Warren urges no taxpayer-funded crypto bailouts

Elizabeth Warren urges agencies not to use taxpayer funds for crypto bailouts, warning it would benefit wealthy investors and connected firms after Bitcoin's sharp drop.

Senator Elizabeth Warren has issued strong warnings to federal agencies, urging them not to use taxpayer funds to bail out cryptocurrency investors following sharp declines in Bitcoin prices. In formal letters to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren argued that government intervention would unfairly burden taxpayers and mainly benefit wealthy crypto investors and politically connected firms, such as World Liberty Financial. She requested written confirmation that neither agency plans to purchase crypto assets, extend guarantees, or create liquidity facilities to support cryptocurrency prices. Warren stressed that financial markets—not taxpayers—should absorb the losses. Her position highlights ongoing divisions in Washington regarding crypto regulation and the government's role during periods of financial stress. Warren cautioned that any bailout could distort markets and undermine public trust.