US Treasury Secretary Scott Bessent testified before the Senate Banking Committee that he would not be surprised if Beijing uses Hong Kong's digital asset 'sandbox' to challenge American financial leadership. He urged passage of the Digital Asset Market Clarity Act to maintain US global dominance. Bessent mentioned rumors about Chinese digital assets but stressed that the US cannot confirm them.
Scott Bessent, US Treasury Secretary, told the Senate Banking Committee on Thursday that China may be exploring ways to challenge America's pre-eminence in digital assets through Hong Kong. Responding to a question from Wyoming Senator Cynthia Lummis, Bessent said: “We don’t know that for sure,” but noted there are “lots of rumours of Chinese digital assets” possibly backed by gold or something other than the yuan.
Bessent highlighted Hong Kong's “very large sandbox,” with the Hong Kong Monetary Authority actively traveling the world to examine different mechanisms. “They have a very large sandbox in Hong Kong, and the [Hong Kong Monetary Authority] is actively travelling the world, looking at different mechanisms,” he said. “So I would not be surprised.”
The warning underscores US-China rivalry in financial technology. Bessent urged Congress to pass the Digital Asset Market Clarity Act to counter Hong Kong's efforts and secure America's lead in digital assets. The hearing, held on February 6, 2026, focused on how blockchain and digital assets could build an alternative to American financial leadership.
