Senator Warren’s Calls Heighten Crypto Bailout Debate

Massachusetts Senator Elizabeth Warren is turning up the heat on the US Treasury and the Federal Reserve, urging them to refrain from using taxpayer money to bail out cryptocurrency investors and companies. In her recent letter, Warren states that such actions would skew financial equity by funneling public funds to major crypto stakeholders.

Bitcoin’s Value Plummets, Raising Concerns

Concerns are amplified as Bitcoin‘s value has dramatically decreased by approximately 50% since October. The steep decline triggered forced liquidations, affecting both individual and institutional players. The losses of big-name crypto companies have sparked public debates over potential government intervention, adding pressure on authorities to clarify their policies.

How Are Industry Giants and Traders Coping?

The financial hit is widespread: firms heavily invested in Bitcoin, like Michael Saylor’s company, saw shares fall nearly 20% this year. Industry titans, including Binance founder Changpeng Zhao and Coinbase CEO Brian Armstrong, have faced personal financial setbacks in the billions. Recent analyses highlight that US-based investors incurred an estimated $17 billion in crypto-related frauds and losses in 2025.

Among those affected is World Liberty Financial, linked to former President Trump’s family. As Bitcoin dipped under $63,000, the company unloaded 173 wrapped Bitcoins to address looming debt obligations in USDC, narrowly avoiding liquidation.

Warren warns that such moves by companies risk establishing a precedent where elite investors stand to uniquely gain from governmental interventions. She appeals for stronger consumer protections to prevent public aid from disproportionately favoring big crypto players.

“Your agencies must not facilitate asset transfers by supporting Bitcoin or providing direct purchases, guarantees, or liquidity to crypto billionaires using public resources,” Warren urged in her letter.

In a House session in February, Treasury Secretary Scott Bessent faced questions on the government’s potential crypto investments. Bessent deflected with a non-committal statement, merely confirming the Treasury’s hold on existing Bitcoin assets. Warren criticized the lack of clarity and pushed for a definitive stance on the issue.

Warren emphasized the significant policy levers available to the Treasury and Federal Reserve to manage financial crises but cautioned against extending these to volatile digital markets. She warned that crisis intervention tools should not become a safety net for large crypto investors.

The Federal Reserve, acknowledging Warren’s correspondence, is drafting a reply. However, the Treasury has yet to issue an immediate response. As of press time, Bitcoin was priced just shy of $67,000.