In a significant development for the future of digital assets, President-elect Donald Trump’s nominee for Treasury Secretary, billionaire hedge fund manager Scott Bessent, voiced strong opposition to the concept of a U.S. central bank digital currency (CBDC) during his Senate confirmation hearing on Thursday. While cryptocurrency took a backseat to tax policy in the overall discussions, Bessent’s comments on CBDCs and his call for a “2025 approach” to digital currencies sent a clear signal about the incoming administration’s stance.
Bessent: U.S. Has No Need for a CBDC
When questioned by senators, Bessent unequivocally rejected the notion of a digital dollar issued by the Federal Reserve, a controversial idea that has raised concerns in the crypto industry about government overreach. “I see no reason for the U.S. to have a central bank digital currency,” he asserted. “In my mind, a central bank digital currency is for countries who have no other investment alternatives.”
This position sets Bessent apart from the dozens of countries, most notably China, that have launched or piloted their own CBDCs in recent years. However, he argued that these nations have generally pursued CBDCs “out of necessity,” implying that the U.S. faces no such imperative thanks to its robust financial system and investment opportunities.
“Too many politicians have been working with a 20th century outlook which not only hurts digital innovators, but also global security.“
– Ceder Innovation Foundation, reacting to Bessent’s comments
A Modern Outlook on Crypto
Beyond his opposition to a CBDC, Bessent also hinted at a forward-thinking perspective on cryptocurrencies in general. In the context of combating terrorist financing, he remarked, “I believe we have to have a 2025 approach to … digital currencies.” This sentiment quickly earned praise from crypto advocates like the Ceder Innovation Foundation, which declared in a social media post:
“Too many politicians have been working with a 20th century outlook which not only hurts digital innovators, but also global security.“
– Ceder Innovation Foundation
Bessent’s pro-crypto leanings come as little surprise given his personal stake in the industry. Before accepting Trump’s nomination, he reportedly shed hundreds of thousands of dollars worth of bitcoin exchange-traded fund investments. “Crypto is about freedom and the crypto economy is here to stay,” he proclaimed in a July interview with Fox Business, leaving little doubt about where he stands.
Implications for U.S. Crypto Policy
If confirmed as Treasury Secretary, Bessent would wield significant influence over the direction of U.S. cryptocurrency regulation and policy. His opposition to a CBDC suggests that the Federal Reserve is unlikely to move forward with a digital dollar on his watch, alleviating a major concern for many in the crypto community who fear a CBDC could undermine the role of decentralized digital assets.
At the same time, Bessent’s call for a “2025 approach” to crypto holds out the promise of a more innovation-friendly regulatory environment that could foster the growth of the digital asset ecosystem in the United States. While the specifics of such an approach remain to be seen, it would represent a stark contrast with the often wary and reactive stance that U.S. regulators have taken toward crypto in the past.
The Road Ahead
Of course, Bessent must first secure Senate confirmation before he can begin shaping crypto policy as Treasury Secretary. And even then, he will undoubtedly face competing priorities and political pressures that could constrain his ability to champion a pro-crypto agenda.
Nonetheless, his comments at Thursday’s hearing offer an intriguing glimpse of how the next U.S. administration might approach digital assets. By rejecting a CBDC and embracing a forward-looking stance on crypto, Bessent has signaled a potential sea change in the government’s attitude toward this rapidly evolving sector.
As the confirmation process unfolds and the Trump administration takes office, the crypto world will be watching closely to see how Bessent’s vision translates into concrete policy actions. His initial statements have given the industry reason for cautious optimism – but the real test will lie in the months and years ahead, as the U.S. grapples with the challenges and opportunities presented by the rise of digital currencies.
One thing seems certain: with Scott Bessent at the helm of the Treasury Department, the future of crypto in America promises to be anything but boring. As the nominee himself put it, “Crypto is about freedom and the crypto economy is here to stay.” Now, it falls to policymakers to craft a regulatory framework that can keep pace with this rapidly evolving landscape – and chart a course toward a more innovative, inclusive financial system for the digital age.
