Summary:
Donald Trump is reconsidering his Treasury Secretary picks, initially leaning towards crypto advocates.
Interpersonal drama between Howard Lutnick and Scott Bessent has influenced Trump's decision.
Both Bessent and Lutnick would likely promote a pro-crypto agenda in the Treasury.
Trump is now considering Kevin Warsh and Marc Rowan, who have mixed views on crypto.
Warsh has supported the creation of a CBDC, raising concerns among crypto advocates.
Trump Rethinks Treasury Secretary Picks
Just when it seemed Donald Trump was ready to appoint a crypto advocate as Treasury Secretary, reports suggest he is reconsidering his options. After narrowing down his choices to Scott Bessent and Howard Lutnick, both known for their pro-Bitcoin stances, Trump is now exploring other candidates.
The Drama Behind the Scenes
The shift appears to stem from interpersonal issues rather than direct crypto concerns. Lutnick, who leads Trump’s transition team, has allegedly lobbied aggressively for the Treasury position while undermining Bessent's qualifications. This friction has reportedly frustrated Trump, prompting him to look for alternatives.
Implications for the Crypto Sector
If Trump were to appoint either Bessent or Lutnick, the Treasury Department might adopt a more favorable stance towards digital assets. Bessent has shown interest in establishing a federal strategic Bitcoin reserve, while Lutnick is a notable Bitcoin supporter, managing billions in assets for Tether.
New Candidates on the Horizon
However, according to The New York Times, Trump's potential new candidates, Kevin Warsh and Marc Rowan, are not as crypto-friendly. Warsh has advocated for an American central bank digital currency (CBDC), which many in the crypto community oppose due to privacy concerns. Rowan has expressed skepticism about the necessity of digital assets in the U.S. economy.
Trump's Preferences
Trump is particularly interested in Warsh, citing his intelligence and appeal. Meetings with both candidates are expected this week, which could determine the future direction of the Treasury's digital asset policies.
Edited by Andrew Hayward
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