Senator Elizabeth Warren has urged US Treasury Secretary Scott Bessent and Federal Reserve chair Jerome Powell not to use taxpayer funds to support the crypto industry amid Bitcoin’s recent price decline.
In a letter reported by CNBC, Warren said any bailout “would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires” and warned it could “directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial.”
Her comments come after Bitcoin fell more than 50% from its October all-time high, touching $60,000 on Feb. 6, and on the same day World Liberty Financial hosted a crypto forum at Mar-a-Lago.
During a recent Financial Stability Oversight Council hearing, Congressman Brad Sherman questioned whether the Treasury had authority to bail out Bitcoin or instruct banks to buy digital assets, including Trumpcoin, prompting Bessent to clarify that seized Bitcoin retained by the government is an asset, not taxpayer money.
Warren argued that Bessent’s response amounted to a deflection and said it remains “deeply unclear” whether the government has plans to intervene in the current selloff.
She warned that any intervention through purchases, guarantees or liquidity facilities would disproportionately benefit crypto billionaires rather than the broader public.
The Federal Reserve confirmed it received the letter but declined to comment, while Treasury officials did not immediately respond.
At the time of reporting, Bitcoin price was $67,082.04.