Regulation
US Senate Confirms Pro-Crypto Scott Bessent As Treasury Secretary
The U.S. Senate has confirmed Scott Bessent as the new Treasury Secretary, cementing a leadership change in President Donald Trump’s administration. Known for his crypto-friendly stance, Bessent’s confirmation marks a pivotal moment for digital assets and broader financial policy under the Trump administration.
Scott Bessent Secures Senate Approval As Treasury Secretary
On Monday evening, Scott Bessent, a billionaire, and the former hedge fund manager, won the Senate vote with a margin of 68 to 29. He will reportedly succeed current Treasury Secretary and previous Federal Reserve Chair Janet Yellen and direct the country’s fiscal policies in his new position.
In the confirmation process, Senator Mike Crapo, the chair of the Senate Financial Committee, said that Bessent is “one of the sharpest minds in the global finance industry.” The Senate confirmation comes as Bessent stepped up to support the Trump administration’s economic policies, which include tax cuts and financial deregulation.
The confirmation of Bessent comes at a time when the administration has been focused on retaining tax cuts and tackling regulatory issues, with digital assets policies also on the president’s recent executive orders.
Crypto Policy to Fall Under Bessent’s Leadership
While Bessent did not expound on cryptocurrency policies during the nomination hearing, his experience indicates that he is conversant with digital currencies. His financial statements showed that he had invested over $500,000 in Bitcoin ETFs which he sold off once he was nominated.
In his recent executive order, President Trump tasked the Treasury Department to develop a strategy for digital assets. Bessent will spearhead the department’s contribution to the working group that is supposed to come up with the regulatory and legislative recommendations within six months.
Ripple CEO Brad Garlinghouse expressed his pleasure with the appointment saying on X, “Congratulations to the newly-confirmed Treasury Secretary Scott Bessent!. He will make a great leader for Americans’! Garlinghouse has before referred to Bessent as pro-innovation and pro-crypto, which could mean that the new Treasury head will be favorable to innovation in the financial sector.
No Domestic CBDC Development Under Scott Bessent
The present administration’s position to cease the development of a CBDC in the country is also consistent with Scott Bessent’s viewpoint. In a recent Senate confirmation hearing, Bessent said he sees “no reason” why the Fed should be involved in creating a domestic CBDC.
This move comes at a time when other countries like China are also coming up with their own CBDCs. In line with the preference for private sector-driven development of digital finance, the administration’s executive order halts further work on the U.S. digital dollar.
Bessent’s approach has been welcomed by crypto enthusiasts who have expressed doubts about government-controlled digital currencies. Hence, his leadership will define the Treasury’s input in the formulation of the United States’ cryptocurrency regulation while aligning with the international financial system.
Oversight of Financial Crime and Sanctions Enforcement
In his new position as Treasury Secretary, Bessent will also be in charge of the Financial Crimes Enforcement Network (FinCEN) that deals with the fight against crime in the financial systems. FinCEN has been paying particular attention to the use of cryptocurrencies for criminal activities including human trafficking, and money laundering.
Thus, under Bessent’s leadership, the department will focus on the regulation of cryptocurrency mixers, which make transactions opaque. Such services have been identified by the authorities as being used for an attempt to mask illicit activities.
The Treasury Department will also continue to oversee the U.S. financial sanctions, including those imposed on foreign corporations that engage in digital assets. Such measures will remain directed towards enhancing national security and at the same time supporting the development of the crypto industry.
Kelvin Munene Murithi
Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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