- The U.S. Senate confirmed Scott Bessent as Treasury Secretary with a 68-29 vote, marking a significant shift in cryptocurrency policy direction.
- Bessent’s appointment aligns with Trump’s recent executive order promoting friendly cryptocurrency oversight.
- The new Treasury Secretary previously held personal investments in Bitcoin ETFs, which were liquidated upon nomination.
- A working group will develop U.S. crypto strategy within six months, with Treasury playing a central role.
- The administration has explicitly banned work on a central bank digital currency (CBDC).
Former hedge fund manager Scott Bessent secured Senate confirmation as U.S. Treasury Secretary with a 68-29 vote Monday evening, positioning him to implement President Trump’s cryptocurrency-friendly directives outlined in last week’s executive order.
Crypto Policy Shift
Bessent, who previously managed Key Square Group, brings substantial digital asset experience to the Treasury. During his confirmation hearing, he aligned with the administration’s stance against developing a CBDC, stating he saw “no reason” to pursue such an initiative. This position contrasts with other major economies, particularly China, which continues to expand its digital yuan program.
Regulatory Responsibilities
The Treasury Department, under Bessent’s leadership, will participate in a governmental working group tasked with creating comprehensive cryptocurrency regulations. The group must submit recommendations within six months, as outlined in Trump’s executive order. The Treasury’s Financial Crimes Enforcement Network (FinCEN) will maintain oversight of crypto-related criminal activities, including monitoring cryptocurrency mixing services that obscure transaction trails.
Financial Background and Crypto Connections
Senator Mike Crapo, who chairs the Senate Financial Committee, endorsed Bessent as “one of the sharpest minds in the global finance industry.” Financial disclosures revealed Bessent’s previous investments in Bitcoin ETFs, which he divested upon receiving the nomination. His appointment represents a departure from predecessor Janet Yellen’s policies, with directions to reverse Biden-era cryptocurrency initiatives.
The Treasury’s sanctions authority remains significant, particularly following recent legal precedents such as the federal court’s decision to overturn sanctions against mixer Tornado Cash. This ruling may influence future enforcement approaches under Bessent’s leadership.
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