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Warren Presses Treasury and Fed to Rule Out Bitcoin Bailouts

Her letter asks for a categorical no to purchases, guarantees or liquidity facilities that shift losses to taxpayers.

Overview

  • The Federal Reserve confirmed receipt of Senator Elizabeth Warren’s request, while the Treasury Department offered no immediate public response.
  • Bitcoin is down roughly 50% from its October peak, with cascading liquidations intensifying stress across leveraged positions.
  • Warren cited World Liberty Financial’s reported sale of about 173 wrapped Bitcoin to repay $11.75 million in USDC, avoiding liquidation as prices fell below $63,000.
  • She urged regulators to strengthen protections for retail investors, pointing to a record $17 billion lost or stolen in crypto fraud during 2025.
  • Treasury Secretary Scott Bessent previously told Congress the government is “retaining seized bitcoin” when pressed on intervention, and Binance’s Changpeng Zhao said crypto does not need a bailout.