In recent congressional hearings, Scott Bessent emphasized the urgent need for regulatory frameworks for cryptocurrency markets and highlighted alarming financial trends.
Budget Cuts and Financial Management
Scott Bessent testified before the House Appropriations subcommittee, discussing budget cuts related to the IRS. He reported that the Treasury Department has already reduced the IRS's IT budget by $2 billion, aiming to transition the agency to automation. Bessent stated that the main goal is to cut expenses from $450 million for paper processing to under $20 million by the end of Trump's second term.
The Crypto Market and Regulatory Necessity
During the hearings before the House Financial Services Committee, Bessent emphasized that the US should be a leader in digital assets. He noted that a solid market structure could benefit not only the US but the entire world. Bessent is seen as a supporter of the cryptocurrency market, asserting that the industry is here to stay.
Political Disagreements in Congress
The situation in Congress is complicated by disagreements between Republicans and Democrats regarding cryptocurrency policy. At the hearings, some Democrats expressed concerns about Trump's involvement in the crypto industry following the launch of his own memecoin and the backing of a stablecoin. Bessent believes both parties must work together to create adequate measures.
Scott Bessent's statements highlight the importance of urgent cryptocurrency regulation amidst tightening US budget policies. It is clear that the further development of the crypto industry requires thoughtful and balanced decisions from lawmakers.
