How much taxpayer money should be used to bail out Bitcoin and other cryptocurrencies if they fail?

Photo above - Senator Elizabeth Warren recently demanded that Treasury Secretary Scott Bessent promise not to bail out crypto if it fails. He demurred, so she wrote him an angry letter.

Senator Warren is so upset at the potential to use taxpayer dollars to bail out the flailing cryptocurrency universe. Now she's written a letter. To the US Treasury Department and Federal Reserve asking them to promise they not do it. (see link below). Stop laughing. This is vital policy questions are resolved. Televised hearings on C-span, then follow-up letters to whoever testified. Your and my opinion still don't matter.

Scott Bessent and Jerome Powell testified before the Senate Banking Committee earlier this year. They didn’t say “no” when asked if taxpayer money will be used to bail out the crypto-universe. Hence Warren's angry letters. Just letters, because Senator Warren is only a committee member, and has zero power. That may change in November, when democrats reclaim the senate and house. She will become the committee chair-woman. But it’s still not clear how much power the senate has – if any – to stop this sort of crypto chicanery. The supreme court just took a year to decide that the 2025 presidential tariffs are illegal. The government will now be refunding billions of dollars to corporations. Evidently none of that money will flow to you or me - the people who paid higher prices because of the tariffs.

If the president and his cabinet decide to bail out crypto, where in the US constitution is that prohibited?

If a crypto rescue happens, it could take a year or more for the supreme court to agree to hear the case. Bailouts will have again succeeded in creating winners (corporations) and losers (ordinary taxpayers). Billionaire corporations vote with their wallets, through campaign contributions. I only have one vote.

If you DON’T think a crypto bailout is in our future, I would remind everyone what happened in 2008. The president bailed out wall street, money center banks, and even Detroit with a monsoon of cash. There wasn’t even a supreme court hearing to see if this could be legal.

And in 2020-21, we had more covid bailouts. This time it was all on the senate. The money went to airlines, cruise ships, hotels, casinos, restaurants and rappers. All those corporations and entertainers were in trouble because too many people took the government up on its recommendation to shelter indoors and wear a mask. Trillions in pandemic stimulus went out the door, never to be seen again.

Back to the crypto bailout. People in this forum – and in my own apartment building – have fierce opinions about the “Clarity” crypto bill, which is stalled in congress. The pro vs con opinions are sharply divided by whether or not someone owns crypto. And a LOT of small fish own crypto. My neighbor owns about $50 worth. He is convinced that the “Clarity” bill will fix everything and send his crypto holdings to the moon. He told me that he is currently unable to work because of long term depression, for which has received counselling and has been prescribed Zoloft.

But who am i to say that unemployed crypto day traders are mistaken? In the past, the US government has tried to bail out just about anyone and anything that could result in their re-election.

I’m just sayin’ . . .



Elizabeth Warren Says Fed, Treasury Shouldn't 'Use Taxpayer Dollars To Bail Out Crypto Billionaires'

https://finance.yahoo.com/news/elizabeth-warren-says-fed-treasury-130047293.html