U.S. Senator Elizabeth Warren, a Democrat from Massachusetts, known as on the Treasury Division and the Federal Reserve to substantiate that they won’t use taxpayer funds to assist cryptocurrency traders or companies.
In a letter despatched Wednesday to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren warned that any authorities intervention may switch wealth from taxpayers to rich crypto traders.
“Your companies should chorus from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires by way of direct purchases, ensures, or liquidity amenities,” Warren wrote.
She argued {that a} bailout would disproportionately profit the wealthiest gamers within the cryptocurrency market and will straight enrich President Donald Trump by way of his household’s firm, World Liberty Monetary.
Warren’s letter comes as Bitcoin has declined roughly 50% since reaching a peak in October. She stated the sell-off has been worsened by cascading liquidations of leveraged positions, affecting each company and particular person traders.
The Massachusetts senator famous that World Liberty Monetary just lately bought about 173 wrapped Bitcoin to repay $11.75 million in USDC stablecoin debt, avoiding liquidation as Bitcoin fell beneath $63,000.
Warren: Crypto and bitcoin retail is in danger
The letter cited losses amongst main crypto traders. Michael Saylor’s Technique Inc., a number one company holder of Bitcoin, has seen its shares fall practically 20% for the reason that begin of the 12 months. Binance founder Changpeng Zhao reportedly misplaced near $30 billion, and Coinbase CEO Brian Armstrong reportedly misplaced $7 billion, Warren claimed.
Warren additionally highlighted the dangers to retail traders. In 2025, U.S. traders misplaced or had stolen a report $17 billion in cryptocurrency fraud, in accordance with her letter.
She urged federal monetary companies to strengthen protections for particular person crypto customers, citing the rising scale and complexity of digital asset markets.
The letter referenced a February 6 Home Monetary Companies Committee listening to, the place Rep. Brad Sherman requested Secretary Bessent whether or not taxpayer cash might be deployed into crypto property. Bessent didn’t reply straight however acknowledged that the Treasury was “retaining seized Bitcoin.” Warren described this response as a deflection and stated it left unclear whether or not the federal government has any plans to intervene within the Bitcoin sell-off.
Warren reminded the Treasury and the Fed that each companies have broad authorities to supply monetary assist to banks and different entities throughout monetary crises. She argued that these instruments shouldn’t be used to stabilize Bitcoin or different digital property, which she described as high-risk investments primarily benefiting rich traders.
The Fed confirmed receipt of Warren’s letter and stated it plans to reply. The Treasury Division didn’t instantly remark.
Bitcoin was buying and selling slightly below $67,000 Wednesday, in accordance with Bitcoin Journal information.
