- House lawmakers confronted Scott Bessent over Treasury oversight and conflicts linked to a Trump-backed crypto firm.
- Democrats called for a pause on WLFI’s bank charter following revelations of a major foreign stake.
- Bessent rejected claims the Treasury can support Bitcoin markets or deploy taxpayer funds.
US Treasury Secretary Scott Bessent faced heated questioning during a House Financial Services Committee hearing focused on the Treasury Department’s oversight responsibilities and its role within the Financial Stability Oversight Council.
Democratic lawmakers concentrated their scrutiny on World Liberty Financial (WLFI), a decentralised finance venture linked to President Donald Trump, and recent disclosures concerning foreign investment in the firm.
Representative Gregory Meeks highlighted reports that an Emirati-backed investment vehicle secretly acquired a 49% stake in WLFI for US$500 million (AU$720 million) shortly before Trump’s inauguration. Meeks urged Bessent to halt any bank charter applications associated with the company while potential conflicts of interest are reviewed, noting that WLFI has submitted an application to the Office of the Comptroller of the Currency.
Bessent responded that the OCC operates independently from the Treasury, declining to say whether he would intervene or initiate a review of the firm. The exchange escalated into a shouting match, with Meeks accusing the Treasury Secretary of shielding the president from accountability.
Related: Australian Influencer Promoted Illegal Crypto Gambling
Lawmakers challenge limits of Bitcoin oversight
Lawmakers also pressed Bessent on the Treasury’s authority over Bitcoin and the administration’s recently established strategic Bitcoin reserve. Bessent confirmed that the reserve is composed of Bitcoin seized through criminal and civil forfeiture proceedings and stated that the government is not authorised to purchase Bitcoin using taxpayer funds.
He said US$500 million (AU$720 million) in retained seized Bitcoin has since increased in value to more than US$15 billion (AU$21.6 billion). Bessent further denied having any authority to instruct banks to buy Bitcoin or to “bail out” the cryptocurrency market.
Related: Michael Burry Warns Bitcoin Breakdown Could Trigger “Sickening” Cascade
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