TL;DR:
- The Senator urges the Treasury and the Fed to refrain from intervening in the market to save large investors.
- Warren warns that a financial rescue could directly benefit companies linked to the Trump family.
- Authorities failed to provide a clear answer on whether taxpayer money will be used for digital assets.
Senator Elizabeth Warren has demanded, in a formal letter to the Treasury Department and the Federal Reserve, that bailouts for crypto billionaires be ruled out. In her message, the lawmaker urges Scott Bessent and Jerome Powell not to use taxpayer money to stabilize the price of Bitcoin.
This scenario unfolds after the market’s prolonged decline since October, which sparked rumors of imminent state intervention. In her writing, Warren indicates that injecting capital into this sector would be an extremely unpopular measure that would only protect the interests of digital financial elites.
She emphasized that, in the current context, any support through direct purchases or liquidity guarantees is unacceptable. Consequently, the debate over fiscal responsibility and crypto market independence has returned to the center of the political agenda in Washington.
Concerns Over Conflicts of Interest and Lack of Transparency
A critical point in Warren’s complaint is the potential connection between a bailout and the company World Liberty Financial, linked to President Trump. The Senator warns that such actions could directly enrich political figures, compromising the neutrality of financial institutions.
Furthermore, the Senator criticized the recent testimony of Secretary Bessent, who did not deny the possibility of using public funds. By evading a clear answer, the Treasury has left the government’s actual plans to face the massive sell-off in a state of uncertainty.
In summary, the legislative pressure seeks to shield public coffers from the extreme volatility of the cryptographic ecosystem. Warren concludes that artificially stabilizing the price of Bitcoin would be a dangerous precedent that regulators must avoid at all costs to protect the national economy.
