Warren: No Taxpayer Bailouts for Crypto Billionaires (Not Even a Cup of Tea)

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Elizabeth Warren, with the subtlety of a sledgehammer wrapped in a nebulously worded letter, is insisting that U.S. regulators not use taxpayer money to rescue cryptocurrency billionaires after a market crash that somehow managed to lose $2 trillion-approximately the GDP of a small, slightly embarrassed country.

Warren Demands No Bailout for Bitcoin Billionaires

Concerns about federal intervention in cryptocurrency markets, already a topic as contentious as a heated debate about the correct way to make a cup of tea, intensified when U.S. Senator Elizabeth Warren (D-Mass.) sent a letter to Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell on Feb. 18. In it, she requested-very politely, almost apologetically-that they confirm taxpayer funds would not be used to “bail out cryptocurrency billionaires and other highly leveraged crypto investors.” Her tone was one of urgent concern, as though the very fabric of fiscal responsibility might unravel if such a thing were allowed to happen.

“I write today to request written confirmation that neither the Department of the Treasury (Treasury) nor the Federal Reserve (Fed) will use taxpayer dollars to bail out cryptocurrency billionaires and other highly leveraged cryptocurrency investors,” she wrote, as if drafting a particularly stern thank-you note.

The letter went on to point out that bitcoin had lost more than $2 trillion-“or about 50%” in the language of percentages, which is less alarming than saying “a financial implosion that makes a black hole look like a gentle breeze.” Warren warned against federal action that might “disproportionately benefit wealthy holders,” which is code for “don’t let the rich get richer while the rest of us stare into the abyss of inflation.” She emphasized that any government response must “center around bolstering safeguards for individual crypto holders,” which is a fancy way of saying “protect the little guy from people who clearly didn’t read the fine print.”

The letter also noted that the Treasury and Fed have access to tools like the Exchange Stabilization Fund and the 13(3) emergency lending authority-financial instruments so powerful they could probably stabilize entire economies, if anyone knew how to use them. Warren argued these tools should not be deployed to “stabilize bitcoin prices or assist crypto intermediaries,” which is a polite way of saying “don’t turn the U.S. government into a crypto ATM.”

Warren further pressed for a formal commitment from regulators, writing: “I therefore seek written confirmation from you that the U.S. Treasury and the Federal Reserve will not use their authorities … to bail out the bitcoin market or crypto asset intermediaries no later than February 27, 2026.” This deadline, presumably chosen at random, gives officials just enough time to panic, consult with lawyers, and then panic again.

She also cited the troubling trend of concentrated ownership in the bitcoin ecosystem, which is a polite way of saying “a handful of people own most of it, and the rest of us are just here for the vibes.” Warren highlighted that billions were lost to crypto scams last year, including sums tied to impersonation schemes and bitcoin ATM fraud. This, she argued, is a compelling reason to prioritize consumer safeguards over market intervention, which is a fancy way of saying “don’t let the rich play with fire while the rest of us clean up the ashes.”

FAQ ⏰

  • Why did Elizabeth Warren warn against a bitcoin bailout?
    Because she’s determined to stop the government from becoming the world’s most expensive babysitter for crypto billionaires.
  • How much value has bitcoin lost since its October 2025 peak?
    Enough to make a small nation weep, or roughly half of what it was worth just a few months ago.
  • What federal tools did Warren reference in her letter?
    The Treasury’s Exchange Stabilization Fund and the Fed’s 13(3) authority-tools so potent they could probably fix the economy, if anyone remembered how to use them.
  • What risks did Warren highlight in the crypto market?
    Concentrated ownership (i.e., a few people own most of it) and scams so creative they make the Financial Times sound like a children’s storybook.

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2026-02-23 07:11