Last updated on March 10th, 2026 at 11:55 am
Senate Banking Committee ranking member Elizabeth Warren has reportedly pressed US financial authorities to rule out any government intervention aimed at stabilizing the cryptocurrency market, cautioning against what she described as a potential bailout for “crypto billionaires.”
Sen. Warren tells Fed and Treasury: No bailout for crypto billionaires https://t.co/tbh2yHaU5q
— CNBC (@CNBC) February 18, 2026
In a letter sent to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren warned that using taxpayer funds to support digital assets would be politically unpopular and financially unjustified. According to CNBC, she argued that such a move could end up enriching wealthy crypto investors and potentially benefit President Donald Trump through his family-linked crypto venture, World Liberty Financial.
Her comments come as Bitcoin has declined sharply from its October peak, recently dropping to around $60,000 after losing more than half its value from its all-time high.
Lawmakers question Treasury’s authority over crypto intervention
Warren’s letter followed a February 4 hearing on the Financial Stability Oversight Council’s annual report, where lawmakers questioned whether the Treasury Department could intervene in the crypto market.
During the session, Representative Brad Sherman asked whether the Treasury had the authority to bail out Bitcoin or direct banks to purchase digital assets, including the memecoin TRUMP.
Bessent appeared puzzled by the line of questioning, responding that banks, in the context of asset diversification, can hold a variety of assets. When pressed about whether taxpayer money could be funnelled into crypto markets, he pushed back, asking why a private bank’s holdings would be considered taxpayer funds.
The Treasury secretary also clarified that the US government is currently retaining seized Bitcoin as an asset, emphasizing that those holdings do not constitute taxpayer money but rather property already in federal possession.
Warren warns against ‘propping up’ Bitcoin
Warren, however, interpreted Bessent’s responses as evasive. In her letter, she said it remains unclear whether federal agencies are considering steps to stabilize Bitcoin amid the downturn.
She argued that any effort, whether through direct purchases, guarantees, or special liquidity facilities, would disproportionately benefit large crypto holders.
“Ultimately, any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires,”
she wrote, urging Treasury and the Federal Reserve to avoid policies that could transfer wealth from taxpayers to wealthy investors.
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