"In a letter sent Wednesday to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, Warren warned that any government intervention could transfer wealth from taxpayers to wealthy crypto investors. "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."
"Warren's letter comes as Bitcoin has declined roughly 50% since reaching a peak in October. She said the sell-off has been worsened by cascading liquidations of leveraged positions, affecting both corporate and individual investors. The Massachusetts senator noted that World Liberty Financial recently sold about 173 wrapped Bitcoin to repay $11.75 million in USDC stablecoin debt, avoiding liquidation as Bitcoin fell below $63,000."
"The letter cited losses among major crypto investors. Michael Saylor's Strategy Inc., a leading corporate holder of Bitcoin, has seen its shares fall nearly 20% since the start of the year. Binance founder Changpeng Zhao reportedly lost close to $30 billion, and Coinbase CEO Brian Armstrong reportedly lost $7 billion, Warren claimed. Warren also highlighted the risks to retail investors. In 2025, U.S. investors lost or had stolen a record $17 billion in cryptocurrency fraud, according to her letter."
The Treasury Department and Federal Reserve were asked to confirm they will not use taxpayer funds to support cryptocurrency investors or firms. The request warned that any government intervention could transfer wealth from taxpayers to wealthy crypto investors and disproportionately benefit the richest market participants, including potentially enriching World Liberty Financial. Bitcoin has declined roughly 50% since its October peak, with cascading liquidations of leveraged positions worsening the sell-off for corporate and individual investors. World Liberty Financial sold about 173 wrapped Bitcoin to repay $11.75 million in USDC stablecoin debt to avoid liquidation as Bitcoin fell below $63,000. Major holders suffered heavy losses and retail investors faced rising risks, with U.S. investors losing or having stolen a record $17 billion in cryptocurrency fraud in 2025. Federal financial agencies were urged to strengthen protections for individual crypto users amid growing market scale and complexity.
Read at Bitcoin Magazine
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