Scott Bessent, Donald Trump’s Treasury Pick, To Liquidate $577M Hedge Fund

Key Takeaways

• Scott Bessent, Donald Trump’s Treasury Secretary pick, will dissolve his hedge fund to avoid conflicts of interest.
• Bessent plans to divest from all business roles and assets before assuming the Treasury position.
• In a recent financial filing, Bessent listed his assets at over $500 million.

Scott Bessent, nominated as Treasury Secretary by President-elect Donald Trump, is taking steps to prevent potential conflicts of interest before assuming office.

Bessent announced plans to dissolve Key Square Group, his $577 million hedge fund, and divest his assets.

Bessent’s nomination, made in December, positions him to take over this critical financial role following Trump’s inauguration on Jan. 20.

Ethical Compliance and Asset Divestment

In an ethics agreement submitted as part of his confirmation process, Bessent detailed his strategy to avoid any real or perceived conflicts of interest.

He committed to dissolving Key Square Group by the end of March and stepping down from his role as chairman of the investment committee at Rockefeller University. He also plans to relinquish his involvement with his family foundation.

Bessent will divest from any assets that could present conflicts, including long-term currency bets, Bitcoin ETFs, and shares in Cambrian Biopharma, a drug development company.

According to a financial disclosure filed on Jan. 11, Bessent’s net worth exceeds $500 million, though the exact figure is likely higher due to the broad valuation categories used. Notably, nine of his asset entries are valued at “over $50 million,” including a substantial stake in Key Square Group.

Bessent has served as a key financial advisor to Trump and was instrumental in the president-elect’s transition team. His deep financial expertise is expected to play a significant role in shaping the administration’s economic policies.

Trump Administration’s Pro-Crypto Agenda

Donald Trump’s administration, bolstered by strong support from the crypto industry, is set to lead a pro-crypto agenda. With backing from crypto firms during the 2024 general elections, Trump’s tenure is anticipated to bring greater regulatory clarity and promote growth in the sector.

Bessent, known for his favorable stance on Bitcoin, is joined by several other pro-crypto nominees for key regulatory positions, including appointments at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Major crypto players like Ripple and Coinbase, who contributed heavily to Trump’s campaign, are optimistic about the administration’s potential to foster a more business-friendly regulatory environment.

Ripple has already initiated expansion efforts, while Coinbase expects the new leadership to address and potentially dismiss ongoing lawsuits against crypto companies.