Scott Bessent Begins Process to Succeed Jerome Powell

TLDR

• Bessent oversees $17 billion Bitcoin reserve project.
• He supports stablecoins backed by U.S. Treasuries.
• Bessent aims for international regulatory alignment in digital assets.

The process to find a successor for Federal Reserve Chair Jerome Powell has officially started. This event is particularly significant due to the involvement of U.S. Treasury Secretary Scott Bessent. Bessent’s influence is critical as it affects current crypto market policies under President Donald Trump’s administration.

Scott Bessent, an experienced hedge fund manager and former Chief Investment Officer at Soros Fund Management, has a notable financial background. His career also includes positions such as adjunct professor at Yale and founder of Bessent Capital. As Treasury Secretary, he has divested personal Bitcoin ETF holdings to comply with nomination requirements.

Bessent’s Stance on Central Bank Digital Currency

During a recent Senate hearing, Scott Bessent expressed skepticism about a U.S. central bank digital currency (CBDC). He stated, “I see no reason why the Fed should be involved in creating a domestic CBDC,” highlighting the administration’s shift away from Fed-driven digital dollar projects. This position aligns with the administration’s broader crypto-friendly policies.

Ripple CEO Brad Garlinghouse commented on Bessent’s position, describing him as “A strong advocate for crypto innovation, and we are optimistic about…digital assets with Scott Bessent at the helm.” His comments reflect confidence in Bessent’s leadership in digital finance.

Strategic Bitcoin Reserve and Policy Impacts

President Trump’s executive order placed Bessent in charge of the Strategic Bitcoin Reserve project. This initiative consolidates the Bitcoin seized through legal actions, amounting to $17 billion as of March 8, 2025. This reserve serves as a hedge against economic instability.

Bessent is supporting the development of stablecoins backed by U.S. Treasuries and has been instrumental in advancing the GENIUS Act. He has also appointed specialized blockchain advisers to develop these emerging financial technologies. These efforts are outlined in Scott Bessent’s appointment reshapes U.S. crypto policy landscape.

Assets Affected by Bessent’s Policies

Scott Bessent’s policies have several impacts on various digital assets. The U.S. government now holds a significant Bitcoin reserve, a first for sovereign BTC holdings. This strategy differs from past practices where government auctions would depress Bitcoin prices.

Bessent’s backing for stablecoins backed by U.S. Treasuries is poised to affect on-chain stablecoin liquidity. Additionally, his regulatory clarity initiatives may benefit Ethereum (ETH) and other Layer 1 and Layer 2 assets, leading to anticipated institutional inflows.

International Regulatory Alignment and Innovations

In a move to improve digital asset regulation, Bessent has initiated steps to align U.S. standards internationally. This effort seeks to address concerns that fragmented regulations have hindered American innovation in blockchain and payment systems.

Bessent’s policies in this area contrast with China’s digital yuan advances, marking a strategic difference. His appointment of Tyler Williams as a senior blockchain adviser signals a proactive approach to innovation in U.S. digital finance sectors.

Community Response and Developer Engagement

The crypto community is monitoring Bessent’s moves closely. Notably, his decision to appoint Galaxy Digital’s former lawyer Tyler Williams has drawn attention as a positive step for developer engagement and regulatory cooperation.

Discussions on platforms like Twitter and Reddit hint at optimism for a “crypto renaissance” in the U.S. However, the community is focused on official updates rather than speculation regarding Bessent’s full roadmap and policy implementations.