U.S. Senator Elizabeth Warren has directed the Treasury Department and Federal Reserve not to use taxpayers’ money to support cryptocurrency investors or companies. She warned that government intervention would transfer taxpayers’ wealth into the hands of wealthy crypto investors. In a letter, Warren urged government agencies to avoid direct purchases, guarantees, or liquidity facilities aimed at propping up Bitcoin or other crypto assets. She cautioned that such actions would benefit the market’s richest players and could financially aid the company World Liberty Financial, linked to the U.S. president’s family.
The letter comes amid Bitcoin’s price drop by nearly half since its October peak, a decline intensified by cascading liquidations of leveraged positions affecting both corporate and individual investors. Warren noted that World Liberty Financial recently sold 173 Rapid Bitcoins to repay an $11.75 million USDC stablecoin loan, thereby avoiding liquidation after Bitcoin’s price fell below $63,000.
She also highlighted losses suffered by major crypto investors, including a roughly 20% decline in shares of Michael Saylor’s company Strategy Inc., a $30 billion loss by Binance founder Changpeng Zhao, and a $7 billion loss by Coinbase CEO Brian Armstrong. Warren pointed out risks for retail investors as well, noting that Americans lost or had $17 billion stolen in crypto fraud in 2025. She called on federal financial regulators to strengthen protections for individual crypto users amid the growing complexity and size of digital asset markets.
This letter followed a recent congressional hearing where the Treasury Secretary avoided directly answering whether taxpayer funds could be invested in crypto assets, stating only that the Treasury holds “seized Bitcoin.” Warren criticized this evasiveness and emphasized the need for clarity on government intervention. She reminded the Treasury and Federal Reserve that while they have broad authority to assist banks and other institutions during financial crises, they should not use it to stabilize Bitcoin or other digital assets, which she described as risky investments primarily benefiting wealthy investors.
The Federal Reserve has acknowledged receipt of Warren’s letter and indicated it will respond, while the Treasury Department has not yet commented. Meanwhile, Bitcoin is trading near $67,000.
Source: bitcoinmagazine
