Crypto supporter Scott Bessent appointed as U.S. Treasury secretary
Senate confirms Scott Bessent as Treasury secretary
On Monday, the U.S. Senate confirmed Scott Bessent as Treasury secretary under President Donald Trump, positioning him as a central figure in shaping the administration’s economic agenda.
Bessent’s confirmation was approved with bipartisan support by a vote of 68-29, as 16 Democrats joined Republicans to endorse his nomination. He becomes the 79th Treasury Secretary in U.S. history, Reuters reports.
Key responsibilities as Treasury secretary
As Treasury Secretary, Bessent is tasked with managing the country’s $28 trillion debt market, overseeing tax policy, financial regulation, and international economic relations. During his confirmation hearings, the 62-year-old emphasized the importance of extending $4 trillion in tax cuts set to expire this year, warning that failure to act could have devastating consequences for middle-class Americans. He also advocated for imposing high tariffs to combat unfair trade practices and strengthen U.S. leverage in global negotiations.
Financial challenges and market impact
Bessent dismissed concerns that the administration’s policies would lead to higher inflation, highlighting efforts to boost domestic oil production as a strategy for stabilizing prices. However, he faces immediate challenges, such as managing federal cash flows after the government surpassed its statutory debt limit early in Trump’s term. During the hearings, Bessent assured that there would be no default under his leadership.
Financial markets will closely watch how Bessent addresses the growing budget deficit, which is expected to increase significantly if tax cuts are extended without compensatory revenue increases or spending reductions. With over 60% of the federal debt set to roll over during his tenure, his role in shaping fiscal policy will be critical. Recently, long-term bond yields have risen, reflecting investor concerns over deficits and inflation, which have also driven mortgage rates above 7%.
Prospects in the crypto industry
Bessent is also known for his crypto-friendly stance, marking a potential turning point for the digital asset sector under the Trump administration.
Ripple CEO Brad Garlinghouse congratulated Bessent on his appointment in a post on X, expressing confidence that he will adopt sound economic policies while working with the administration and Congress to advance technological and cryptocurrency innovations in the U.S.
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Born and raised in South Carolina, Bessent earned a degree in political science from Yale University and built a successful career in finance, working for George Soros and Jim Chanos before founding his own firm, Key Square.
