No Crypto in Social Security Act
- Bill Number
- S. 4092
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Social Welfare
- Status
- Introduced
- Latest Action
- 2026-03-12: Read twice and referred to the Committee on Finance. (text: CR S1049)
- Last Updated
- 2026-04-02T18:55:42Z
AI-Generated Summary
Summary of S. 4092: No Crypto in Social Security Act
Purpose
This bill aims to prevent the Social Security Trust Funds—pools of money that pay for retirement, disability, and survivor benefits—from being invested in cryptocurrencies or related assets. It seeks to protect these funds from the high risks and volatility often associated with digital currencies.
Key Provisions
- Amendment to Investment Rules: The bill modifies Section 201(d) of the Social Security Act (the law governing Social Security) by adding a new sentence that bans investments in any "digital asset" or "crypto-related investment."
- Definitions:
- Digital Asset: Defined by reference to the GENIUS Act (a separate law under 12 U.S.C. 5901), which generally covers cryptocurrencies and similar blockchain-based assets like Bitcoin.
- Crypto-Related Investment: Broadly includes:
- Investment funds (under the Investment Company Act of 1940) tied to futures contracts or indices on digital assets.
- Stocks or bonds of public companies that mainly get their value from holding digital assets or earn most revenue from crypto services (e.g., trading, custody, or issuance).
- Any other asset whose value depends on or comes from digital assets.
- Short Title: The act is named the "No Crypto in Social Security Act."
Significant Changes to Existing Law
- Prior to this bill, Section 201(d) of the Social Security Act allowed the trust funds to invest in certain U.S. government securities and other approved assets but did not explicitly address cryptocurrencies.
- This amendment introduces a clear prohibition, closing a potential loophole for indirect crypto exposure through funds, stocks, or derivative assets, while leaving other traditional investments intact.
Potential Impacts
- Government Agencies: The Social Security Administration (SSA) would face restrictions on investment options, potentially simplifying management but limiting opportunities for higher returns from emerging markets. It could reduce financial risk to the trust funds, which are critical for long-term solvency.
- Citizens: Social Security beneficiaries (e.g., retirees and disabled individuals) may benefit from greater stability in fund investments, protecting benefits from crypto market crashes. However, it could indirectly affect fund growth if crypto proves lucrative in the future.
- International Relations: No direct impacts, as the bill focuses on domestic U.S. fund management and does not involve foreign policy or cross-border investments.
Main Stakeholders Affected
- Social Security Administration and Trust Funds: Directly responsible for complying with the new investment bans.
- Social Security Beneficiaries: Over 70 million Americans relying on these funds for income security.
- Cryptocurrency Industry: Companies and funds involved in digital assets would lose a potential major investor (the trust funds hold trillions in assets), potentially slowing industry growth.
- U.S. Taxpayers and Congress: Indirectly affected through oversight of public funds and debates on fiscal prudence.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens regulatory clarity by cross-referencing the GENIUS Act for definitions, ensuring consistency across federal laws. It could invite challenges if interpreted too broadly, affecting non-crypto investments mistakenly classified as "related."
- Constitutional: No major issues; Congress has broad authority under Article I to manage federal spending and trust funds without infringing on individual rights.
- Political: Highlights growing congressional caution toward unregulated digital assets in public finance, potentially influencing broader crypto policy debates (e.g., on taxation or oversight) amid concerns over market instability.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Sen. Durbin, Richard J. [D-IL]
Recent Actions
- 2026-03-12: Read twice and referred to the Committee on Finance. (text: CR S1049)
- 2026-03-12: Introduced in Senate
Bill Versions
- No Crypto in Social Security Act — issued 2026-03-12 — PDF (3 pages)