Treasury Secretary Scott Bessent recently outlined the Trump administration’s approach to regulating the digital asset industry during a congressional hearing. Speaking before the House Financial Services Committee, Bessent emphasized that the administration aims to position the United States as a global leader in the digital assets sector.
Bessent stated the administration’s objective is for the U.S. to be the premier destination for digital assets, encouraging companies to bring innovation and experimentation back to the country while maintaining their global ambitions. He noted that clear regulatory frameworks and fair access to payment technologies are crucial for this vision. Additionally, ongoing support for private sector solutions will be prioritized over public sector alternatives that might disrupt markets.
In response to a lawmaker’s inquiry about the potential negative impacts of not taking a leadership role, Bessent warned that failing to regulate could lead to an unregulated ecosystem where illicit actors could exploit value transfer systems, resulting in technological setbacks.
Bessent mentioned discussions with financial regulators concerning digital asset regulations and the possible leadership role for the U.S. He highlighted the importance of establishing the U.S. as a strong participant, noting that digital assets could significantly enhance demand for the U.S. dollar.
On regulatory regimes for digital assets, Bessent suggested utilizing existing financial regulation frameworks. He referred to the effective application of bank regulations and anti-money laundering laws, predicting that many countries could easily adopt similar measures.
He confirmed that the Treasury Department recently submitted a report to the president, emphasizing the goal of fostering collaboration with financial institutions, new companies, and entrepreneurs. This includes exploring options for banks to engage in digital asset ventures, whether through custody services or their own digital currencies.
