What Treasury Secretary Nominee Scott Bessent Means for Markets
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Welcome back to the breakdown with me and L W. It's a daily podcast on micro bitcoin and the big picture, powerless PS remaking our world. What's gone on, guys, IT is monday, november twenty fifth.

And today we are talking about the next treasury secretary of the united states of america. Before we get into that. However, if you are enjoying the breakdown, please go subscribe to IT.

Give IT a rating, give IT a of you, or if you want to dive deeper in to the conversation, come join us in the break ers discord. You can find a link at the shows are a bit that l slack breakdown pod, hello, friends, happy monday. The trump transition team has announced to macro hedged fund manager Scott as their selection for treasury secretary.

This has been a real back and forth right best and was reportedly trumps original pic coming out of the election. But the process was sidetrack by a dispute with transition team coach ir and counter with geral CEO Howard, which trump advisers described as a nigh fight. After a weeks of speculation in several new candidates being put forward, IT appears the trump has circled back to his original pic, a man he described once as one of the most brilliant men on wall street.

And that's the general view among financial professionals that best in is a genius s money manager who skills and macro o analysis make him uniquely suited to the roll. As head of treasury, best son spent a decade as the cio of George stories family office before spinning off his own fund in twenty fifteen. This was part of the chAllenge as some corners of the magi universe are skeptical of the sorrow link, but best in fits the mold of many former democrats who are getting behind trump ahead of this administration.

During the two thousand algar campaign, best son was one of the largest democrat donors hosting a fund raiser at his house and his hampton. He continued donating to democrats all the way to the barack obama campaign twenty twelve this year. However, person was one of the earliest and loud voices in support of trump among wall street tycoons after supporting the twenty sixteen trump campaign.

Best join this year's team is an economic advisor in addition to being a top und razer. The logic seems to be that the ideological battles are secondary to the economic struggles facing the united states. If confirmed, person will be the first openly gay treasury secretary and previously held gay marriage is one of his primary political issues.

During a podcast earlier this month, best and ladas plans to get the U. S. Economy back on a sustainable fiscal path.

He said. We are going to decide whether we are going to grow our way out of this debt. And and I think we can, through deregulation, energy independence and dominance in the U.

S. And a growth, I feel very strongly that this is the last chance to grow ourselves out of this. I also feel strongly that we are in the midst of a great realignment, a britain wood's type realignment in global policy, in global trade.

And i'd like to be a part of IT. Lately, i'm convinced that this new republican party has been reconstituted as the party of the future, a elting, a working class in business class people. And i'm determined that these constituencies treated well.

See, I started out very affluent ent, and my dad saw to IT that we lost that. Now that i've made IT back, I want to see for working people that things go well. And, quote, pushing the U.

S. In the structurally higher growth is the main objective over recent months, best in pitched to plan. He's calling three, three, three, targeting three percent economic growth, reducing the deficit to three percent of GDP and increasing domestic oil production by three million barrels s per day.

For reference, the U. S. Is currently growing at around three percent, but deficits are expected to be at seven percent.

At three million vero per day. Increase in oil production would be a twenty percent increase. Under present, we could see three percent growth, three, defined as the new lower bound, that triggers s concern.

If successful, this policy could return the U. S. Economy to setting that were more similar to the nineties than anything we've seen in recent decades.

Well, best son is in favor of using terrify. He's taking a slightly more nuance view than trump. He used trumps plan, a blanket fifteen percent tariff s as a maximum of negotiating strategy rather than a sound economic plan. Besson is being received as the right man for the job on wall street, Andrew brenner, head of international fixing comment at alliance security, said of all the names that we're floated as front runner for treasury secretary under trump, I think best thing was the best person.

I don't think anyone is going to do a good a job as manual did, but he doesn't want the job stand dunk and Miller, who oversaw best son as a trader at or as as fund during the notorious breaking of the british pound in one thousand and ninety two, said, if anybody can handle IT, it's Scott. The bond market seems to be optimistic about passion, with rates on long data, treasuries rolling over in futures trading. Last night, jez nord, V C E O of X A data route bond futures like Scott best as they should, scot will work hard to produce tourists for the U.

S. Economy and markets. And the moves in the asian open or logical reflecting when IT comes to bitcoin, encysted to policy basin is obviously less of an over bitcoin maxi than Howard lettie, but still firmly programs to stating in an interview earlier this year, crypto is about freedom and crypto economy is here to stay.

Cyp to is bringing in Young people, people who have not participated in markets. Repel C E O brad garden house remark over the weekend. Scott son is the perfect pic micro trump.

He will be the most pro innovation program to treasury secretary we ever seen. And this seems to me to be a pretty good way to think about best as treasury secretary, at least from our point of view. Crept won't be as number one priority, but arguably I should be.

He won't be as provi coin as like nick, but he doesn't need to be simply having a proper novation progress agenda and a promise of attitude towards script would make him easily the most programs to treasuries secretary the nation has ever seen. Veteran maco investor in real vision CEO. While paul commented Scott best, the new treasury secretary, is in favor of a weaker dollar and lower oil Prices to drive U.

S. And global growth. That is all you need to know. IT will drive financial conditions til the r scot is good for your bags.

I've known him for over a decade and he gets IT. He added a tad deeper. He understands that we have to try to goose GDP to grow out of the debt.

I think IT fails to the long term demographics until A I in robot. Even so, we still have to roll ten trillion ish of debt. We need lower rates in two thousand twenty five before growth can kick in.

So that is the treasury secretary story. IT was a long and winding process to end up where IT began, but wall street teams excited, and I think there's a lot to be enthusiastic about with scot passion. Today's episode is brought you by bit key, the hardware wallet built for bitcoin made by the team behind square and cash up bitchy makes security managing your bitcoin absurdly simple.

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That's fifty one dollars of the Normal Price. Get yours today online and amazon best buy or bit key dot world, that's A B I T K E Y dot world. As to the person who lost that role but still lending up as commerce secretary counterfeits jersey o Howard letton c may even have stronger ties to, other than previously understood, the trump transition team coach ir and newly nominated commerce secretary has never been shy about having tether as a customer.

Late, dear letton began speak publicly about managing the stable coins t bill reserves. He was never clear about exactly how much counterfeit shirl was managing, but implied ed IT was a large chunk of the firms, one hundred and thirty four billion and treasury ies still let them, was the first credible wall street trader to back up tetbury reserve at the stations. According to reporting from the wall street journal, IT seems that can terf its jerald relationship was more of a partnership than just a provision of services.

The wall street firm reportedly stood to perceive a five percent ownership stake and tethers as a result of the deal, the sharing the company was valued at around six hundred million dollars, according to their sources. For some, this raises further questions about letters x conflicts of interest, as these tends to take a senior role in the trumpet administration. Latin c recently confirmed that he plans to step down as counterfeits general CEO prior confirmation as commercial tary, he added in a statement, I intended I vest my interest in these companies to comply with U.

S. Government ethics rules and do not expect any arrangement which involve selling shares on the open market. This good privity plans to place his shares in a blind trust, stepping away from shareholder control but maintaining his financial interest.

However, the wall street journalists reporting tether co founder john carlo deva siny is stating that letta could use his quote, political cloud to defuse threats facing tethers. That quote is periphrase from business associates rather than directly attributed to device ini. Teller is, of course, currently rumor to be under investigation by the treasury in the D.

O. J. Teller, however, dismissed the suggestion with a spokesperson stating that is relationship with counter is entirely professional based on managing reserves. The game that linux involved in a transition team somehow translates to influence over a regulation actions is laugh. It's worth noting the wall street journal has been fairly sealed and its reporting on tother over recent years.

They often amplify talking points adopted to BIOS, but warned about the scope of money launder ing and terrorist financing enabled by the coin. And even if there is a particular slant to IT, it's probably broadly reflective of the type of media coverage that lightning is going to face given these existing relationships. Couple more appointed stories.

The biggest resignation we've had so far is, of course, gary ginza er, whose planned departure made massive headlines on friday. But another high profile departure could leave the way for a major shakeup at the sec. Democrat commissioner Jimmy lazarre announce that he would be ending term early and stepping away from the agency on january is seventeenth.

Now he is dealing with a genuinely tragic situation with his family is so that shouldn't be read as anything but putting his family first. His departure, though, means that the trumpet administration will be physic to appoint one democrat and one republican commissioner from day one, including a replacement chair. This means we could see a procymidone democrats installed on the commission, further dismantling against their legacy N.

S. C, C, leadership republican commissioner has to purse is set to end her her term in twenty twenty five, and has implied he has no intention of seeking another term that adds another republican at to be filled by late next year. S, C, C, commissioner ers are traditionally confirmed by the senators.

Like cabinet positions. The confirmation process could drag out well into next summer if senate republicans refuse to allow to be bypassed by research, pointless and the interm. The S C C could be a still me.

When IT comes to create a decision making. S C C rules require all three commissioners to agree when two seats are vacant. The last remaining democrat commissioner's, Caroline cronshaw, who at times have seemed even more and eclipse than gangster.

Er assuming cranch a doesn't have a change of heart, this means the S C C won't be able to make reveal crp to rules. While gangers crypto rule making agenda was quite sparse. This could hold up the repeal of SAB11， which prevents banks from offering crept custody. The smaller commission could also represent a road blocks of getting lawsuit settled.

Still, the big takeaway that a procyta democrat could be in place as soon as january and make an immediate start on reshaping the agency with the benefit of a few days, industry figures are starting to reflect on the implications of the ginza era coming to an end regarding active lawsuits. Pen terror chief legal officer catrin a. Aguila said, I think what we're going to see as some settlements SHE, note that, that the sec could just actually go in and by emotions to dismiss and withdraw all of their claims.

But added, I don't think that's going to happen. I think that's just too far of a stretch. Instead, SHE believes we will see nominal finance and standard language that firms neither admit nor deny allegations, adding they're going to quietly go away.

The defendants will pay something moving forward, hagler said. I think we are hopeful that will start to see some no action letters coming out of the S. C, C. No action letters were in common use prior against er, they allow a firm to come into the S, C, C, explain what they planned to do and work with the agency on a reasonable exemption. They know action refers to the sec guarantee that they won't take enforcement action based on the disclosed business plan.

The shift of culture would be a huge boom for the industry as we await final rule making that would allow products like mathematics, wallet or crack in staking program, which exists in the grey area, to get some love. Regulatory clarity in the short term. On a more philosophical point, just in slaughter, paradise had a regular ory affairs discuss against legacy for context.

Slaughter is a lifelong g democrat and has worked at the S, C, N, C, F, T, C. He had a brief f stint as a senior ACC adviser in the early days of the biden admin. Cancer was installed this chair, slaughter said.

There's not a lot that's going to last from kinzers time at the sec. We haven't seen any major S, C, C efforts and regulation of cypher. The biggest thing they can say they accomplish is a bit of lawsuits that likely ongoing to go anywhere.

It's ironic. But the biggest take away from me at this point is the gary against her chairmanship is just being wiped away like a racing, a choko ard. All of the things that felt so powerful, so significant, all the statements of the speeches is all just gone.

That, I think is the most striking thing that you can be empower for a long time. And if you're not focused on actually making things that are sustainable and persistent that will survive the test of time, you're not going to do much more than engaging and fancy form of regular ory cosplay. Perfect conclusion for this very regulatory epo de of the breakdown to give you a sense of what happening this week.

Obviously, it's thanksgiving in the us. We will have Normal episode on monday, tuesday, day, wednesday were off for thursday, back on for friday, off saturday as per usual, and then a long way sunday on sunday. And we will be back Normal in december.

Appreciate you listening as always. And until next time, be safe and take care of each other. peace.