WASHINGTON — Senate Banking Committee Ranking Member Elizabeth Warren (D-MA) is pressing Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell to pledge that taxpayer funds will not be used to stabilize the cryptocurrency market amid a steep selloff in Bitcoin.
In a letter released by the Senate Banking, Housing and Urban Affairs Committee, Warren asked for written confirmation that neither the U.S. Department of the Treasury nor the Federal Reserve will deploy emergency authorities — including Treasury’s Exchange Stabilization Fund or the Fed’s Section 13(3) lending powers — to “bail out cryptocurrency billionaires and other highly compensated cryptocurrency investors.”
Warren noted that both agencies have broad crisis-response tools. Treasury used the Exchange Stabilization Fund to support money market mutual funds during the 2008 financial crisis, while the Fed has relied on its 13(3) authority to extend emergency lending during the 2008 downturn, the COVID-19 pandemic and the 2023 banking turmoil. She argued those tools “must refrain from propping up Bitcoin and transferring wealth from taxpayers to crypto billionaires through direct purchases, guarantees, or liquidity facilities.”
The letter comes as Bitcoin — which Warren said represents nearly 60% of the crypto market by capitalization — has fallen roughly 50% from its October 2025 peak, wiping out more than $2 trillion in market value. Warren said any federal intervention to stabilize the market would disproportionately benefit large investors and industry insiders.
She also cited rising fraud risks in the sector, pointing to a record $17 billion lost or stolen to cryptocurrency scams last year, including a sharp increase in impersonation schemes. Rather than supporting the market, Warren said federal regulators should focus on strengthening consumer protections for retail investors.
Warren requested written confirmation from Treasury and the Fed by Feb. 27, 2026, that they will not use emergency authorities to backstop the Bitcoin market or crypto intermediaries.