Senate Banking, Housing, and Urban Affairs Committee Ranking Member Elizabeth Warren sent a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell seeking written confirmation that neither the Department of the Treasury nor the Federal Reserve will use taxpayer-backed tools to support the Bitcoin market or crypto asset intermediaries following Bitcoin’s recent crash. The letter points to Treasury’s Exchange Stabilization Fund and the Federal Reserve’s Section 13(3) emergency lending facilities as authorities that have been used to support financial markets in prior crises, and calls on both agencies to refrain from “direct purchases, guarantees, or liquidity facilities” that could transfer value from taxpayers to “crypto billionaires.” Warren cited Bitcoin’s loss of more than USD 2 trillion, or about 50%, since its October 2025 peak and argued that any intervention to stabilize Bitcoin would disproportionately benefit highly compensated crypto investors, while urging stronger safeguards for retail crypto investors amid reported record losses of USD 17 billion to crypto scams and fraud last year. Warren requested a written response by February 27, 2026.
U.S. Senate Committee on Banking, Housing and Urban Affairs 2026-02-19
U.S. Senate Committee on Banking, Housing and Urban Affairs ranking member presses Treasury and Federal Reserve to rule out taxpayer-funded bailout for crypto investors
Senate Banking Committee Ranking Member Elizabeth Warren urged Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell to confirm they won't use taxpayer-backed tools to support Bitcoin or crypto intermediaries after Bitcoin's crash. Warren highlighted potential misuse of the Treasury’s Exchange Stabilization Fund and the Federal Reserve’s Section 13(3) facilities, emphasizing intervention would benefit wealthy crypto investors and called for stronger protections for retail investors amid significant crypto scam losses.