U.S. Senator Elizabeth Warren has pressed Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell to confirm they will not use taxpayer funds to support Bitcoin or bail out cryptocurrency firms. Her letter, reported by CNBC, warns against “propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires.” This comes as Bitcoin trades near $67,000, down roughly 50% from its October high, with prediction markets indicating a 64% chance it falls further to $55,000.
Senator Elizabeth Warren has urged the U.S. Treasury and the Federal Reserve to confirm they will not use public money to support Bitcoin or rescue cryptocurrency companies. “Your agencies must refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires through direct purchases, guarantees, or liquidity facilities,” Warren wrote in a letter.
The senator stated it remains unclear what plans the U.S. government has to intervene in the current Bitcoin selloff. Bitcoin has fallen approximately 50% since its October peak, a decline intensified by leveraged position liquidations.
Warren argued a government intervention would disproportionately benefit wealthy investors and industry insiders. She warned a bailout “would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires” and could enrich President Donald Trump and his family.
She cited transactions by World Liberty Financial, which sold roughly 173 wrapped Bitcoin to avoid liquidation on an $11.75 million debt. Warren has been a long-time critic, stating recent volatility underscores the need for consumer protections in the industry.
During a recent congressional hearing, Treasury Secretary Scott Bessent pushed back against speculation about federal support. Bessent stated the government lacks the legal authority to use public funds to support or “bail out” Bitcoin.
