Senator Elizabeth Warren has made her position clear by opposing any potential bailout for Bitcoin during its recent market downturn. In a letter addressed to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, she expressed her concerns that utilizing taxpayer funds to support Bitcoin would primarily advantage affluent investors and crypto insiders.
Warren”s remarks reflect a broader sentiment within Washington, indicating a lack of support for treating cryptocurrency markets similarly to traditional banking systems during financial crises. Her comments emphasize the ongoing debates and divisions surrounding crypto regulation in the United States.
As Bitcoin has experienced a significant price drop, falling more than 50% from its all-time high in October, the cryptocurrency has recently hovered around $60,000, raising alarms regarding market stability. On the same day Warren sent her letter, the World Liberty Financial organization convened its inaugural “World Liberty Forum” at Trump”s Mar-a-Lago club in Florida, assembling crypto executives and policymakers advocating for the sector.
During a recent meeting of the Financial Stability Oversight Council, Congressman Brad Sherman inquired about the Treasury Department”s authority to bail out Bitcoin or prompt banks to invest in crypto assets, including the Trump-themed token TRUMP. Secretary Bessent responded by stating that banks have the capacity to diversify their asset holdings. He further clarified that the U.S. government currently possesses seized Bitcoin, categorizing it as government-owned property rather than taxpayer investments in crypto.
In contrast, Warren challenged Bessent”s assertion, highlighting that the Treasury Secretary did not provide a clear answer regarding the government”s intentions in light of the ongoing Bitcoin selloff. She contended that any direct intervention, such as purchases or guarantees to support Bitcoin prices, would disproportionately benefit wealthy investors, urging regulators to refrain from actions that would stabilize prices at the public”s expense.
To date, neither the Treasury Department nor the Federal Reserve has announced any measures aimed at bailing out Bitcoin. The Federal Reserve acknowledged receipt of Warren”s letter but has not issued further comments.
