Billionaire hedge fund manager Scott Bessent, recently nominated by President-elect Donald Trump to serve as Treasury Secretary, is taking proactive steps to dispose of several assets to mitigate any potential conflicts of interest arising from his new role. Reports from The New York Times indicate that Bessent plans to divest from investments, including his stake in bitcoin (BTC) exchange-traded funds (ETF).
Bessent, who previously worked under billionaire liberal philanthropist George Soros, disclosed his financial information on Saturday as part of the necessary ethics agreement and financial disclosures required for Senate confirmation. His report revealed assets and investments totaling over $700 million, with BTC ETF holdings estimated between $250,000 and $500,000, as covered by media sources.
In addition to his cryptocurrency investments, other significant assets that may pose conflicts of interest include a margin loan exceeding $50 million from Goldman Sachs, a trading account for China’s currency, and a stake in conservative publisher All Seasons.
In a communication to the ethics office, Bessent expressed his commitment to “avoid any actual or apparent conflict of interest in the event that I am confirmed for the position of secretary of the Department of Treasury.” This assurance is critical as he prepares to undertake one of the most challenging economic management roles in the federal government.
If confirmed, Bessent’s pro-crypto stance will face the daunting challenge of managing the nation’s burgeoning federal debt. This task is compounded by Trump’s ambitions to extend expiring tax cuts and eliminate taxes on social security benefits, which could add further strain to fiscal resources.
Bessent has frequently advocated for tax reform and deregulation as essential measures to stimulate bank lending and enhance energy production. Previously, he mentioned that the new Trump administration would likely maintain a strong dollar policy, aligning with Washington’s long-standing economic strategy, as he stated in October last year in a statement to Coindesk.
As scrutiny around his financial disclosures continues, Bessent’s ability to effectively navigate potential conflicts of interest will be pivotal to his success in the Treasury Secretary role, and by extension, the economic direction of the new administration.
