U.S. Senator Says No Special Favors for Trump Family Businesses, Opposes Crypto Bailout

▲ Elizabeth Warren, Bitcoin (BTC), Donald Trump / ChatGPT-generated image

U.S. Senator Elizabeth Warren has issued a strong warning amid the sharp decline in Bitcoin, stating that the government must never use taxpayer money to bail out cryptocurrency billionaires.

According to cryptocurrency media outlet Cointelegraph on February 19 (local time), Senator Warren recently sent letters to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell urging them not to use taxpayer funds to rescue the digital asset industry. In the letters, Warren criticized the use of American taxpayers’ hard-earned money to transfer wealth to crypto billionaires, saying such actions would not receive public support. She particularly warned that any bailout could ultimately benefit World Liberty Financial, a crypto company operated by U.S. President Donald Trump and his family.

The letters were sent as Bitcoin (BTC) plunged more than 50% from its all-time high recorded last October, retreating to the $60,000 range on February 6. Senator Warren pointed out that it remains unclear whether the government has plans to intervene to calm the Bitcoin sell-off, arguing that any intervention aimed at stabilizing the market would ultimately deliver massive gains only to crypto whales. She emphasized that both the Treasury and the Federal Reserve should refrain from propping up Bitcoin prices through direct purchases, guarantees, or liquidity facilities.

Earlier, during the Financial Stability Oversight Council (FSOC) annual report hearing held on February 4, Secretary Bessent faced questions regarding the government’s authority to bail out the crypto industry. Representative Brad Sherman asked whether the Treasury had the authority to rescue Bitcoin or instruct banks to purchase Bitcoin or TRUMP coin. In response, Bessent stated that while banks may hold various assets for diversification purposes, seized Bitcoin constitutes government property and is unrelated to taxes. He avoided directly addressing the concerns raised by Senator Warren.

Senator Warren characterized Bessent’s response as evasive, criticizing the continued uncertainty surrounding potential government intervention. She made it clear that even amid extreme market fear highlighted by analytics firms such as Santiment, the cryptocurrency market must recover on its own rather than rely on government support. She argued that internal market issues, including technical controversies surrounding the XRP Ledger and capital inflows and outflows through spot Bitcoin ETFs, should be left to market principles.

Ultimately, Warren’s move is interpreted as an effort to put the brakes on the Trump administration’s pro-crypto policy stance and to block potential ties between the crypto industry and political circles. As Bitcoin continues to fluctuate precariously around the $67,000 level, Warren’s firm opposition to bailouts is expected to further intensify partisan clashes over the future regulatory environment for digital assets. The crypto industry now faces the critical task of restoring market confidence on its own rather than relying on government policy support.

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