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US Senator Elizabeth Warren, known for her opposition to Bitcoin (BTC) and cryptocurrencies, has urged the Treasury Department and the Federal Reserve to refrain from intervening in the cryptocurrency market.
Elizabeth Warren, the senior member of the Senate Banking Committee, reportedly sent a letter to Treasury Secretary Scott Bessent and Federal Reserve Chairman Jerome Powell urging them not to bail out cryptocurrency billionaires with taxpayers’ money.
According to CNBC, the senator wrote a letter to the Treasury Secretary and the Fed chairman regarding Bitcoin’s continued decline since its peak in October.
It is noteworthy that the letter came on the same day that World Liberty Financial, the cryptocurrency project co-founded by Trump, was holding a forum for business leaders at its Mar-a-Lago club.
In her letter, Warren warned that “transferring American taxpayers’ wealth to cryptocurrency billionaires is not only an extremely unpopular practice, but it could also directly enrich President Trump and his family’s cryptocurrency company, World Liberty Financial.”
In her letter, Warren also referred to Bessent’s testimony before the House Financial Services Committee on February 6, stating, “Alarmingly, in a recent hearing, Secretary Bessent was asked about the authority to bail out the cryptocurrency sector, ‘Will our taxpayers’ money be invested in crypto assets?’ But instead of simply saying ‘no,’ Bessent deflected the question by saying ‘we are holding onto the seized Bitcoins.’ Therefore, it is extremely unclear what plans the U.S. government has, or has, to intervene in the current Bitcoin sell-off.”
Warren concluded that any government intervention to stabilize Bitcoin would disproportionately benefit crypto billionaires.
Warren concluded by emphasizing that the Treasury Department and the Fed should not support the Bitcoin price in any way, including through direct purchases, guarantees, or liquidity support.
*This is not investment advice.
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