US Senator Richard Durbin introduced legislation on March 19 to prevent federal bailouts for crypto firms, aiming to shield taxpayers from industry losses.
The proposed “No Bailout for Crypto Act” would restrict federal agencies from providing emergency support to companies primarily involved in digital asset trading, custody or issuance.
“When crypto crashes, everyday Americans should not be on the hook for saving a failed industry—as they were during the 2008 financial crisis,”
Said US Senator Richard Durbin.
The bill also bars the use of federal funds to guarantee or absorb losses linked to crypto activities, including through programmes run by the Federal Reserve and the Federal Deposit Insurance Corp.
“My simple legislation would ensure that taxpayers aren’t left holding the bag for this shady industry,”
Durbin said.
The measure is backed by several lawmakers including Elizabeth Warren and Bernie Sanders, alongside consumer advocacy groups pushing for tighter financial safeguards.
If passed, the legislation would reinforce a clear divide between speculative crypto markets and federally protected financial systems, limiting the risk of spillover into traditional banking.