The U.S. Senate has confirmed Scott Bessent, a billionaire hedge fund manager, as the new Treasury Secretary. Bessent, known for his support of cryptocurrency and his opposition to a central bank digital currency (CBDC), will replace Janet Yellen. The Senate voted 68-29 in favor of his nomination on Jan. 27, with 16 Democrats joining Republicans in supporting him.
As Treasury Secretary, Bessent will oversee critical aspects of the U.S. economy. His responsibilities include managing tax collections, the $28 trillion Treasury debt market, financial regulations, and international sanctions. He will also play a key role in shaping fiscal policy and overseeing investments overseas.
Bessent is expected to contribute to the “Presidential Working Group on Digital Asset Markets,” created under President Donald Trump’s recent executive order. This group will develop strategies for regulating digital assets, including cryptocurrencies and stablecoins, and explore the possibility of a national digital asset reserve.
Bessent Is Pro-Crypto But Opposition to CBDCs
Bessent has been vocal about his support for cryptocurrency. During his Senate confirmation hearing, he described crypto as a symbol of freedom and emphasized that the crypto economy is “here to stay.” He has also expressed opposition to the development of a U.S. CBDC, calling it unnecessary and unsuitable for the country. He argues that such currencies are more appropriate for nations with limited investment alternatives.
Bessent aligns closely with President Trump’s economic agenda. He supports extending $4 trillion in tax cuts, implementing tariffs, and increasing oil production. He has dismissed concerns that these policies will lead to higher inflation, emphasizing efforts to control government spending and boost domestic energy production.
Impact on Cryptocurrency Regulation
Under Bessent’s leadership, the Treasury will play a central role in putting the regulatory framework for digital assets. His stance on fostering innovation in the crypto sector has been welcomed by industry leaders. Ripple CEO Brad Garlinghouse congratulated Bessent on his confirmation, expressing confidence that he would enact “common-sense economic policies” to promote U.S. technological and crypto innovation.
Bessent will oversee the Financial Crimes Enforcement Network (FinCEN), which monitors financial crimes such as money laundering and human trafficking. He is expected to address concerns about cryptocurrency mixers, which are often used to obscure transactions. The Treasury will also continue enforcing sanctions on foreign entities using digital assets for illicit purposes, aiming to balance national security with support for the crypto industry.
