Senator Elizabeth Warren has wasted no time in challenging Treasury Secretary nominee Scott Bessent ahead of his confirmation hearing scheduled for Thursday. In a scathing 31-page letter, Warren demanded clarity on Bessent’s plans for crypto oversight, financial deregulation, and tax policy.
One of Warren’s main concerns was crypto regulation. She questioned whether Bessent believed the Treasury’s sanctions division should have jurisdiction over stablecoins and whether tools should be in place to shut down risky crypto firms. Warren emphasized the need for a strong regulatory framework to prevent abuse of stablecoins for money laundering or sanctions evasion.
In addition to crypto, Warren delved into Bessent’s track record of supporting deregulation. She highlighted his praise for Trump-era deregulation policies and raised concerns about the potential risks of another banking crisis. Warren pressed Bessent on upholding the Dodd-Frank Act and enforcing regulations to prevent financial meltdowns.
Tax policy was another hot topic in Warren’s letter. She criticized Bessent’s support for Trump’s tax cuts, which added trillions to the federal deficit without achieving promised economic growth. Warren challenged Bessent’s tax plan and questioned his stance on closing tax loopholes for the wealthy.
Warren also focused on the decline of small banks and the need to protect small businesses. She questioned Bessent on proposals to limit the FDIC’s ability to sell failing banks to megabanks and called for efforts to raise deposit insurance limits for small businesses.
The IRS budget cuts and tax fairness were also on Warren’s radar. She raised concerns about funding cuts to the IRS and emphasized the importance of maintaining audit quality to target wealthy tax cheats. Warren demanded Bessent’s commitment to safeguarding taxpayer privacy, prosecuting violators, and ensuring fairness in tax enforcement.
Overall, Warren’s letter to Bessent covered a wide range of topics, from crypto regulation to tax policy and financial stability. Her tough questioning and demands for clarity set the stage for a rigorous confirmation hearing on Thursday.