Senator Warren Urges Fed and Treasury to Reject Bailouts for Crypto Billionaires Amid Bitcoin Sell-Off
February 18, 2026, Washington D.C. — Senator Elizabeth Warren has publicly called on the Treasury Department and the Federal Reserve to firmly reject any use of taxpayer funds to bail out cryptocurrency billionaires or highly leveraged crypto investors. The Massachusetts Democrat made the call amid a prolonged plunge in bitcoin’s value, which has fallen by approximately 50% since reaching a peak last October.
In a strongly worded letter addressed to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Senator Warren emphasized the unpopularity and ethical issues surrounding potential government intervention to rescue wealthy players in the crypto market. She warned that such bailouts would not only be deeply unpopular among American taxpayers but could also inadvertently enrich former President Donald Trump and his family’s cryptocurrency company, World Liberty Financial.
“Any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires,” Warren wrote, urging federal authorities to refrain from propping up bitcoin or transferring wealth to wealthy crypto investors through direct purchases, guarantees, or liquidity facilities.
The letter comes at a time when bitcoin continues to experience volatility, with cascading liquidations of leveraged positions exacerbating the sell-off. Warren noted that World Liberty Financial, co-founded by Donald Trump, sold approximately 173 wrapped Bitcoins to repay $11.75 million in USDC stablecoin debt, effectively avoiding liquidation as bitcoin prices fell below $63,000. She also referenced significant losses suffered by other prominent figures in the crypto space, including Michael Saylor’s company Strategy Inc., which has seen shares drop nearly 20% since the start of 2026. Binance founder Changpeng Zhao reportedly lost close to $30 billion, while Coinbase’s Brian Armstrong faced losses around $7 billion.
Senator Warren also highlighted the vulnerabilities faced by retail investors in the cryptocurrency market, pointing out that in 2025, a record $17 billion was lost or stolen due to crypto-related fraud. She stressed the imperative for federal financial agencies to strengthen protections for everyday crypto investors.
The senator’s letter also raised concerns about the clarity of the government’s stance on crypto bailouts. During a February 6 hearing before the House Financial Services Committee, Treasury Secretary Scott Bessent was asked whether taxpayer money would be used to support crypto assets. Rather than issuing a direct denial, Bessent responded that the Treasury was “retaining seized bitcoin,” leaving uncertainty about any plans to intervene in the ongoing bitcoin downturn.
Responding to Warren’s letter on Thursday, a spokesperson for the Federal Reserve acknowledged receipt and indicated they plan to reply; the Treasury Department and Fed have yet to issue formal comments.
The demand for clarity and a firm commitment against bailouts coincides with the inaugural World Liberty Forum hosted by Trump’s crypto company at the Mar-a-Lago club in Palm Beach, Florida. The event attracted business leaders amid ongoing market turbulence.
As bitcoin and the wider cryptocurrency market face continued instability, Senator Warren’s message underscores a growing call for accountability, transparency, and protections in an increasingly influential yet volatile sector.
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