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Warren Presses Fed and Treasury to Rule Out Crypto Bailouts as Bitcoin Slumps

Her letter argues taxpayer-funded support would enrich Trump-linked World Liberty Financial.

Overview

  • The senator asked the agencies to categorically reject direct purchases, guarantees, or liquidity facilities that would bolster Bitcoin or crypto investors.
  • A Federal Reserve spokesperson confirmed receipt of the letter and declined comment, while the Treasury Department offered no immediate public response.
  • Warren cited World Liberty Financial’s sale of about 173 wrapped Bitcoin to repay $11.75 million in USDC debt to avoid liquidation when prices fell below $63,000.
  • She pointed to a roughly 50–60% drop in Bitcoin since October 2025 and warned that cascading leveraged liquidations have magnified losses.
  • Her letter also urged stronger protections for retail crypto users, noting reports that $17 billion was lost or stolen in crypto fraud in 2025.