Warren urges Fed and Treasury to reject crypto billionaire bailout, fearing Trump?

Jakarta, Pintu News – United States Senator Elizabeth Warren has reportedly sent an official letter to Treasury Secretary Scott Bessent and Federal Reserve Chairman Jerome Powell regarding the current digital asset market turmoil.

In the letter, Warren urged the two top financial authorities not to use taxpayer funds to provide bailouts to “crypto billionaires”. The move comes in response to fears of government intervention to stabilize the price of Bitcoin (BTC), which is experiencing a significant drop in the global market.

Warren’s Concerns on the Use of Tax Funds

Senator Warren warned that any form of government assistance to the digital asset industry would be highly unpopular with the public as it involves a transfer of wealth from American taxpayers to billionaires. According to a report from CNBC, Warren also highlighted a potential conflict of interest where such aid could directly enrich President Donald Trump’s personal assets. Specifically, she referred to World Liberty Financial, a crypto company linked to President Trump’s family, as one of the parties that might benefit indirectly.

This warning letter comes just as the price of Bitcoin (BTC) has slumped more than 50% from its all-time high reached last October. On February 6, the price of the number one digital asset even touched its lowest local level of $60,000 (around Rp1,016,220,000 at an exchange rate of Rp16,937). Warren believes that government intervention to stabilize the price of Bitcoin will only disproportionately benefit large holders of crypto assets or “crypto billionaires”.

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Treasury and Federal Reserve response

During a Senate Banking Committee hearing on February 4, Treasury Secretary Scott Bessent was asked by Congressman Brad Sherman about his authority to bailout the crypto industry. Bessent stated that in the context of asset diversification, banks are allowed to hold many types of assets, but he questioned why private banks are directly linked to tax funds. Bessent also confirmed that the government is currently holding confiscated Bitcoin, which is a US government asset and not tax money.

Nonetheless, Warren dismissed Bessent’s answer as evasive and stated that the government’s plans to intervene in Bitcoin’s price decline are currently unclear. Warren emphasized that institutions should refrain from attempting to “prop up” the price of Bitcoin through direct purchases, guarantees, or liquidity facilities. A Federal Reserve spokesperson confirmed receipt of the letter but declined to comment further on the Senator’s demands.

Also Read: Shocking Prediction: Bitcoin (BTC) Will Take 20 Years to Beat Gold, Says Willy Woo

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• Cointelegraph. Warren warns crypto bailout would enrich Trump family biz: Report. Accessed February 19, 2026.