Crypto: Warren Warns Crypto Bailout Would Enrich Trump Family Biz: Report

Senator Elizabeth Warren said it was “deeply unclear” if the US government has plans to intervene in the current Bitcoin selloff.

Senate Banking Committee ranking member Elizabeth Warren has reportedly sent a letter to Treasury Secretary Scott Bessent and Federal Reserve chair Jerome Powell, urging them not to bail out “cryptocurrency billionaires” with taxpayer dollars.

Warren warned that any potential bailout “would be deeply unpopular to transfer wealth from American taxpayers to cryptocurrency billionaires,” adding that it could also “directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial, according to CNBC.

The letter comes as Bitcoin (BTC) prices have fallen more than 50% from their all-time high in October, hitting a local low of $60,000 on Feb. 6.

The letter also came on the same day that World Liberty Financial hosted its first “World Liberty Forum” for crypto executives and pro-industry policymakers at the President’s private Mar-a-Lago club in Palm Beach, Florida.

Senator Warren also referenced the Financial Stability Oversight Council's Annual Report hearing on Feb. 4, during which Secretary Bessent was asked about his authority to bail out the crypto industry.

During the hearing, Congressman Brad Sherman asked Bessent if the Treasury Department “has the authority to bail out Bitcoin?” or instruct banks to buy Bitcoin or Trumpcoin (TRUMP).

A bemused Bessent asked for clarification on the question, stating that “within the context of asset diversification within banks, they could hold many assets.”

Related: Senators ask Bessent to probe $500M UAE stake in Trump-linked WLFI

Sherman also expressed concern that US tax dollars might be invested in crypto assets. “Why would a private bank be your tax dollars?” asked the Treasury secretary.

Source: CoinTelegraph