Sen. Elizabeth Warren (D-Mass.) urged Treasury Secretary Scott Bessent and Fed Chair Jerome Powell to confirm they won’t use taxpayer money to bail out crypto billionaires as Bitcoin (CRYPTO: BTC) trades down 50% from October highs.
The Bailout Warning
Warren wrote to Bessent and Powell warning that any government intervention to stabilize Bitcoin would “disproportionately benefit crypto billionaires” and could directly enrich President Trump and his family through World Liberty Financial (CRYPTO: WLFI).
The letter highlighted recent losses as Strategy (NASDAQ:MSTR) CEO Michael Saylor’s firm has seen shares fall nearly 20% since year-start.
Meanwhile, Binance (CRYPTO: BNB) founder Changpeng Zhao reportedly lost close to $30 billion and Coinbase (NASDAQ:COIN) CEO Brian Armstrong reportedly lost $7 billion.
Warren pointed to Bessent’s testimony from the February 6 House Financial Services Committee hearing when Rep. Brad Sherman asked directly whether taxpayer money would be deployed into crypto assets.
Bessent didn’t say no—instead responding “we are retaining seized Bitcoin.”
Warren called this a deflection, writing that it’s “deeply unclear” what plans, if any, the government has to intervene in the Bitcoin selloff.
She asked both agencies to rule out direct purchases, guarantees, and liquidity facilities as tools to prop up Bitcoin prices.
The World Liberty Connection
Warren’s letter arrived the same day World Liberty Financial hosted its first World Liberty Forum at Trump’s Mar-a-Lago club in Palm Beach.
The timing underscores her concern that a bailout could enrich Trump’s crypto company.
World Liberty recently sold 173 wrapped Bitcoin to repay $11.75 million in (CRYPTO: USDC) stablecoin debt, avoiding forced liquidation as Bitcoin dropped below $63,000.
Warren noted this transaction highlights how “cascading liquidations of leveraged positions” amplify the selloff.
She warned that both the Treasury and the Fed have authorities empowering them to give financial support to banks and other entities during financial crises.
Warren specifically urged them to “refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires.”
The Retail Protection Call
Beyond the bailout warning, Warren called on federal financial agencies to strengthen protections for retail crypto investors.
In 2025, a record $17 billion was lost or stolen in crypto fraud, according to her letter.
The Treasury Department and Fed did not immediately respond to requests for comment on Warren’s letter.
Image: Shutterstock
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