U.S. Senator Elizabeth Warren, a Democrat from Massachusetts, referred to as on the Treasury Division and the Federal Reserve to substantiate that they won’t use taxpayer funds to assist cryptocurrency traders or corporations.
In a letter despatched Wednesday to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren warned that any authorities intervention might 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 means of direct purchases, ensures, or liquidity services,” Warren wrote.
She argued {that a} bailout would disproportionately profit the wealthiest gamers within the cryptocurrency market and will immediately enrich President Donald Trump by means of his household’s firm, World Liberty Financial.
Warren’s letter comes as Bitcoin has declined roughly 50% since reaching a peak in October. She mentioned 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 offered 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 almost 20% for the reason that begin of the yr. 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 response to 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 immediately however acknowledged that the Treasury was “retaining seized Bitcoin.” Warren described this response as a deflection and mentioned 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 mentioned it plans to reply. The Treasury Division didn’t instantly remark.
Bitcoin was buying and selling just below $67,000 Wednesday, in response to Bitcoin Journal knowledge.
