Scott Bessent Confirmed As US Treasury Sec, Good News for Crypto Industry?

Kelvin Munene Murithi
January 28, 2025
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Highlights

  • Scott Bessent confirmed as U.S. Treasury Secretary, plans pro-crypto policies.
  • Bessent to halt U.S. CBDC development, supports private digital finance innovation.
  • Under Bessent, Treasury to tighten oversight of crypto mixers to curb illicit activities.

The U.S. Senate has confirmed Scott Bessent as the new Treasury Secretary, cementing a leadership change in President Donald Trump’s administration. Known for his crypto-friendly stance, Bessent’s confirmation marks a pivotal moment for digital assets and broader financial policy under the Trump administration.

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Scott Bessent Secures Senate Approval As Treasury Secretary

On Monday, billionaire Scott Bessent, the former hedge fund manager, won the Senate vote by 68 to 29. He will reportedly succeed current Treasury Secretary and previous Federal Reserve Chair Janet Yellen and direct the country’s fiscal policies in his new position.

In the confirmation process, Senator Mike Crapo, the Chair of the Senate Financial Committee, said that Bessent is “one of the sharpest minds in the global finance industry.” The Senate confirmation comes as Bessent stepped up to support the Trump administration’s economic policies, which include tax cuts and financial deregulation.

The confirmation of Bessent comes at a time when the administration has been focused on retaining tax cuts and tackling regulatory issues, with digital assets policies also on the president’s recent executive orders.

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Crypto Policy to Fall Under Bessent’s Leadership

While Bessent did not expound on cryptocurrency policies during the nomination hearing, his experience indicates that he is conversant with digital currencies. His financial statements showed that he had invested over $500,000 in Bitcoin ETFs which he sold off once he was nominated.

In his recent executive order, President Trump tasked the Treasury Department to develop a strategy for digital assets. Bessent will spearhead the department’s contribution to the working group that is supposed to come up with the regulatory and legislative recommendations within six months.

Ripple CEO Brad Garlinghouse expressed his pleasure with the appointment, saying on X, “Congratulations to the newly-confirmed Treasury Secretary Scott Bessent! He will make a great leader for Americans.” Garlinghouse has before referred to Bessent as pro-innovation and pro-crypto, which could mean that the new Treasury head will be favorable to innovation in the financial sector.

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No Domestic CBDC Development Under Scott Bessent

The present administration’s position to cease CBDC development in the country is also consistent with Scott Bessent’s viewpoint. In a recent Senate confirmation hearing, Bessent said he sees “no reason” why the Fed should be involved in creating a domestic CBDC.

This move comes at a time when other countries like China are also coming up with their own CBDCs. In line with the preference for private sector-driven development of digital finance, the administration’s executive order halts further work on the U.S. digital dollar.

Bessent’s approach has been welcomed by crypto industry enthusiasts who have expressed doubts about government-controlled digital currencies. Hence, his leadership will define the Treasury’s input in the formulation of the United States’ cryptocurrency regulation while aligning with the international financial system.

Oversight of Financial Crime and Sanctions Enforcement

In his new position as Treasury Secretary, Scott Bessent will also be in charge of the Financial Crimes Enforcement Network (FinCEN) which deals with the fight against crime in the financial systems. FinCEN has been paying particular attention to the use of cryptocurrencies for criminal activities including human trafficking, and money laundering.

Thus, under Bessent’s leadership, the department will focus on the regulation of cryptocurrency mixers, which make transactions opaque. Such services have been identified by the authorities as being used in an attempt to mask illicit activities.

The Treasury Department will also continue to oversee the U.S. financial sanctions, including those imposed on foreign corporations that engage in digital assets. Such measures will remain directed towards enhancing national security and at the same time supporting the development of the crypto industry.

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Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Why Trust CoinGape

CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.

About Author
About Author
Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.