash or mass bankruptcies. The bill would accomplish this by prohibiting federal agencies from providing financial assistance to crypto companies, restricting their access to emergency liquidity facilities through the Federal Reserve, and preventing the Treasury Department from using the Exchange Stabilization Fund to support the crypto industry. The legislation is currently under consideration by the Senate Committee on Banking, Housing, and Urban Affairs.

The bill's sponsor argues that the cryptocurrency industry is volatile and corruption-ridden, and that taxpayers should not bear the cost of rescuing it as they did during the 2008 financial crisis. According to polling cited by the bill's supporters, nearly two-thirds of Americans oppose a bailout of the crypto industry. If enacted, the law would ensure that crypto companies cannot access the same government financial support mechanisms that other financial institutions might use during emergencies.