Elizabeth Warren, the ranking member of the Senate Banking Committee, has reportedly sent a letter to Scott Bessent and Jerome Powell, urging them not to use taxpayer funds to bail out “cryptocurrency billionaires.”
In the letter, Warren warned that any such rescue “would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires,” and could also “directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial,” according to CNBC.
The correspondence comes as Bitcoin prices have dropped more than 50% from their October all-time high, falling to a local low of $60,000 on Feb. 6. It was also sent on the same day that World Liberty Financial hosted its inaugural “World Liberty Forum” for crypto executives and industry-friendly policymakers at the president’s private Mar-a-Lago in Palm Beach, Florida.
US government retaining seized Bitcoin
Warren’s letter also referenced the Financial Stability Oversight Council’s annual report hearing on Feb. 4, where Bessent was questioned about whether the Treasury has the authority to support the crypto industry during market turmoil.
During the hearing, Congressman Brad Sherman asked Bessent whether the Treasury Department “has the authority to bail out Bitcoin” or direct banks to purchase Bitcoin or Trumpcoin (TRUMP). Bessent responded by seeking clarification, saying that within the context of bank asset diversification, institutions are permitted to hold a range of assets.
When Sherman raised concerns about taxpayer exposure to crypto, Bessent pushed back, asking, “Why would a private bank be your tax dollars?” He added that “we are retaining seized Bitcoin,” emphasizing that those holdings are not taxpayer funds but assets of the US government.
Warren says response was a deflection
Warren characterized Bessent’s answers differently in her letter, writing that he had “deflected” from the core issue.
“It’s deeply unclear what, if any, plans the US government currently has to intervene in the current Bitcoin selloff,” she wrote.
“Ultimately, any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires.”
“Your agencies must refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires through direct purchases, guarantees, or liquidity facilities,” the letter reportedly stated.
