Pro-crypto Scott Bessent chosen as US Treasury secretary

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The United States Senate has confirmed President Donald Trump’s pick for Treasury secretary, known pro-crypto advocate Scott Bessent. The billionaire hedge fund manager from South Carolina will preside over the nation’s tax collections and its $28 trillion Treasury debt market, holding influence over fiscal policy, financial regulations, international sanctions and investments from overseas.

Basset was confirmed on January 27 by a Senate vote of 68 in favor to 29 against, with 16 Democrats supporting the nomination.

The 62-year-old was a major donor, fundraiser, and economic advisor for Trump’s 2024 presidential campaign, and last November was rewarded with the president’s nomination for Treasury secretary.

He has previously expressed supportive views on digital assets, telling Fox Business last July that he had “been excited about the president’s embrace of crypto, and I think it fits very well with the Republican Party. Crypto is about freedom, and the crypto economy is here to stay.”

During his nomination hearing earlier in January, Bessent also spoke against issuing a central bank digital currency (CBDC)—another of Trump’s most vehement blockchain policies—saying he saw “no reason” for the U.S. to have one.

“In my mind, a central bank digital currency is for countries who have no other investment alternatives,” Bessent said.

On Monday, his comments focused more on non-crypto issues, saying that government spending was “out of control” and that failure to renew $4 trillion in tax cuts expiring at the end of this year would be a “calamity” for middle-class Americans, as well as making the case that tariffs would help combat unfair trade practices, increase revenues, and bolster U.S. leverage in international negotiations.

In terms of specific policies, the new Treasury secretary is expected to apply a 2.5% universal tariff on U.S. imports that would move higher each month to as high as 20%, reported the Financial Times, citing sources familiar with the matter.

Under Trump’s January 23 “Digital Financial Leadership” executive order, the Treasury will also be a part of the “Presidential Working Group on Digital Asset Markets” to nail down the strategy for U.S. digital asset policy.

Thus, Bessent will be involved in developing a federal regulatory framework for digital assets, including stablecoins, and evaluating the creation of a “strategic national digital assets stockpile.”

Bessent’s confirmation met with approval from some notable digital asset industry figures, including Ripple CEO Brad Garlinghouse, who congratulated the billionaire hedge fund manager on X.

“I’m confident he’ll enact common-sense economic policies, working with the Administration and Congress to grow U.S. tech and crypto innovation,” said Garlinghouse.

Departure from previous secretary

Once sworn into office, Bessent will officially take over from previous Treasury Secretary Janet Yellen, a Democratic appointee of former President Joe Biden. Yellen’s approach to the digital asset space during her tenure was notably more cautious than the one mooted by Bessent.

On April 7, 2022, speaking at American University’s Kogod School of Business Center for Innovation, Yellen first acknowledged the growing impact of digital assets on the American economy while outlining several policy objectives, including:

“First, the U.S. financial system benefits from responsible innovation; second, it’s often society’s vulnerable who suffer most in an economic crisis when regulation is not moving at the same pace as innovation; third, regulation should focus on activities and risk, not technology; fourth, sovereign money is the core of a functioning financial system; and fifth, it’ll take thoughtful public and private dialogue between various groups to move forward.”

Yellen also floated the possibility of issuing a CBDC, or digital dollar, while taking into consideration the impact it may have on monetary policy, national security, and international trade, as well as its utility for consumers. According to Yellen, solving such problems was an “engineering challenge that would require years of development, not months.”

However, even the hint of the Treasury exploring a CBDC was enough to inspire a substantial backlash, including Trump vowing to never allow the creation of a CBDC if reelected, several states moving to prevent a CBDC, and the passing of a federal bill preventing the issuance of a CBDC without the explicit authorization of Congress, the CBDC Anti-Surveillance State Act.

As well as bringing a markedly more gung-ho, innovation-first approach to digital asset space oversight, Bessent will almost certainly put the kibosh on any U.S. CBDC testing and development for the foreseeable future.

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