TLDR
- In a decisive Senate vote tallying 68-29, Scott Bessent was approved as the new US Treasury Secretary.
- Bessent is recognized for his advocacy of cryptocurrency and his disapproval of developing CBDCs.
- He will play a critical role in leading efforts to formulate new governmental strategies related to cryptocurrency within the Treasury.
- Before his nomination, he had personally invested more than $500,000 in Bitcoin-focused ETFs, assets he divested upon being nominated.
- Bessent is expected to guide the Treasury's involvement in monitoring cryptocurrency use in financial crimes and oversight of crypto mixers.
The United States Senate In a bipartisan resolution, Scott Bessent has been confirmed as the Treasury Secretary by a vote of 68 to 29. This marks a transition in leadership at one of the country's main financial bodies. The seasoned hedge fund manager Bessent is set to take over from Janet Yellen in steering America’s fiscal and monetary policies.
On January 27, the Senate confirmed Bessent, with support spanning both major parties; 16 Democrats joined Republicans backing his nomination. Senator Mike Crapo, head of the Senate Financial Committee, lauded Bessent as a leading expert in global finance.
Taking charge as Treasury Secretary, Bessent will juggle several pivotal duties, from overseeing the mammoth $28 trillion Treasury debt market and managing tax revenue to setting policies impacting both digital currencies and wider financial terrains.
During his confirmation, Bessent tackled major economic challenges confronting the US, labeling governmental expenditure as excessively high. His economic vision dovetails with the Trump administration's goals, incorporating the renewal of $4 trillion worth of tax cuts alongside boosting domestic energy output.
Bessent's cryptocurrency perspective has piqued the interest of the digital asset sector. Even though he previously invested a considerable sum in Bitcoin ETFs, he cashed out post-nomination to sidestep potential conflicts of interest. He refrained from outlining specific crypto policies during his hearing.
Bessent's introduction as Treasury Secretary coincides with recent digital asset directives from the current administration. He will helm the Treasury’s role in a task force that is to propose regulatory and legislative frameworks within the next half-year.
Ripple's CEO, Brad Garlinghouse, expressed support for Bessent's appointment on the social media platform X, highlighting his potential to work with legislative bodies and the administration for advancing technological and crypto innovation in the US, hailing him as both pro-innovation and pro-crypto.
A distinctive element of Bessent’s stance is his view on Central Bank Digital Currencies. During a Senate Finance Committee meeting on January 16, he declared that he doesn't see the necessity for a US central bank digital currency, aligning with the administration’s current standstill on CBDC development.
In an interview conducted in July with Fox Business, Bessent commended the president's stance on cryptocurrency, stating that it's about liberty and the enduring nature of the cryptocurrency economy.
He pointed out that this sentiment aligns well with Republican values.
Under Bessent's leadership, the Treasury will persist in its vigilance over financial offenses via the Financial Crimes Enforcement Network (FinCEN), addressing especially the issue of cryptocurrency mixers known for their potential use in money laundering and trafficking.
The department will continue enforcing sanctions targeting foreign bodies involved with digital asset dealings, aiming to boost national security while supporting lawful growth within the crypto space.
Bessent’s confirmation provided insights into his broader economic outlook. He rebutted criticism suggesting that policies from the Trump era would precipitate inflation, as reported by Reuters. The seasoned legislator from Tennessee has been a staunch advocate for economic measures such as tariff applications.
Bessent will join a group spearheaded by notable figures such as David Sacks, the AI and crypto czar, alongside leading figures from agencies like the SEC and the CFTC, tasked with steering America’s crypto regulations forward.
Blockonomi's Editor-in-Chief and Kooc Media's UK-based Founder advocates for Open-Source Software, Blockchain Technology, & an uninhibited and fair internet.
