CZ Says Crypto Has ‘Never Needed a Bailout — and Never Will’ as Warren Presses Regulators
Changpeng “CZ” Zhao, co-founder of Binance, has strongly rejected calls for government support for the cryptocurrency industry, declaring that “crypto has never needed a bailout and never will.” His remarks came in response to a letter from Senator Elizabeth Warren urging the U.S. Treasury and Federal Reserve to firmly rule out any use of taxpayer dollars to rescue crypto investors or firms.
Warren’s letter, addressed to Treasury Secretary Scott Bessent and Fed Chair Jerome Powell, argued that any bailout — including direct purchases, guarantees or liquidity facilities — “would transfer wealth from American taxpayers to cryptocurrency billionaires.” She cited losses by major crypto figures and companies, including Binance’s CZ, Coinbase’s Brian Armstrong and Strategy’s Michael Saylor, as part of her case against government intervention in the market.
In his post on X (formerly Twitter), CZ dismissed the need for a safety net for digital assets, emphasizing the crypto market’s historical self-reliance and resilience without federal rescues. He reiterated that digital assets operate in a market-driven model, where failures are resolved through liquidations, restructuring or exits — not through taxpayer-funded bailouts.
Proponents of this view argue that the decentralized nature of blockchain markets makes traditional bailout mechanisms unnecessary and inappropriate, contrasting sharply with how the government supports traditional financial institutions during crises. Critics like Warren counter that without clear regulatory frameworks and safeguards, retail investors remain vulnerable to significant losses and fraud.