Scott Bessent’s Appointment as Treasury Secretary — A Turning Point for U.S. Crypto Policy

The U.S. Senate has confirmed Scott Bessent as the new Treasury Secretary, a decision that could redefine America’s financial and cryptocurrency policies. 

Bessent, a billionaire and former hedge fund manager, secured the role on Monday with a decisive 68-29 Senate vote, replacing Janet Yellen. Known for his forward-thinking approach, his appointment signals a potential shift in the federal stance on digital assets.

Source: Log Cabin Republicans via X

Bessent brings a wealth of experience to the position, having previously managed billions in investments. During his confirmation hearing, Senator Mike Crapo, Chair of the Senate Financial Committee, described him as “one of the sharpest minds in the global finance industry.” Bessent’s alignment with President Donald Trump’s economic vision—focused on tax cuts and deregulation—solidified bipartisan support for his confirmation.

Source: Trump War Room via X

His appointment comes at a critical moment for cryptocurrency policy in the U.S. Recent executive orders from President Trump tasked the Treasury Department with crafting a comprehensive strategy for digital assets, setting a six-month deadline for regulatory and legislative recommendations. Now at the helm, Bessent will play a pivotal role in shaping that strategy.

It’s important as there is a battle brewing between those who want a Bitcoin only National Reserve, and others like Brad Garlinghouse, CEO of Ripple Labs, who is advocating for a U.S. digital asset reserve that includes a range of assets, rather than focusing solely on Bitcoin (BTC), XRP, or any single cryptocurrency.

“I own XRP, BTC, and ETH, along with a handful of others—we live in a multichain world,” Garlinghouse shared on X. “I’ve always pushed for a level playing field, not a one-token-versus-another mindset. If a government digital asset reserve is established, it should reflect the broader crypto industry, not just one token, whether that’s BTC, XRP, or anything else.”

Garlinghouse is pushing for XRP to be in the Digital Asset Reserve, source: X

Why Bessent Opposes CBDC?

While Bessent refrained from discussing cryptocurrency policies during his nomination hearing, his personal investment history indicates a familiarity with the sector. Financial disclosures revealed he previously invested over $500,000 in Bitcoin ETFs, though he divested upon nomination. That background offers a glimpse into his openness to digital innovation.

Ripple CEO Brad Garlinghouse commended Bessent’s appointment on X, formerly known as Twitter, describing him as a supporter of innovation and cryptocurrency. Garlinghouse expressed confidence in Bessent’s ability to lead effectively for the benefit of Americans.

Source: Brad Garlinghouse via X

Bessent firmly opposed Federal Reserve involvement in developing a domestic Central Bank Digital Currency (CBDC). During a Senate hearing, he emphasized the lack of justification for such involvement. His stance aligns with the administration’s recent executive order, which paused advancements on the U.S. digital dollar. Meanwhile, other nations, including China, continue advancing their CBDC projects.

“I see no reason why the Fed should be involved in creating a domestic CBDC,” said Bessent.

Bessent’s Bold Agenda: Tariffs and Taxes

Beyond fostering innovation, Bessent will oversee the Financial Crimes Enforcement Network (FinCEN), which is tasked with combating financial crimes such as money laundering and human trafficking. FinCEN has intensified its focus on cryptocurrencies in criminal activities, making Bessent’s role pivotal in navigating the fine line between regulation and growth.

The Treasury Department, under Bessent, will also continue enforcing sanctions on foreign corporations engaged in illicit digital asset transactions. These measures aim to strengthen national security while supporting the crypto industry’s evolution. As the financial world grows more digital, his leadership will be closely scrutinized for its impact on international relations and economic stability.

In addition to his crypto-related responsibilities, Bessent is a staunch advocate for President Trump’s broader economic agenda. According to Reuters, he supports cutting taxes, increasing oil production, and imposing tariffs on imports. Financial Times reported that the new Treasury Secretary plans to implement a 2.5% universal tariff on U.S. imports, which could rise monthly to as high as 20%.