Senator Elizabeth Warren of Massachusetts insisted that the US government should not use taxpayer money to bail out crypto millionaires or highly leveraged investors.
Her letter to Treasury Secretary Scott Bessent and Federal Reserve Chairman Jerome Powell comes as Bitcoin prices continue to plummet, falling about 50% since their October highs.
Warren warned that any government intervention would not only be seen as a transfer of wealth from the public to crypto millionaires, but could also potentially benefit President Donald Trump’s family through their crypto company, World Liberty Financial.
She stressed that while the Treasury and the Fed have the authority to support banks and other financial entities during a crisis, it is unclear whether the government has any plans to intervene in the current Bitcoin slump.
Warren insisted that any efforts to stabilize the crypto market would unfairly benefit crypto millionaires and called on both agencies not to make direct purchases, provide guarantees, or use liquidity facilities to support Bitcoin.
Warren's letter was issued on the same day that World Liberty Financial held its first business forum at Trump's Mar-a-Lago club in Florida.
He also noted that the Bitcoin price decline was accelerated by a massive sell-off by leveraged investors, including World Liberty Financial's transaction to sell 173 wrapped Bitcoins to pay off $11.75 million in USDC stablecoin debt.
Other crypto millionaires have also suffered significant losses, including Michael Saylor of Strategy Inc., Changpeng Zhao of Binance, and Brian Armstrong of Coinbase.
Warren warned that in addition to rejecting bailouts for crypto millionaires, federal financial agencies must also strengthen protections for retail investors, especially since crypto fraud records in 2025 have resulted in losses of nearly $17 billion.
