Trump replaces IRS commissioner with pro-crypto Treasury chief Bessent

Donald Trump has removed Billy Long as IRS Commissioner just two months after his confirmation, replacing him with Scott Bessent, the pro-crypto Treasury Secretary [1]. This abrupt leadership change has drawn attention from both political and financial sectors, particularly given Bessent’s public advocacy for cryptocurrency. The shift underscores the administration’s ongoing strategy to consolidate authority among trusted allies and align regulatory bodies with its ideological and policy objectives [3].

Long’s short tenure was marked by internal challenges, including a high-profile public disagreement between Bessent and Elon Musk, a prominent Trump supporter [3]. Despite the controversy, Long did not protest his removal, instead announcing his appointment as a U.S. ambassador to Iceland and expressing optimism about the move [3]. The rapid succession of IRS leaders—now the sixth in a year—highlights the administration’s preference for swift, decisive action in executive appointments, often reflecting broader political priorities [3].

Bessent, who previously led the Treasury Department, has been a central figure in the development of the Republican tax reform bill passed earlier this summer [3]. His appointment signals a potential realignment in how the IRS approaches the regulation and taxation of digital assets. While no immediate market reaction has been observed, analysts are closely watching for any regulatory shifts that may emerge under Bessent’s leadership [1].

The IRS has already been tasked with implementing major changes, including a technology overhaul and large-scale workforce reductions [3]. Bessent’s hands-on management style is expected to bring a more direct approach to these initiatives. At the same time, the agency remains a key enforcement arm in Trump’s broader strategy to revoke tax-exempt status from universities and nonprofit organizations deemed to have opposing political views [3]. This aligns with the administration’s focus on reshaping the IRS’s role in tax oversight and ideological enforcement [1].

While the appointment raises speculation about future regulatory changes, particularly in the crypto sector, there have been no official policy statements or guidance issued at this time [1]. Market participants remain cautious, noting that past leadership changes have not necessarily led to immediate financial market impacts without accompanying policy actions. The absence of public commentary from Trump, Bessent, or Long further underscores the unpredictability of the administration’s internal dynamics [1].

As the IRS moves forward under Bessent’s interim leadership, observers will be looking for signs of how this shift might affect the agency’s operational priorities, enforcement strategies, and regulatory approach—especially in the evolving landscape of cryptocurrency and digital assets [3].

Sources:

[1] Trump Ousts Billy Long as IRS Commissioner, Names Bessent ... (https://www.yahoo.com/news/articles/trump-ousts-billy-long-irs-193842907.html)

[2] Trump to remove Billy Long as IRS Commissioner (https://www.foxbusiness.com/politics/trump-removing-irs-commissioner-billy-long-serving-just-two-months-role)

[3] IRS Commissioner Long to Depart, With Bessent Now Acting ... (https://news.bloombergtax.com/daily-tax-report/irs-commissioner-long-to-depart-with-bessent-now-acting-head)