The US Senate confirms Scott Bessent as the Treasury Secretary, which signals a shift toward pro-crypto policies and the cessation of CBDC discussions.
The confirmation of Scott Bessent as the new Treasury Secretary by the U.S. Senate has solidified a leadership transition within President Donald Trump’s administration. Bessent’s confirmation is a critical moment for digital assets and broader financial policy under the Trump administration, as he is recognized for his crypto-friendly stance.
Senate Approval of Scott Bessent as Treasury Secretary
The Senate vote was gained by billionaire Scott Bessent, the former hedge fund manager, by a margin of 68 to 29 on Monday. He is expected to succeed the current Treasury Secretary and former Federal Reserve Chair, Janet Yellen, in his new role and will be responsible for the country’s fiscal policies.
During the confirmation process, Senator Mike Crapo, the Chair of the Senate Financial Committee, stated that Bessent is “one of the most brilliant minds in the global finance industry.” The Senate’s confirmation of Bessent coincides with his endorsement of the Trump administration’s economic policies, encompassing financial deregulation and tax cuts.
The administration has been concentrating on preserving tax cuts and resolving regulatory issues, with digital asset policies also included in the president’s most recent executive orders.
Bessent’s leadership will oversee cryptocurrency policy
Although Bessent did not elaborate on cryptocurrency policies during the nomination hearing, his experience suggests that he is well-versed in digital currencies. His financial statements indicated that he had invested more than $500,000 in Bitcoin ETFs, which he sold after being nominated.
President Trump directed the president to formulate a digital asset strategy in his most recent executive order. The department’s contribution to the working group, which is tasked with developing regulatory and legislative recommendations within six months, will be led by Bessent.
Brad Garlinghouse, the CEO of Ripple, conveyed his satisfaction with the appointment by stating on X, “Congratulations to the newly-confirmed Treasury Secretary Scott Bessent! He will serve as an exceptional leader for the American people. Bessent has been described by Garlinghouse as pro-innovation and pro-crypto, suggesting that the new Treasury secretary may be inclined to support innovation in the financial sector.
Under Scott Besent, there is no domestic CBDC development
The current administration’s stance to halt the development of CBDCs in the country also follows Scott Bessent’s perspective. In a recent Senate confirmation hearing, Bessent stated that he does not see a reason for the Federal Reserve to be involved in establishing a domestic CBDC.
At the same time, other nations, such as China, are also developing their CBDCs. The administration’s executive order suspends further development of the U.S. digital dollar by its predilection for private sector-driven development of digital finance.
Crypto industry aficionados who have expressed reservations regarding government-controlled digital currencies have embraced Bessent’s methodology. Therefore, his leadership will establish the Treasury’s involvement in developing the United States cryptocurrency regulation by the international financial system.
Supervision of Sanctions Enforcement and Financial Crime
Scott Bessent will also be responsible for the Financial Crimes Enforcement Network (FinCEN), which is responsible for combating corruption within the financial systems, in his new role as Treasury Secretary. FinCEN has been concentrating on the utilization of cryptocurrencies for illicit activities, such as money laundering and human trafficking.
Therefore, the department will concentrate on regulating cryptocurrency mixers, which obscure transactions, under Bessent’s leadership. The authorities have identified the use of these services as a means of concealing illicit activities.
The U.S. financial sanctions, which include those imposed on foreign corporations that engage in digital assets, will also be supervised by the Treasury Department. These measures will continue to focus on developing the crypto industry while enhancing national security.
