Warren Presses Treasury, Fed to Rule Out Bitcoin Bailout As Prices Tumble: Report
Decrypt
by Callan QuinnFebruary 19, 2026
AI-Generated Deep Dive Summary
U.S. Senator Elizabeth Warren has urged the Treasury Department and the Federal Reserve to confirm they will not use taxpayer dollars to prop up Bitcoin or rescue cryptocurrency firms amid a significant market decline. In a letter addressed to Treasury Secretary Janet Yellen and Federal Reserve Chair Jerome Powell, Warren emphasized that government intervention would disproportionately benefit wealthy investors and crypto insiders while transferring wealth from taxpayers to "crypto billionaires." Bitcoin has fallen approximately 50% since reaching its peak in October, with prices currently hovering just under $67,000. This sharp decline has been exacerbated by cascading liquidations of leveraged positions, leading to significant losses for major investors and companies heavily exposed to the cryptocurrency market.
Warren's letter comes as policymakers increasingly scrutinize the role of digital assets in the financial system. While some states and federal agencies have explored integrating crypto into traditional finance through initiatives like strategic Bitcoin reserves or allowing Bitcoin in public pension portfolios, Warren warned against such measures. She argued that a bailout would not only be unpopular but could also enrich individuals with ties to DeFi ventures, including former President Donald Trump and his family, who are linked to DeFi platform World Liberty Financial. This concern was fueled by recent transactions involving World Liberty Financial, which sold wrapped Bitcoin to avoid liquidation during the market downturn.
The senator's stance reflects her long-standing skepticism toward the cryptocurrency industry. Earlier in February, she expressed concerns about the risks posed by crypto markets, particularly for everyday investors and retirees. At a House Financial Services Committee hearing, Treasury Secretary Yellen reiterated that the government lacks legal authority to support Bitcoin using public funds, further reinforcing Warren's call for caution. As the debate over potential government intervention in the crypto market intensifies, questions remain about whether taxpayer dollars will be used to stabilize the industry or protect investors.
Verticals
cryptoweb3
Originally published on Decrypt on 2/19/2026