Bessent grilled over Trump-linked World Liberty Financial, says Treasury doesn’t have the power to ‘bail out bitcoin’
Treasury Secretary Bessent faced scrutiny over World Liberty Financial and affirmed the Treasury cannot 'bail out bitcoin.'Summary
U.S. Treasury Secretary Scott Bessent faced intense questioning during a House Financial Services Committee hearing regarding World Liberty Financial (WLFI), a crypto venture linked to Donald Trump, and the Treasury's oversight role.
Rep. Gregory Meeks criticized WLFI's connection to an Emirati Sheikh Tahnoon bin Zayed Al Nahyan, who secretly acquired a 49% stake before Trump's inauguration, and demanded Bessent pause WLFI's pending bank charter application until conflicts of interest are investigated. Bessent stated the OCC is independent but did not commit to an investigation, leading to a heated exchange.
Furthermore, Bessent was questioned about the Treasury's authority concerning Bitcoin, specifically whether he could "bail out bitcoin" or order investments in it using tax dollars. Bessent firmly stated he lacks that authority, though the Treasury does retain seized bitcoin. He also denied awareness of any government efforts to develop a U.S. Central Bank Digital Currency (CBDC).
(Source：The Block)