In a move that’s raising eyebrows in both Wall Street and Washington, President-elect Donald Trump’s nominee for Treasury Secretary, billionaire hedge fund manager Scott Bessent, has revealed plans to divest a host of investments, including holdings in bitcoin exchange-traded funds (ETFs). The divestments, disclosed in ethics filings released Saturday, are aimed at eliminating potential conflicts of interest as Bessent prepares to take the reins of the nation’s financial policy.
A Billionaire’s Bitcoin Bets
Bessent, a Wall Street veteran who cut his teeth working for liberal philanthropist George Soros before amassing his own fortune, reported assets and investments totaling over $700 million in the required disclosures for his impending Senate confirmation process. Among the eye-catching line items: between $250,000 and $500,000 in bitcoin ETF holdings.
While a relative drop in the bucket for Bessent’s sprawling portfolio, the crypto investments are notable given bitcoin’s rollercoaster ride in recent years and its still-unsettled regulatory status. Bessent’s willingness to bet on the controversial digital currency, even in a small way, hints at a potentially crypto-friendly perspective as he prepares to help steer economic policy under the new administration.
Untangling Financial Webs
Beyond the bitcoin holdings, Bessent identified an array of other investments and financial entanglements that could pose conflicts with his Treasury duties, including:
- A $50+ million margin loan with Goldman Sachs
- A trading account for China’s renminbi currency
- A stake in conservative media outlet All Seasons
In a letter to ethics officials, Bessent pledged to “avoid any actual or apparent conflict of interest” and divest the problematic assets if confirmed to the cabinet post. Government watchdogs will surely keep close tabs on the sprawling divestment process for one of the wealthiest Treasury nominees in recent memory.
Macro Moves: Taxes, the Dollar, and Debt
If he does win confirmation, Bessent will inherit a challenging economic landscape. In addition to untangling his own investment web, he’ll be tasked with managing a mushrooming federal debt as the Trump administration pushes to extend expiring tax cuts and eliminate taxes on Social Security benefits.
Bessent’s own policy leanings tilt towards tax reform and deregulation—particularly in the realms of spurring bank lending and energy production. He’s also hinted that the new administration will likely maintain the country’s long-standing strong dollar policy.
With his pro-crypto and free-market bona fides, Bessent’s nomination suggests the winds of change could be blowing for both digital asset markets and the broader economic horizon under the incoming Trump team. As the confirmation gears turn and inauguration day looms, all eyes are on the new administration’s early signals.
Adapting to shifting conditions with agility is the key to success, both in markets and in economic stewardship. Thoughtful, targeted deregulation can unleash growth and bolster resilience.
— Scott Bessent
