Massachusetts Senator Elizabeth Warren has called on the US Treasury Department and Federal Reserve to explicitly pledge they will not use public funds to rescue cryptocurrency investors or companies. In a letter released this week, Warren emphasized that any such intervention would effectively redirect taxpayer money to large crypto stakeholders, challenging the principle of financial fairness.
Bitcoin’s Slide Raises Public Scrutiny
Warren’s warning follows a steep decline in Bitcoin’s value, which has plummeted by nearly half since October. This sharp downturn has been exacerbated by a wave of forced liquidations, with both individual and institutional investors feeling the impact. As a result, the recent losses sustained by major crypto firms have moved further into the public spotlight, fueling debate on whether the government should intervene in the sector.
Major Firms and Retail Traders Face Losses
In her statement, Warren highlighted that companies with significant Bitcoin holdings—such as Michael Saylor’s firm—saw their stock prices tumble by almost 20% since the start of the year. Wealthy industry leaders like Binance founder Changpeng Zhao and Coinbase CEO Brian Armstrong have also suffered billions in personal losses. Recent reports underscore the problem’s scale, estimating that US investors experienced roughly $17 billion in losses or fraud linked to crypto assets in 2025.
One high-profile name caught up in the turmoil is World Liberty Financial, owned by former President Donald Trump’s family. As Bitcoin dropped below $63,000, the company sold off 173 wrapped Bitcoins to pay down USDC-denominated debt, averting a looming liquidation event.
According to Warren, these company moves risk setting a precedent where top-tier investors could uniquely benefit from any government backing. She reiterated the need for stronger consumer protections to prevent public support from being funneled toward safeguarding major institutional players.
“Your agencies must not facilitate asset transfers by supporting Bitcoin or providing direct purchases, guarantees, or liquidity to crypto billionaires using public resources,” Warren urged in her letter.
At a House hearing in February, Treasury Secretary Scott Bessent was asked whether the government would consider investing in crypto assets. Bessent sidestepped a direct answer, stating only that the Treasury was holding onto its existing Bitcoin. Warren found this response vague and argued that the administration’s stance on possible intervention remains unclear.
Warren underscored in her letter that the Treasury and Federal Reserve possess broad authorities to support institutions during financial crises, but warned these powers should not extend to risky digital assets. She stressed that crisis tools must not turn into a safety net protecting the fortunes of large-scale crypto investors.
A spokesperson for the Federal Reserve confirmed that the agency had received Warren’s letter and was preparing a response. Meanwhile, the Treasury Department declined to comment immediately. As the article went to print, Bitcoin was trading just below $67,000.
