The Senate has to approve Donald Trump’s nominee for Treasury Secretary Scott Bessent; in this case, the latter will have to resign from Key Square Group and sell the hedge fund’s shares.
For instance, following the standards set by the U.S. Office of Government Ethics, once confirmed, Bessent will be required to resign from the firm and have 90 days to dispose of his shares.
Bessent’s financial assets exceed $500 Million
According to federal ethics rules, Bessent has filed asset declarations worth $521 million. His financial assets include US Treasury bills, the Invesco series of mutual funds, and foreign currencies linked with Key Square Group. Other assets include $25 million worth of farmland in North Dakota, $25 million worth of property in the Bahamas, and at least one million worth of paintings and antiques.
He also detailed investing $500,000 in an iShares Bitcoin ETF and will sell it when confirmed as the CFTC chairman. The nominee has also promised to divest all those positions that might conflict with his duties and responsibilities, such as his share in All Seasons, a conservative magazine publishing. Moreover, he intends to close his investment firm, Key Square Capital Management, quit his position in the Bessent-Freeman Family Foundation, and relinquish the chairmanship of the investment committee at Rockefeller University.
Upcoming Senate hearing and confirmation process
Bessent has been proposed to appear before the Senate for a hearing next Thursday regarding his assets and affairs and how he proposes to cope with conflict of interest. The Speaker of the House and Chairman of the Senate Committee on the conduct of nominees interested in holding federal official positions must declare their assets and state their plans of divesting before they assume their positions.
If true, Bessent will come to the Treasury Department with much-needed financial experience. He is expected to support pushing Trump’s economic policies, such as tax reforms, new trade deals, and tariffs. His general knowledge is also helpful because he can be involved in forming cryptocurrency policies.
Aiding Trump’s Cryptocurrency goals
Trump named Bessent a key figure in his suggested pro-crypto measures owing to his involvement in digital assets. The former president has been interested in developing a national reserve of BTC, and thus, Bessent’s understanding of crypto can aid in this goal.
Bessent became Trump’s favorite for the Treasury Secretary position over other prospects such as Marc Rowan, who works for Apollo Global Management; Kevin Warsh, a former governor at the Federal Reserve; Bill Hagerty, a senator, and Trump’s transition team co-chair Howard Lutnick.