U.S. Senator Elizabeth Warren has called on the Treasury Department and Federal Reserve to avoid using taxpayer funds to stabilize the cryptocurrency market amid Bitcoin's sharp decline. In a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, she warned that such intervention would benefit wealthy investors at public expense. Warren emphasized stronger protections for retail crypto users instead.
On February 19, 2026, Senator Elizabeth Warren, a Democrat from Massachusetts and ranking member of the Senate Banking Committee, sent a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell. She urged them to rule out any taxpayer-funded support for cryptocurrency investors or firms during the ongoing Bitcoin sell-off.
Bitcoin has fallen roughly 50% since its October peak, trading around $66,000 to $67,000 in recent days, according to reports from Bitcoin Magazine and American Banker. The decline has triggered liquidations of leveraged positions, impacting corporate and individual holders. Warren noted that World Liberty Financial, linked to President Donald Trump's family, sold about 173 wrapped Bitcoin to repay $11.75 million in USDC stablecoin debt as prices dipped below $63,000.
The senator highlighted losses among major players, including a nearly 20% drop in shares of Michael Saylor's Strategy Inc. since the start of the year. She cited reports of Binance founder Changpeng Zhao losing close to $30 billion and Coinbase CEO Brian Armstrong losing $7 billion. Warren also pointed to risks for retail investors, with $17 billion lost or stolen in U.S. cryptocurrency fraud in 2025, including over $333.5 million from Bitcoin ATM scams between January and November.
"Your agencies must refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires through direct purchases, guarantees, or liquidity facilities," Warren wrote. She argued that bailout tools, such as the Treasury's Exchange Stabilization Fund or the Fed's 13(3) lending facilities, should not support high-risk digital assets.
The letter referenced a February 6 House Financial Services Committee hearing, where Representative Brad Sherman asked Bessent if taxpayer money would go to crypto assets. Bessent responded by stating the Treasury was retaining seized Bitcoin, which Warren described as a deflection. She called for a clear commitment against intervention and pushed for enhanced consumer protections and regulation of the digital asset market.
The Federal Reserve confirmed receipt of the letter and plans to respond, while the Treasury Department did not immediately comment. Warren stressed focusing on safeguards for individual holders rather than rescuing billionaire investors, noting President Trump's potential personal benefit through World Liberty Financial.
