US Lawmakers Propose Blocking Taxpayer-Funded Bailouts for Crypto Firms

A new legislative proposal in the US is aimed at preventing taxpayer-funded bailouts for cryptocurrency firms during times of market distress.

The 'No Bailout for Crypto Act' was introduced by Senator Richard Durbin (D-IL) on March 19, along with a bipartisan group of cosponsors that includes Senators Elizabeth Warren (D-MA), Peter Welch (D-VT), Bernie Sanders (I-VT), Tina Smith (D-MN), and Mazie Hirono (D-HI).

The bill targets limits on federal intervention by blocking federal agencies from extending emergency support to entities primarily engaged in crypto trading, custody, or issuance.