S. 4092: No Crypto in Social Security Act

This bill, titled the No Crypto in Social Security Act, aims to amend the Social Security Act to prohibit the Social Security Trust Funds from making investments in cryptocurrency and related digital assets. The main points of the bill include:

Prohibition on Cryptocurrency Investments

The bill explicitly states that the Social Security Trust Funds may not invest in:

• Digital Assets: These are defined in accordance with the GENIUS Act, which typically includes cryptocurrencies and other digital currencies.
• Crypto-related Investments: This term covers various investment vehicles, including:
• Investment funds related to futures on digital assets or indices of digital assets.
• Stocks or bonds of companies that gain significant value from digital assets or primarily earn revenue from services related to digital assets, such as trading, management, or custody.
• Any other assets where their value is directly linked to digital assets.

Purpose of the Bill

The primary purpose of this legislation is to safeguard the Social Security Trust Funds from the potential risks associated with investments in volatile and speculative markets, such as those of cryptocurrencies. By restricting these investments, the bill aims to protect the financial stability of the Social Security program and ensure that its Trust Funds are managed with a focus on risk-averse assets.

Implementation

If enacted, this legislation would add specific language to the existing Social Security Act, making it clear that digital assets and crypto-related investments are not permissible for the Trust Funds. This amendment would provide a clear legal framework to guide how the funds are invested.

Related Definitions

The bill includes definitions for key terms that outline what constitutes a digital asset and a crypto-related investment, ensuring clarity in the legislation's enforcement.

Relevant Companies

• MSTR (MicroStrategy Incorporated): This company substantially derives its value from its holdings of Bitcoin, making it likely to be affected by the bill's prohibition on investing in digital assets.
• COIN (Coinbase Global, Inc.): As a public company that primarily earns revenue from providing services related to cryptocurrencies, it could see an impact if Social Security Trust Funds are prohibited from investing in associated stocks or bonds.