Warren Presses Treasury, Fed to Rule Out Bitcoin Bailout As Prices Tumble: Report
Senator Elizabeth Warren has called on the Treasury Department and Federal Reserve to refrain from using taxpayer money to support Bitcoin or bail out crypto firms amid a sharp downturn in cryptocurrency markets. In a letter, Warren insisted federal agencies avoid direct purchases, guarantees, or liquidity facilities benefiting crypto investors, arguing such measures would amount to wealth transfers from taxpayers to industry insiders and billionaires—including, potentially, Donald Trump and his associates. Bitcoin has lost about half its value since October, triggering widespread liquidations and heightened scrutiny of crypto's impact on financial stability. Warren expressed concern over government intervention, especially as some policymakers push for broader institutional adoption of digital assets. She cited recent transactions by crypto investors and argued bailouts would be unpopular and unjust. Treasury Secretary Bessent has refuted suggestions the government would establish a strategic Bitcoin reserve or use public funds to backstop the crypto market, clarifying seized Bitcoin is retained but not actively supported by taxpayer resources. Warren underscored her broader call for stronger consumer protections in the crypto sector.
