One dream choose for a crypto-friendly treasury secretary in Donald Trump’s second administration won’t be occurring, as outstanding hedge fund supervisor John Paulson stated in the present day that he gained’t be taking the job.
Talking about his choice, Paulson stated, “My complex financial obligations would prevent me from holding an official position.”
That admission is actually true. For instance, Paulson’s huge fairness positions in government-sponsored enterprises Fannie Mae and Freddie Mac, whose income are swept into the US Treasury, have greater than doubled in worth since Trump gained re-election. His battle of curiosity is actually evident.
With Paulson dropping out of the race, different contenders for the place embrace Key Sq. Group’s Scott Bessent, Cantor Fitzgerald’s pro-Tether Howard Lutnick, Jay Clayton, and Jamie Dimon.
Crypto advocates had pinned hope on Paulson
Some crypto proponents had initially seen Paulson as an incoming ally on this planet’s strongest sovereign treasury. Regardless of his earlier skepticism in the direction of digital belongings, optimism stemmed from Paulson’s status as a savvy investor who has confirmed allegiance to Trump for years.
Simply as Trump pivoted from anti- to pro-crypto throughout his profession, so too might need Paulson. Certainly, after a half dozen NFT collections, a DeFi undertaking, and varied pro-bitcoin guarantees, Trump has actually re-branded himself as a pro-crypto chief.
Many in crypto believed that Paulson’s understanding of economic markets and his willingness to embrace unconventional financial insurance policies might translate into a good regulatory surroundings for the category. His management on the 100,000+ worker treasury would have been a welcome reprieve from Janet Yellen’s anti-crypto reign.
They hoped his appointment may result in insurance policies that will encourage innovation in digital belongings and assist the expansion of bitcoin and different cryptocurrencies.
Though offshore binary choices markets like Polymarket don’t point out precise odds of success, Scott Bessent is at present the frontrunner for Trump’s Secretary amongst prediction market gamblers.
Though Paulson won’t be the nation’s subsequent Treasury Secretary, different pro-crypto contenders like Bessent and Lutnick are subsequent in line.
Because the Biden-to-Trump transition course of continues, the business will probably be watching carefully to see how treasury management impacts digital belongings throughout the second Trump administration.