A bipartisan duo of US senators introduced a bill that would aim to protect investors in the event that a cryptocurrency exchange files for bankruptcy by ensuring that their digital assets would be held separate.

The Responsible Financial Innovation Act, introduced by Senators Kirsten Gillibrand and Cynthia Lummis on 7 June, would provide legal clarity for investors, creditors and crypto exchanges about the treatment of digital assets in bankruptcy, “ensuring that assets are appropriately safeguarded in an insolvency,” according to an overview of the legislation.