Bessent rejects a U.S. central bank digital currency (CBDC), favoring private-sector innovation and leading Trump's digital asset strategy development.
Scott Bessent has officially stepped into the role of Treasury Secretary, marking a significant leadership change under President Donald Trump's administration. The U.S. Senate confirmed Bessent on Monday with a decisive 68-29 vote, a victory that signals a possible turning point for U.S. financial policy, especially regarding digital assets.
Known for his sharp financial acumen, Bessent succeeds Janet Yellen, the former Federal Reserve Chair, and now takes on the responsibility of directing the nation's fiscal policies. His appointment arrives as the administration doubles down on its economic priorities, including tax cuts, deregulation, and a growing focus on digital asset policies.
Senator Mike Crapo, Chair of the Senate Financial Committee, commended Bessent during the confirmation process, describing him as one of the most insightful figures in global finance.
Bessent's confirmation reflects a growing emphasis on digital assets, a central component of recent executive orders by President Trump. While Bessent has not disclosed specific cryptocurrency policies, his professional history indicates expertise in the sector. Financial disclosures revealed investments exceeding $500,000 in Bitcoin ETFs, later sold following his nomination.
Trump's directive assigns the Treasury Department responsibility for developing a digital asset strategy, which Bessent will lead. Within six months, his team must present regulatory and legislative proposals to define cryptocurrency's future in the United States.
Key figures in finance have expressed support for Bessent's appointment. Ripple CEO Brad Garlinghouse praised his selection, citing leadership potential. Garlinghouse's prior endorsement of Bessent's pro-innovation approach has intensified expectations for crypto-friendly initiatives under his leadership.
Bessent's views align with the administration's decision to cease the development of a U.S. central bank digital currency (CBDC). During his Senate confirmation hearing, he stated he saw "no reason" for the Federal Reserve to create a domestic CBDC. This position contrasts sharply with countries like China, which are aggressively advancing their CBDC initiatives.
Instead, Bessent and the administration favor private sector-led advancements in digital finance. The Treasury's role in overseeing financial sanctions, including those on foreign entities involved in digital assets, remains critical. These measures aim to strike a balance between national security and fostering crypto innovation.
In addition to his crypto focus, Bessent is a staunch advocate for Trump's broader economic agenda. He supports universal tariffs on imports, starting at 2.5% and potentially rising to 20%, as reported by the Financial Times. Reuters described him as a "forceful advocate" for cutting taxes and boosting domestic oil production, measures he believes will curb inflation and strengthen the economy.