Warren: 'Crypto bailout would benefit the Trump family'…Urges Treasury and Fed to refrain from intervention

Elizabeth Warren, the ranking member of the U.S. Senate Banking Committee, urged the Treasury Department and the Federal Reserve to refrain from intervening in the crypto-asset market, warning that government action could benefit businesses tied to the Trump family.

According to Cointelegraph on the 19th (local time), Sen. Warren sent a letter to Treasury Secretary Scott Bessent and Fed Chair Jerome Powell, expressing concern that “using taxpayer money to bail out crypto billionaires would be deeply unpopular.” She argued that government intervention could provide a direct benefit to World Liberty Financial, a crypto company linked to President Donald Trump and his family.

Warren also cited a Q&A from the Financial Stability Oversight Council’s annual report hearing on Feb. 4. At the time, Rep. Brad Sherman asked whether the Treasury had the authority to bail out Bitcoin or to direct banks to purchase Bitcoin or Trumpcoin.

Secretary Bessent replied that, in the context of banks’ asset diversification, they can hold a variety of assets, while noting that the government holds Bitcoin it has seized. He said the Bitcoin in question was not funded by taxpayers but is an asset of the U.S. government.

However, Warren characterized this as an “evasive answer,” pointing out that “it is unclear whether the government plans to intervene in the current Bitcoin selloff.” She added that “government intervention to stabilize the price of Bitcoin would ultimately provide disproportionate benefits to crypto billionaires.”

She urged that the Treasury and the Fed should not prop up Bitcoin prices in any way, including through direct purchases, guarantees, or liquidity support.