U.S. Treasury Secretary Scott Bessent’s Testimony on Bitcoin
During a lively session in front of the House Financial Services Committee on Wednesday, U.S. Treasury Secretary Scott Bessent found himself in an intricate debate regarding Bitcoin’s future financial implications. The discussion was ignited by Rep. Brad Sherman (D-CA), who inquired if the Treasury had the capacity to intervene in the event of a financial collapse involving Bitcoin.
“Is the Treasury prepared to ‘bail out Bitcoin’?”
Sherman posed, prompting Bessent to request clarification on the term, reflecting his surprise at the specific phrasing.
Despite recent criticisms facing numerous public companies over their significant Bitcoin investments—amidst a downturn in its value—Bessent emphasized that the actual Bitcoin network remains stable and is not threatened by any fluctuations in market price. He reminded attendees of Bitcoin’s resilience during its nascent phase when it traded at mere cents.
Discussion on Banking Regulations
Sherman then shifted his questioning to whether the Secretary could mandate U.S. banks to invest in Bitcoin, to which Bessent firmly stated that such authority does not lie with him. The conversation eventually wrapped up without a clear stance on whether taxpayer funds would ever be allocated towards purchasing cryptocurrency, as Bessent defended the government’s practice of maintaining seized Bitcoin, avoiding a direct response on future investments.
Scrutiny from Rep. Gregory Meeks
In a separate exchange, Bessent faced scrutiny from Rep. Gregory Meeks (D-NY), who questioned him about whether he would advise the Office of the Comptroller of the Currency (OCC) to deny a banking charter to World Liberty Financial, a cryptocurrency venture partly owned by the Trump family. This firm’s association with a controversial UAE entity linked to an AI chip project drew condemnation from Meeks as he pressed Bessent for a commitment to prioritize thorough investigations.
Instead of answering, Bessent highlighted the OCC’s independent operations, but tensions flared when he referenced a past trip Meeks took to Venezuela in 2006, leading to a heated exchange between the two, which was eventually curtailed by committee chair French Hill (R-AR).
Meeks passionately criticized Bessent, urging him to “stop covering for the president” and to serve the interests of American citizens instead.
This dramatic confrontation encapsulated the ongoing complexities and controversies surrounding cryptocurrency regulation in the United States.
