Advertise
- Debashree Patra
Debashree Patra
- Reviewed by:
Nidhi KolhapurNidhi is a Certified Digital Marketing Executive and Passionate crypto Journalist covering the world of alternative currencies. She shares the latest and trending news on Cryptocurrency and Blockchain.
- Feb 19, 2026 06:55 UTC
-
Elizabeth Warren Opposes Bitcoin Bailout as Price Falls 50%
Elizabeth Warren opposes a Bitcoin bailout, warning taxpayer funds would mainly benefit wealthy crypto investors during the market slump.
Warren urges regulators to avoid propping up Bitcoin prices as it falls 50%, saying markets—not taxpayers—should absorb losses.
Senator Elizabeth Warren has strongly opposed any bailout for Bitcoin. In a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell, she warned that using taxpayer money to support Bitcoin would mainly help wealthy investors and crypto insiders.
Reports also say she suggested that such action could benefit politically connected crypto ventures, including World Liberty Financial. Her position shows that many in Washington do not support treating crypto like traditional banks during times of financial stress.
Her comments also highlight ongoing divisions over crypto regulation. Instead of backing price support measures, Warren’s message suggests that policymakers may allow the market to adjust on its own, even if prices fall further.
Bitcoin’s Price Drop Raises Concerns
Warren’s letter comes as Bitcoin has dropped more than 50% from its all-time high in October. The cryptocurrency recently fell to around $60,000, raising fresh concerns about market stability. On the same day Warren sent her letter, World Liberty Financial hosted its first “World Liberty Forum” at Trump’s Mar-a-Lago club in Florida, bringing together crypto executives and policymakers who support the industry.
Debate Over Government Authority
At a recent Financial Stability Oversight Council hearing, Congressman Brad Sherman asked whether the Treasury Department has the authority to bail out Bitcoin or encourage banks to buy crypto assets, including the Trump-themed token TRUMP.
Secretary Bessent responded that banks can hold different assets as part of diversification. He also said the US government is holding seized Bitcoin, describing it as government-owned property rather than taxpayer funds being invested in crypto. When Sherman raised concerns about tax dollars being used, Bessent said the seized Bitcoin does not involve taxpayer money.
Warren Criticizes Treasury Response
Warren disagreed with Bessent’s explanation. In her letter, she said the Treasury secretary avoided directly answering whether the government plans to step in during the current Bitcoin selloff. She argued that direct purchases, guarantees, or special lending programs to support Bitcoin would mostly benefit wealthy investors. Warren urged regulators not to take steps that would prop up prices at public expense.
So far, neither the Treasury Department nor the Federal Reserve has announced any bailout measures. The Federal Reserve confirmed it received Warren’s letter but did not provide further comment.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
She argues a bailout would mainly benefit crypto insiders and wealthy holders, not everyday taxpayers, during market volatility.
There’s no clear authority to directly bail out Bitcoin. Lawmakers are debating whether Treasury even has that power.
No. Officials say seized Bitcoin held by the government is treated as recovered property, not taxpayer-funded investment.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author's own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Yes 
No 
