In a heated exchange during a hearing of the House Financial Services Committee, Treasury Secretary Scott Bessent faced intense scrutiny from lawmakers over the government’s stance on cryptocurrency, particularly Bitcoin. The discussion began when Rep. Brad Sherman (D-CA) inquired about the Treasury Department’s authority to intervene in potential financial crises involving Bitcoin. Bessent appeared taken aback by the suggestion, seeking clarification on what a “bailout” for the cryptocurrency would entail.
Sherman further pressed Bessent on whether he could mandate U.S. banks to invest in Bitcoin, to which Bessent firmly responded, “I do not have the authority to do that.” The conversation then shifted to the contentious topic of taxpayer dollars and whether Bessent would consider using them to purchase cryptocurrency assets. Instead of giving a definitive answer, Bessent defended the current U.S. policy of retaining seized Bitcoin, leaving the question of taxpayer investment in crypto unresolved by the time Sherman’s questioning concluded.
Tensions escalated further when Rep. Gregory Meeks (D-NY) directed Bessent’s attention to the Trump family’s cryptocurrency venture, World Liberty Financial. Meeks pressed Bessent on whether he would instruct the Office of the Comptroller of the Currency to deny a bank charter pending an investigation into the company’s connections to a foreign entity involved in a controversial AI chip deal. In a move that highlighted the contentious atmosphere, Bessent declined to comment on the specific investigation, citing the independence of the OCC.
This evasion ignited a loud exchange between Meeks and Bessent, culminating in accusations that Bessent was not adequately representing American interests. Meeks’s exasperated outburst, “Stop covering for the president! Don’t be a flunky, work for the American people!” underscored the charged nature of the proceedings, with chairs and members striving to restore order to the increasingly fractious dialogue.
As the hearing progressed, it became evident that the relationship between government oversight and burgeoning crypto markets remains fraught with challenges and complications, emblematic of the broader struggles regulators face in managing this transformative financial landscape.
