Elizabeth Warren Raises Alarm Over Potential Crypto Rescue Benefiting Trump's Business Interests
Massachusetts Senator Elizabeth Warren has expressed uncertainty regarding whether the federal government intends to take action amid the ongoing decline in Bitcoin prices.
Elizabeth Warren, who serves as the ranking member on the Senate Banking Committee, has purportedly written correspondence to both Treasury Secretary Scott Bessent and Jerome Powell, the Federal Reserve Chair, calling on them to avoid using public funds to rescue "cryptocurrency billionaires," according to reports.
In her correspondence, Warren cautioned that any such rescue package "would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires," further noting that such action might also "directly enrich President Trump and his family's cryptocurrency company, World Liberty Financial, as reported by CNBC.
The correspondence was dispatched as Bitcoin (BTC) valuations have plummeted more than 50% from their peak recorded in October, reaching a regional bottom of $60,000 on Feb. 6.
Warren's letter was also dispatched on the identical day that World Liberty Financial conducted its inaugural "World Liberty Forum" gathering for cryptocurrency industry leaders and policymakers supportive of the sector at the President's exclusive Mar-a-Lago resort in Palm Beach, Florida.
The US government is retaining seized Bitcoin
In her letter, Senator Warren made reference to the Annual Report of the Financial Stability Oversight Council hearing held on Feb. 4, where Secretary Bessent faced questioning regarding his power to provide financial support to the cryptocurrency sector.
At the hearing, Congressman Brad Sherman posed a question to Bessent about whether the Treasury Department "has the authority to bail out Bitcoin?" or direct financial institutions to purchase Bitcoin or Trumpcoin (TRUMP).
Appearing puzzled, Bessent requested additional clarification regarding the inquiry, responding that "within the context of asset diversification within banks, they could hold many assets."
Sherman additionally voiced apprehension that American taxpayer funds could potentially be allocated to cryptocurrency holdings. "Why would a private bank be your tax dollars?" the Treasury secretary responded.
The Treasury secretary confirmed that "we are retaining seized Bitcoin," clarifying that this does not constitute tax revenue, but rather an "asset of the US government."
Senator Warren claims response was "deflection"
Warren interpreted the interaction in a different light, asserting in her correspondence that Bessent "deflected."
"It's deeply unclear what, if any, plans the US government currently has to intervene in the current Bitcoin selloff," her letter stated.
"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 correspondence reportedly declared.
Cointelegraph attempted to contact both Elizabeth Warren and the Treasury Department for commentary, but did not receive an immediate response. A spokesperson for the Federal Reserve acknowledged receipt of the correspondence but refused to provide comment.