Treasury Secretary Scott Bessent sparred with Democratic members of the House Financial Services Committee on Wednesday, with one calling him a “flunky” for failing to criticize investment from United Arab Emirates officials in the Trump family’s cryptocurrency venture.
Rep. Gregory Meeks, D-N.Y., probed Bessent on alleged conflicts of interest and lack of transparency related to World Liberty Financial, which was co-founded by Trump’s family members.
“When a foreign-linked investor is putting hundreds of millions of dollars into a company controlled by the president’s family, and at the same time, this president is conducting foreign policy with that country … it creates a national security concern,” Meeks said.
Meeks asked Bessent to commit to a complete investigation into the “conflicts of interest and foreign influence” and to pause any bank charter or licensing applications at the Office of the Comptroller of the Currency, an independent arm of the Treasury that regulates banks.
“The OCC is an independent entity,” Bessent said, over the shouts of Meeks, without addressing the topic further.
“Stop covering for the president. Stop being his flunky,” Meeks said.Â
The Wall Street Journal reported Saturday that a royal and top government official from the UAE last year bought a $500 million stake in World Liberty Financial. President Donald Trump and his special envoy, Steve Witkoff, are co-founders emeritus of the company, which is run by members of the Trump and Witkoff families.
Trump, when asked by CNBC about the investment from the UAE in the Oval Office on Monday, said, “I don’t know about it.”
“I know that crypto is a big thing, and they like it. A lot of people like it. The people behind me like it. My sons are handling that. My family is handling it, and I guess they get investments from different people,” the president continued, referring to attendees at an event who were standing to his rear.
US Treasury Secretary Scott Bessent testifies during a House Financial Services Committee hearing on “The Annual Report of the Financial Stability Oversight Council” on Capitol Hill in Washington, DC, on February 4, 2026.
Alex Wroblewski | Afp | Getty Images
Bessent’s appearance before the House committee was the first of two scheduled on the Hill this week. On Thursday, he is due to appear before the Senate Banking, Housing and Urban Affairs Committee.
During his testimony, Bessent warned against overregulation, characterizing the Biden-era approach as “regulation by reflex” that stymied financial institutions.
“In calibrating regulations, federal agencies must avoid the temptation to create a zero-risk financial system, which would result in what others have called, ‘the stability of the graveyard,'” Bessent said. The [Financial Stability Oversight Council] “should aim to identify vulnerabilities that could lead to systemic crises and encourage the private sector to mitigate those risks before recommending additional regulation.”
Democrats also pressed the secretary on inflation, housing affordability and regulation of cryptocurrencies, while Bessent took a combative stance.
On several occasions, Bessent was asked to weigh-in on the independence of the Federal Reserve, a contentious issue as Trump and his allies have for months targeted Federal Reserve Chair Jerome Powell over his refusal to lower interest rates to the extent the president desired. Powell on Jan. 11 revealed that he was the subject of an unprecedented investigation by the Department of Justice relating to cost overruns at the Federal Reserve headquarters, raising the alarms of Trump critics.
“I believe in the independence of the Federal Reserve, but I also believe in accountability,” Bessent told lawmakers. But that independence was threatened because “the Federal Reserve lost the trust of the American people when it allowed the greatest inflation of 49 years to ravage working people in this country.”
Trump this week doubled down on the investigation, even as Sen. Thom Tillis, R-N.C., has vowed to block the nomination of Kevin Warsh, the president’s pick to succeed Powell, unless the probe is dropped. Powell’s term ends in May.
House Financial Services ranking member Maxine Waters, D-Calif., called the DOJ’s case against Powell “a baseless criminal investigation … to bully the Federal Reserve so they serve Trump’s agenda instead of the American people.”
In another tense exchange, Waters pressed Bessent on whether tariffs were inflationary.
Citing a report from the Federal Reserve Bank of San Francisco, Bessent said they are not. He instead offered immigration as an explanation for inflation, particularly in the housing and rental markets. He cited a separate study from the University of Pennsylvania’s Wharton School that found inflows of immigration contributed to higher housing costs.
Waters asked the Treasury secretary to be the “voice of reason” in the administration on affordability issues, as Bessent ignored her question and spoke over her.
“Can you shut him up?” Waters appeared to ask Chairman French Hill R-Ark.
“Can you maintain some level of dignity?” Bessent replied.
— CNBC’s Eamon Javers and Garrett Downs contributed to this report.
