On January 27, the U.S. Senate confirmed Donald Trump’s nominee for Treasury Secretary, billionaire hedge fund manager Scott Bessent, in a 68-29 vote. The confirmation saw bipartisan support, with 16 Democrats joining Republicans to back the nomination.
Bessent’s confirmation is particularly notable given his pro-crypto stance and opposition to central bank digital currencies (CBDCs), aligning closely with President Trump’s economic vision.
The Role of the Treasury Secretary
As Treasury Secretary, Bessent assumes significant responsibility over critical aspects of the U.S. economy. His purview includes managing the nation’s tax collection system, overseeing the $28 trillion Treasury debt market, and influencing fiscal policy and financial regulations. He will also play a key role in shaping international sanctions and overseeing foreign investments.
Ripple CEO Brad Garlinghouse congratulated Bessent on X (formerly Twitter), expressing optimism about his approach to fostering tech and crypto innovation:
“Confident he’ll enact common-sense economic policies, working with the Administration and Congress to grow U.S. tech and crypto innovation.”
Bessent’s Economic and Crypto Views
A Tennessee native and longtime supporter of Trump’s economic agenda, Bessent has championed policies such as the renewal of $4 trillion in expiring tax cuts, increased oil production, and the implementation of tariffs. During his confirmation hearing, he voiced concerns about federal spending, stating:
“Government spending is out of control.”
However, what sets Bessent apart is his vocal advocacy for cryptocurrencies. He opposes the idea of a U.S. central bank digital currency, describing it as unnecessary and more suited for countries with limited investment alternatives. In a January 16 Senate Finance Committee hearing, he remarked:
“I see no reason for the U.S. to have a central bank digital currency.”
His sentiment aligns with that of President Trump, who has consistently expressed skepticism about CBDCs. Bessent elaborated on his stance in a July interview with Fox Business:
“I’ve 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.”
SEC and Crypto Regulation Under Trump
Bessent’s confirmation comes as the crypto industry faces heightened regulatory scrutiny, particularly from the U.S. Securities and Exchange Commission (SEC). Under the leadership of Gary Gensler, the SEC has aggressively pursued enforcement actions against crypto companies, accusing many of offering unregistered securities.
Notable cases include lawsuits against Coinbase, Binance, and Ripple, with each company arguing that the SEC lacks clear regulatory authority over digital assets. These cases have brought attention to the need for more explicit crypto legislation in the U.S.
In response to these regulatory challenges, President Trump issued a crypto-focused executive order on January 23. The order established a governmental working group tasked with formulating a cohesive U.S. crypto strategy. This group includes Scott Bessent, SEC Chair Gary Gensler, Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, and Trump’s AI and crypto czar, David Sacks.
The executive order marks a significant step toward creating a regulatory framework that balances innovation with investor protection.
Background on SEC Enforcement Actions
The SEC has ramped up its efforts to regulate the crypto industry in recent years, often citing the Howey Test—a legal standard for determining whether a transaction qualifies as an investment contract. This approach has drawn criticism from industry leaders, who argue that the lack of clear guidelines stifles innovation and drives businesses offshore.
High-profile enforcement actions include Ripple Labs, where the SEC alleged that XRP is an unregistered security, and Coinbase, accused of offering crypto staking products without proper registration. These lawsuits highlight the ongoing tug-of-war between regulators and the crypto industry over how digital assets should be classified and governed.
What Bessent’s Confirmation Means for Crypto
Scott Bessent’s pro-crypto stance could signal a shift in how the U.S. approaches digital assets. His emphasis on fostering innovation and rejecting a U.S. CBDC aligns with a broader vision of crypto as a tool for financial freedom.
With his leadership at the Treasury, coupled with Trump’s crypto executive order, the U.S. may begin charting a clearer path for crypto regulation—one that supports growth while addressing security and compliance concerns.
As the regulatory landscape evolves, the focus will remain on balancing innovation with oversight to ensure the U.S. remains competitive in the rapidly growing crypto economy.
