Scott Bessent Takes the Helm as Treasury’s Top Financial Official
With his recent confirmation by the U.S. Senate, Scott Bessent is poised to become the leading financial authority in President Donald Trump’s administration. He will play a crucial role in implementing the cryptocurrency directives that were outlined by the president just last week. Bessent, a billionaire and former hedge fund manager, has not provided much insight into his plans for the crypto sector during his nomination hearings earlier this month, but his reputation as a digital assets advocate is well-known.
Following a Senate vote of 68-29, Bessent’s nomination was officially approved on Monday evening. He is set to permanently replace his predecessor, Janet Yellen, once he is sworn in. Central to Trump’s agenda is the continuation of tax cuts, which may place cryptocurrency initiatives lower on the priority list, although the president has already included crypto in his initial round of executive orders.
Senator Mike Crapo, a Republican from Idaho and chair of the Senate Financial Committee, praised Bessent as “one of the sharpest minds in the global finance industry” prior to the confirmation vote. He expressed confidence that Bessent’s extensive background and training make him exceptionally suited for this role.
The crypto directive issued by Trump assigns Bessent’s Treasury the responsibility of participating in a governmental working group. This group will be enriched by “individual expertise from leaders in digital assets and digital markets” to develop a comprehensive strategy for U.S. cryptocurrency policy. Bessent’s department is tasked with providing the White House with a report in less than two months on potential modifications to existing regulations or the establishment of new ones. Moreover, the broader working group is expected to “recommend regulatory and legislative proposals” within a six-month timeframe.
In addition, Bessent will oversee the dismantling of crypto-related initiatives that were initiated under former President Joe Biden. Among the significant points in the order is a directive that halts work on a U.S. central bank digital currency (CBDC), which has seen no substantial progress in the country, despite other jurisdictions, including China, enthusiastically adopting and testing similar initiatives.
During his nomination hearing, Bessent, who previously served as the chief of Key Square Group, expressed that he saw “no reason” to pursue the concept of a domestic CBDC. This stance has resonated positively with crypto advocates who have been apprehensive about potential government moves toward a digital dollar. However, he was not extensively questioned on specific crypto policies during the hearings.
Nonetheless, Bessent is no stranger to the world of digital assets. His financial disclosures revealed that he had invested hundreds of thousands of dollars into a bitcoin (BTC) exchange-traded fund (ETF), although those assets were liquidated upon his nomination to avoid any conflicts of interest.
At the Treasury, Bessent will also lead the Financial Crimes Enforcement Network (FinCEN), which has actively pursued regulatory actions and enforcement against crypto services, particularly focusing on mixing services that provide users with anonymity by obscuring transaction trails. This focus has been critical, given that digital assets are frequently utilized in illicit activities such as human trafficking and child exploitation.
Additionally, Bessent’s department oversees U.S. financial sanctions, which have historically extended the federal government’s influence over international activities. This was evident when the Treasury targeted the mixer Tornado Cash with sanctions, a decision that was recently overturned in federal court.
Read On: Trump Issues Crypto Executive Order to Pave U.S. Digital Assets Path
