President-elect Donald Trump has tapped Scott Bessent, billionaire hedge fund manager, and cryptocurrency advocate, as his nominee for Treasury Secretary.
Just a week before Trump’s inauguration, Bessent is preparing to divest various assets, including his stake in BlackRock’s Bitcoin ETF (IBIT). But don’t worry — it’s not a sign of lost faith in Bitcoin ETFs. This sale is a requirement of his new role, ensuring no conflicts of interest arise during his tenure at the Treasury.
Read also: BlackRock's iShares Bitcoin ETF Takes a Step Closer to Reality
Under federal ethics rules, candidates for key government positions must divest assets that could present conflicts of interest within 90 days of Senate confirmation.
According to documents released Saturday by the U.S. Office of Government Ethics, Bessent disclosed a portfolio worth approximately $521 million. The crypto community has warmly welcomed Trump’s pick.
🚨 BREAKING 🚨
— Ash Crypto (@Ashcryptoreal) January 12, 2025
🇺🇸 TRUMP’S NEXT US TREASURY PICK
SCOTT BESSENT OWNS $500,000+
WORTH OF BITCOIN ETF.
THIS IS GIGA BULLISH FOR CRYPTO 🔥 pic.twitter.com/hG4hh8OhUM
source - https://x.com/Ashcryptoreal/status/1878440095830708481
While Bessent has expressed his readiness to divest, his exact plans for IBIT remain unclear. The market and the public will undoubtedly closely monitor any actions involving these assets.
Interestingly, the sale of Bitcoin ETFs was not explicitly mentioned in the disclosed documents’ footnotes, sparking a wave of speculation. Matthew Sigel, head of research at VanEck, questioned whether such a sale was even necessary.
Upon Reflection, I'm not so sure why Bloomberg says he will be selling the Bitcoin ETF.
— matthew sigel, recovering CFA (@matthew_sigel) January 12, 2025
For other assets, the divestment is footnoted, but not $IBIT. Any thoughts @bill_allison?
(Also, Mr. Bessent, thank you for being a @vaneck_us Customer $GDX). https://t.co/R5upDQ53rJ pic.twitter.com/XPjVIADK5A
source: https://x.com/matthew_sigel/status/1878278245872738620
Career and Expertise
As part of his preparation for the Treasury role, Bessent also announced his departure from Key Square Group, the hedge fund he founded, to avoid potential conflicts of interest in private capital management.
Before founding Key Square Group, Bessent served as Chief Investment Officer at Soros Fund Management, where he managed billionaire George Soros’s assets from 2011 to 2015. His tenure included overseeing investment strategies and supporting philanthropic initiatives. Bessent also taught economic history at Yale University from 2006 to 2010.
Bessent’s Crypto Advocacy
What sets Bessent apart is his progressive stance on crypto. A staunch supporter of digital assets, Bessent has called crypto "an essential part of economic freedom and innovation."
In a recent interview, he stated: “Crypto is about freedom, and the crypto economy is here to stay. Crypto is bringing in young people, people who have not participated in markets”.
Bessent’s appointment aligns with Trump’s broader vision for economic modernization and reform. Early signs suggest the administration aims to position the U.S. as a global leader in the cryptocurrency space, recognizing its growing importance in international finance.
If Scott Bessent’s nomination is confirmed during the January 16 hearing, he will be a key figure in advancing the economic agenda of the Trump administration. At the heart of this agenda are tax cuts, deregulation, and fostering the growth of the cryptocurrency industry. The future president highlighted his "extensive financial expertise and proven track record as an investor," calling his selection "a step toward a new Golden Age for the United States."
Under Bessent’s leadership, policies encouraging blockchain innovation and contributing to a favorable environment for startups and investors could take center stage, potentially bringing digital currencies further into the economic mainstream.
Abimbola Adu
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