- U.S. Senator Elizabeth Warren is urging the Federal Reserve and Treasury to avoid a taxpayer-funded bailout for “cryptocurrency billionaires.”
- The letter warns intervention would disproportionately benefit industry figures, including President Trump, who reportedly has ties to World Liberty Financial.
- Warren’s demand comes as Bitcoin’s price has plunged over 50% from its October peak.
- The Treasury Secretary confirmed the U.S. government retains seized Bitcoin but did not directly answer questions about potential bailout authority.
Senator Elizabeth Warren has sent a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, urgently warning against any potential government bailout of the cryptocurrency industry. This move, reported by CNBC, directly ties the plea to a significant market downturn and political concerns. Consequently, she argued such action would be “deeply unpopular” and could directly enrich President Trump’s family-linked crypto firm.
Warren cited a recent congressional hearing where lawmakers questioned Bessent’s authority to bail out digital assets like Bitcoin. During the exchange, Congressman Brad Sherman specifically asked if the Treasury could instruct banks to buy Bitcoin or Trumpcoin. Bessent, appearing bemused, clarified banks could hold various assets as part of their diversification strategy.
The Treasury Secretary further distinguished between taxpayer dollars and government assets when pressed on the topic. He confirmed “we are retaining seized Bitcoin,” which he classified as a government asset, not tax money. However, Senator Warren characterized this response as a “deflection” in her subsequent letter.
She expressed deep uncertainty about any existing government plans to intervene in the Bitcoin selloff. “Ultimately, any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires,” Warren wrote. Her letter therefore demanded agencies refrain from propping up Bitcoin through purchases, guarantees, or liquidity facilities.
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