Senator Elizabeth Warren is urging federal regulators not to use taxpayer money to rescue the cryptocurrency market amid Bitcoin’s sharp price decline. In a letter addressed to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren warned that any potential crypto bailout would primarily benefit wealthy investors — and could even enrich President Donald Trump and his family’s crypto venture.
According to reports, Warren said it remains “deeply unclear” whether the U.S. government is considering intervention as Bitcoin continues to slide. She cautioned that stabilizing the crypto market with public funds would be “deeply unpopular” and amount to transferring wealth from everyday Americans to cryptocurrency billionaires.
Her concerns also extend to Trump-linked crypto firm World Liberty Financial, suggesting that federal action could directly benefit the company.
Bitcoin has dropped more than 50% from its October all-time high, recently falling to around $60,000 before rebounding near $66,700. The ongoing volatility has intensified debate in Washington over whether regulators should step in if market conditions worsen.
The timing of Warren’s letter coincided with World Liberty Financial’s first “World Liberty Forum,” held at Trump’s private Mar-a-Lago club in Palm Beach, Florida. The event brought together crypto executives and policymakers seen as supportive of the industry.
Treasury Response and Bitcoin Seizures Spark Debate
Warren’s letter followed a recent Financial Stability Oversight Council hearing, where Secretary Bessent faced questions about the federal government’s authority to intervene in crypto markets.
During the hearing, Congressman Brad Sherman asked whether the Treasury Department has the authority to bail out Bitcoin or instruct banks to purchase digital assets, including the Trump-themed token TRUMP. Bessent appeared surprised by the framing of the question and clarified that banks can hold a variety of assets as part of their diversification strategies.
Sherman also raised concerns about whether taxpayer funds could be invested in cryptocurrencies. In response, Bessent stated that the government is retaining seized Bitcoin as an asset, emphasizing that it is not taxpayer money but property obtained through enforcement actions.
Warren, however, characterized the Treasury’s response as a deflection. In her letter, she stressed that any government move to stabilize Bitcoin — whether through direct purchases, guarantees, or liquidity programs — would disproportionately benefit wealthy crypto holders.
She concluded by urging regulators to refrain from intervening in ways that would “prop up Bitcoin” or shift financial risk from private investors to American taxpayers.
