Scott Bessent, President-elect Donald Trump’s nominee for US Treasury Secretary, has announced plans to resign from Key Square Group and sell his stake in the hedge fund if confirmed by the Senate. The move is intended to eliminate any potential conflicts of interest during his tenure.
According to a document released by the US Office of Government Ethics (OGE), Bessent would step down from his role at Key Square Group immediately after confirmation and divest his ownership within 90 days. The macro hedge fund, which Bessent founded and managed, is scheduled to be wound down by the end of March.
In compliance with requirements for high-ranking government officials, Bessent has disclosed his financial holdings and plans for divestment ahead of his Senate confirmation hearing, which is set for Thursday. His personal financial disclosure, also released by the OGE, revealed assets valued at a minimum of $521 million, though the actual worth of his portfolio is believed to be significantly higher.
Nominees are required to report their assets within broad valuation ranges, with the highest category being “over $50,000,000.” Bessent listed nine assets in this category, all linked to his hedge fund, including two tranches of US Treasury bills, two Invesco funds, and positions tied to the dollar’s value against foreign currencies. Additionally, he disclosed a personal investment in a bitcoin-linked iShares exchange-traded fund, valued at no more than $500,000, which he also plans to divest.
As Treasury Secretary, Bessent is expected to play a pivotal role in shaping economic policy under the Trump administration, including the regulation of digital assets and the implementation of tax reforms. A strong advocate for adjusting US currency policy, Bessent has stopped short of endorsing a deliberate strategy to weaken the dollar. During President Trump’s first term, the then-president criticized dollar appreciation for its negative impact on US manufacturers and considered measures to manage its value.
However, some of Bessent’s financial interests may take longer to resolve. He has invested at least $250,000 in three funds that restrict withdrawals to no more than 25% of holdings per quarter, prolonging the divestment process.
Bessent’s financial disclosure underscores the significant wealth and complex portfolio he brings to the role. His decisions as Treasury Secretary could have far-reaching implications for the US economy, particularly in areas like tax policy and cryptocurrency regulation.
