In a move that could have far-reaching implications for the future of money, President-elect Donald Trump is reportedly close to nominating Scott Bessent, a prominent Wall Street hedge fund manager and crypto enthusiast, as his Treasury Secretary. If confirmed by the Senate, Bessent would become the first person in this powerful role whose signature graces U.S. currency while also being a true believer in the disruptive potential of digital assets to upend the conventional financial system.
Who is Scott Bessent?
Bessent, who currently runs the macro investing firm Key Square Group, is no stranger to high-stakes financial bets. Nearly three decades ago, he worked for legendary investor George Soros and was, according to The Wall Street Journal, “a driving force” behind Soros Fund Management’s famous wager against the British pound that netted over $1 billion in profits.
But it’s Bessent’s bullishness on Bitcoin and cryptocurrencies that has raised eyebrows in recent years. “I am excited about [Trump’s] embrace of crypto and I think it is perfectly suited for the Republican Party, the ethos of it. Crypto is about freedom and the crypto economy is here to stay,” he said in a Fox Business interview in July. “Crypto is bringing young people, people who haven’t participated in markets.”
A Turning Point for Crypto?
If Bessent does indeed become Treasury Secretary, it would mark a major milestone for cryptocurrency’s journey from the fringes of the internet to the corridors of power in Washington D.C. Having a crypto champion in charge of the department that oversees the printing of fiat currency and helps shape financial policy could accelerate regulatory clarity and mainstream adoption of digital assets in the U.S.
Crypto insiders are cautiously optimistic. “It’s hard to overstate how significant it would be to have a Treasury Secretary who fundamentally understands and believes in the promise of cryptocurrencies,” said one industry executive who wished to remain anonymous due to the sensitive nature of the appointment process. “At the same time, the Treasury is a massive ship to steer and one person alone can’t magically fix all the regulatory uncertainty.”
The Bigger Picture
Bessent’s potential nomination comes at a time of growing institutional and corporate interest in cryptocurrencies as an investable asset class and a hedge against inflation. Major companies like MicroStrategy and Tesla have added Bitcoin to their balance sheets, while Wall Street giants like Goldman Sachs and JPMorgan are ramping up crypto offerings for clients.
If confirmed, Bessent would join a growing list of crypto-friendly officials in the upper echelons of the U.S. government, including:
- SEC Commissioner Hester Peirce (aka “Crypto Mom”)
- OCC head Brian Brooks (former Coinbase executive)
- CFTC chair Heath Tarbert (who declared Ether a commodity)
This emerging brain trust of crypto advocates in key regulatory positions, combined with growing popular and institutional demand, could set the stage for a watershed moment in the mainstreaming of digital assets. As the saying goes, “personnel is policy” – and Bessent at Treasury would be the most personnel crypto could hope for.
Challenges Remain
Of course, a crypto-savvy Treasury Secretary is no panacea. The industry still faces major hurdles, from lingering reputational baggage to the existential threat posed by quantum computing. Bessent would also have to navigate a delicate geopolitical landscape as major powers jockey for advantage in the digital currency arms race.
China, in particular, has made no secret of its ambitions to use its forthcoming digital yuan (and associated payment rails) to undermine U.S dollar hegemony and create a new global financial order. A Treasury helmed by a crypto hawk could be seen as an escalation in an emerging “cold war” over the future of money.
At the end of the day, the impact of a Bessent Treasury Department would hinge on his unique mix of market acumen, crypto conviction and political savvy. If he can leverage his new platform to push for smarter regulation and wider adoption without spooking incumbents, it could mark the beginning of a new era for cryptocurrency as an asset class and a technology.
In the meantime, all eyes will be on the Senate confirmation process, where Bessent will no doubt face tough questions from crypto-sceptic lawmakers on both sides of the aisle. How he performs under fire could be the first test of just how far crypto has come in its journey from the shadowy fringes to the beating heart of the financial establishment. One thing is certain: it will be anything but boring.
