Trump Treasury signals aggressive push on digital assets

WASHINGTON: The Trump administration signalled on Wednesday that it intends to position the United States as the global leader in digital assets and cryptocurrency innovation, a move that could have implications for India and other major economies still grappling with the regulation and taxation of the rapidly evolving sector.

Appearing before the Senate Finance Committee to discuss the administration's fiscal year 2027 budget request, Treasury Secretary Scott Bessent outlined plans to expand the use of digital assets while supporting new legislation to create a clearer regulatory framework for the industry.

Bessent said this during an exchange with Senator Tim Scott, who asked for an update on the implementation of President Donald Trump's executive order establishing a Strategic Bitcoin Reserve and a Digital Asset Stockpile.

Bessent described the initiative as part of a broader effort to strengthen America's economic and technological competitiveness.

"Economic security is national security," Bessent said, adding that the administration was moving forward rapidly on its digital asset agenda.

"The Strategic Bitcoin Reserve is something -- this is new technology, this is new ground. We are proceeding with all deliberate speed, and we are making sure that as we are doing this in this complicated process, we use best practices and things that will be durable for the future," he told the committee.

Bessent also expressed support for pending digital asset legislation moving through Congress.

Earlier in the hearing, responding to questions from Finance Committee Chairman Michael Crapo about digital asset taxation, Bessent said Treasury had been working to implement Trump's executive order on digital assets and welcomed congressional efforts to provide regulatory certainty.

"We saw Congress pass stablecoin legislation, the CLARITY Act, which I would encourage everyone to get behind as very necessary to bring US best practices onshore," he said.

He added that Treasury was working "tirelessly in terms of custodying these assets and keeping them -- making the US the innovation capital of the world."

Trump administration is trying to integrate digital assets into the mainstream financial system while encouraging investment and innovation in the sector. The administration has increasingly framed cryptocurrency and blockchain technology as strategic economic assets that could strengthen America's competitiveness in emerging financial technologies.