Senator Calls for No Taxpayer-Funded Crypto Bailouts
Senator Elizabeth Warren, a senior member of the Senate Banking Committee, recently wrote a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, urging the government not to use public funds to bail out the cryptocurrency industry in any form.
Warren argued that using taxpayer money to support the crypto sector would effectively transfer wealth from ordinary Americans to crypto billionaires, which she described as both unfair and politically unpopular. She also raised concerns that such bailouts could disproportionately benefit politically connected projects.
Bitcoin Volatility Sparks Policy Debate
The letter was released as Bitcoin’s price fell more than 50% from its all-time high, briefly dipping below the $60,000 mark. Meanwhile, a crypto-focused forum was held at Mar-a-Lago, drawing industry executives and pro-crypto policymakers.
Concerns Over Government Market Intervention
Warren also referenced a recent Financial Stability Oversight Council hearing, where she noted that Secretary Bessent avoided directly answering whether the government would consider bailing out Bitcoin. She reiterated that the government should not intervene in crypto markets through direct purchases, guarantees, or liquidity tools, as it could lead to unfair gains for crypto elites.
- Opposition to taxpayer-funded crypto bailouts
- Warning of benefits skewed toward the wealthy
- Call for policymakers to maintain market neutrality