Private equity billionaire Marc Rowan, who has emerged as a contender for the Treasury Secretary post, has openly admitted to being "out of my depth" when it comes to understanding cryptocurrency's role in the U.S. financial system.
What Happened: In a recent podcast with economist Tyler Cowen, the CEO of Apollo Global Management reflected on the complexities of cryptocurrency within the financial sector.
Rowan criticized the limited understanding of crypto among prominent figures, including potential policymakers.
He said, "Out of my depth. Absolutely no idea," when asked directly about crypto's future role in the U.S. financial system.
Rowan further highlighted the potential for stablecoins and on-ramps to streamline the financial system but dismissed the relevance of alternative currencies in a regulated environment.
"I see every opportunity for [stablecoins] to reduce the cost, to reduce the friction of dealing with the financial system," Rowan said.
However, he added, "In a KYC-AML world, I don't see a value for an alternative currency."
While Rowan was candid about his own lack of involvement in crypto through Apollo, his remarks raised questions about Warsh's readiness to tackle the growing importance of digital assets as a key component of financial policy.
Why It Matters: Prediction market Polymarket currently places former Federal Reserve Governor Kevin Warsh as the leading candidate for the Treasury Secretary position, with a 50% chance.
Other contenders are hedge fund manager Scott Bessent (20%) and Rowan (20%). However, the volatile market reflects the participants’ uncertainty, with Bessent’s and Rowan’s chances having traded above 50% in recent days.
Elon Musk also weighed in on the selection process, using his social media platform X to endorse Howard Lutnick, CEO of Cantor Fitzgerald, for the position.
While Lutnick was recently picked to lead the Commerce Department, Musk's public endorsement added another layer of speculation and reshaped the dynamics of the Treasury Secretary race.
Reports indicate that infighting among camps supporting Bessent and Lutnick has frustrated Trump, prompting him to consider alternatives.
Rowan's candidacy has reportedly gained momentum following Lutnick's commerce appointment, while Bessent remains a strong competitor despite internal disputes.
The Treasury Secretary's role in shaping policies around these technologies will be critical as the U.S. faces growing competition from countries advancing their own central bank digital currencies (CBDCs).
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