Scott Bessent, a big Trump ally and die-hard hedge fund guy, could land the coveted Treasury Secretary seat now that the president is on his way back to the Oval. And here’s the thing – he’d be the first-ever pro-crypto Treasury Secretary in America’s history.
Now, over 50% of Polymarket’s prediction market users believe Bessent’s got this in the bag. That’s a pretty solid vote of confidence in the prediction community. Even Mathew Sigel, VanEck’s Head of Digital Asset Research, jumped in to say he’s banking on it to shake up the whole Treasury game.
Who exactly is Scott Bessent?
Bessent is a billionaire who’s made a mint with his hedge fund, Key Square Capital Management. Plus, he’s a longtime Trump buddy and campaign donor who’s got deep roots in Wall Street.
When it comes to money and strategy, Bessent’s pedigree includes betting big against the Japanese yen alongside none other than George Soros – and winning big.
In Trump’s circle, he’s got one of the sharpest minds on Wall Street, with the ex-president calling him “one of the top analysts we have ever had.”
Bessent’s also one of Trump’s go-to guys for economic advice. His influence on Trump’s first-term policies was solid, especially on things like tariffs and economic nationalism.
The guy’s not afraid to get creative either, as he’s shown with his unconventional ideas like proposing a “shadow” Fed chair (yep, you read that right) to mess with the US monetary system from the sidelines.
Behind the scenes: Bessent’s cabinet moves
But let’s be real – none of this is coming out of thin air. Bessent’s been working behind the scenes like a chess master, already scouting potential names to serve as his Deputy Treasury Secretary. Why? Because Trump’s transition team has already tapped him to vet potential candidates for the deputy role.
His friends say he’s just doing Trump’s bidding by finding good fits, but hey, that just sounds like he’s setting the stage for himself. One source close to Bessent reportedly said: “Some people may have mistaken those as direct interviews, which they were not.”
Bessent himself told CNBC that “no discussions about jobs” have happened yet, but people who know him say he’s acting like the Treasury seat is already his.
His approach to being Treasury Secretary? Well, he’s not playing it cool. When asked by CNBC if he’d consider a role in Trump’s administration, his answer was straight to the point: “I’m going to do whatever President Trump asks.”
So yeah, there’s no dodging the fact that he’s interested – and given the way things are unfolding, it’s looking less like a “maybe” and more like a “when.”
Crypto’s unlikely ally in the Treasury
Up till now, the US Treasury Department’s been as crypto-skeptic as they come, but Bessent might change that. Imagine a Treasury Secretary who actually understands blockchain tech and doesn’t see it as some dark-web currency used only for shady deals.
And in a crypto industry often stuck between a rock (federal agencies) and a hard place (uncertain regulations), that kind of leadership would be monumental.
Of course, Bessent isn’t the only heavyweight in Trump’s ring for the Treasury spot. We’ve got John Paulson, another billionaire hedge fund guy who’s also a big Trump donor and has publicly supported using tariffs to combat unfair trade practices.
Paulson is reportedly interested in the Treasury seat and even threw a major fundraiser that brought in over $50 million for Trump. But while Paulson’s another strong name, his stance on crypto is more traditional, meaning he’d be a less daring choice in comparison.
Then there’s Robert Lighthizer, who served as Trump’s US Trade Representative. Known for spearheading Trump’s trade war with China, Lighthizer is all in on tariffs and is essentially a trade protectionist at heart.
While he’d likely be loyal to Trump’s economic goals, his rigid stance on trade doesn’t scream “innovative” for the crypto scene. He’s more about tariffs than decentralization, and he might focus more on old-school economic policies rather than experimenting with blockchain or digital currencies.
Other possible picks include Senator Bill Hagerty, who was Trump’s ambassador to Japan, and Howard Lutnick, CEO of Cantor Fitzgerald and co-chair of Trump’s transition team. Lutnick is known for his unapologetic support of Trump’s economic agenda, particularly tariffs.
But Bessent’s unique blend of crypto enthusiasm and unconventional policy ideas seems to make him stand out even more. Even the FOX Business personality Larry Kudlow could make the cut, but given his private skepticism on tariffs, he’s not quite aligned with Trump’s hard-nosed trade vision.
Bessent’s wild card policies
If Bessent does take on the Treasury role, expect a mix of the old and the new. He’s voiced support for traditional ideas, like maintaining a strong dollar as the world’s reserve currency.
During Trump’s first term, the former president wasn’t thrilled with a strong dollar, which he felt made life tough for US exporters like Boeing. Bessent, however, is a fan of the dollar’s strength and sees it as vital to America’s role in global finance.
But that’s where the traditional stuff ends. On tariffs, he’s fully on Trump’s team, calling his trade policy a “maximalist threat” in a recent Financial Times interview. He thinks Trump’s threat of sweeping tariffs is all about negotiation power, a strategy he called “escalate to de-escalate.”
His twist? Bessent suggests phasing in tariffs over time, making them less of an immediate inflation shock. In his view, these would go hand in hand with deregulation to keep prices in check. If that’s not a cocktail of traditional meets unconventional, what is?
And then, there’s that “shadow” Fed chair idea. Bessent floated the possibility of nominating someone as a “shadow” chair of the Federal Reserve, who wouldn’t be involved in actual policymaking but would offer public guidance on monetary policy.
Critics say it’s a bizarre move that could undercut the authority of Fed Chair Jay Powell, but Bessent seems unfazed. It’s one of those ideas that’s got Wall Street veterans scratching their heads while crypto folks lean in closer, intrigued.
Beyond Treasury: Trump’s inner circle
Trump is building an entire team, and that lineup shows where his priorities are. Susie Wiles, one of his campaign managers, has already been announced as White House Chief of Staff. Wiles is seen as someone who can bring order to Trump’s inner circle – something sorely missed in his first term.
If we look at the bigger picture, Bessent is just one cog in Trump’s aggressive economic machine. There’s Richard Grenell, a loyalist to Trump’s foreign policy vision, possibly lining up for Secretary of State. Grenell has his own reputation for straight-talking and, let’s face it, some controversy.
He’s rumored to favor setting up an autonomous zone in eastern Ukraine, an idea not exactly beloved in Kyiv. Then Robert O’Brien, another former national security adviser under Trump, who’s more hawkish and even supports military aid to Ukraine, a rare stance among Trump’s circle.
Tom Homan and Chad Wolf, who both supported Trump’s hardline position on immigration, are in the running for Secretary of Homeland Security. Wolf, Trump’s acting DHS secretary, earned his stripes by deploying federal agents during the riots in Portland, Oregon.
Homan’s no softy either, known for his outspoken defense of Trump’s controversial child separation policy. Both have their eyes set on keeping borders tight, something the president made a cornerstone of his first run.
For Secretary of Defense, Trump’s looking at Mike Pompeo, who served as his CIA Director and Secretary of State, and Mike Waltz, a current congressman and former Army Green Beret. Both are known for their hardline views, particularly toward China.
Waltz, for instance, has pushed for reducing US reliance on China for critical minerals. Pompeo stands out for his strong support of Ukraine, a stance that could bring tension within Trump’s team, given Trump’s stance on foreign aid.
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