Political tensions surrounding Bitcoin are rising again in Washington. Senator Elizabeth Warren has called on the Trump administration not to intervene under any circumstances to stabilize the Bitcoin price. According to her, any rescue operation would mainly benefit crypto billionaires and not the American taxpayer.
Changpeng “CZ” Zhao, co-founder of Binance, did not leave that unanswered. His response was short and sweet: “Crypto has never needed a bailout, and never will.”
Warren warns against favoritism for the rich
In her letter to the US Treasury Department and the Federal Reserve, Warren states that government support for the crypto market would disproportionately benefit wealthy digital asset holders. In her view, this would amount to an implicit transfer of risk from private investors to society as a whole.
The call comes at a time when Bitcoin is still trading well below its recent peak and market sentiment is fragile. Warren, a long-time outspoken critic of the crypto sector, believes that taxpayer money should not be used to support speculative markets.
Binance founder hits back
CZ, the founder of Binance, who himself has come under fire from US regulators in the past and reached a settlement for violations of the Bank Secrecy Act, responded via social media. According to him, crypto stands for financial independence and self-reliance, not for dependence on government intervention.
His message fits into the broader ethos of the crypto community: decentralization, personal responsibility and a system that does not rely on central banks or state support.
Political charge surrounding Binance and Trump
The exchange between Warren and CZ is not an isolated event. The senator was previously strongly opposed to the presidential pardon that CZ received from Donald Trump last year. She suggested there may have been a conflict of interest, partly because a Trump family-backed stablecoin was involved in a major investment in Binance.
CZ has firmly denied those allegations and its lawyers are even said to be considering legal action over alleged defamation.
What does this mean for Bitcoin?
The discussion touches on a fundamental question: should the government play a role in stabilizing crypto at all? While traditional financial markets have received support during crises in the past, Bitcoin is positioning itself as an alternative to that system.
Ironically, the public debate about possible support measures could have the opposite effect. For many investors, it shows the distinction between fiat money, which relies on central banks, and Bitcoin, which is designed without an emergency button or rescue mechanism.
Source: https://newsbit.nl/senator-warren-boos-red-de-crypto-markt-niet-met-belastinggeld/
