CBS News
Hegseth strikes defiant tone as Trump weighs several options for replacing him
Washington — President-elect Donald Trump’s choice to lead the Pentagon, Pete Hegseth, is showing defiance amid misconduct allegations as support for his confirmation appeared to be in doubt. There are now several candidates under consideration to replace him as Trump’s intended nominee, sources familiar with the transition tell CBS News, among them, Florida Gov. Ron DeSantis and Iowa Sen. Joni Ernst.
But the embattled former Fox News host on Wednesday pushed back on reports that Trump is considering other candidates for defense secretary. On Capitol Hill on Wednesday morning, as he continued to visit Republican members of Congress, Hegseth told CBS News that he does not intend to withdraw his name from consideration. He also said he spoke with Trump Wednesday morning, and the president-elect encouraged him to keep fighting.
“I spoke to the president-elect this morning. He said, ‘Keep going, keep fighting. I’m behind you all the way,'” Hegseth said. “Why would I back down? I’ve always been a fighter. I’m here for the fighters. This is personal and passionate for me.”
In an interview with conservative commentator Megyn Kelly on Wednesday, Hegseth said he had spoken with Trump earlier in the day and that the incoming president had told him, “I’ve got your back.” On reports of the possibility that DeSantis could replace him as defense chief nominee, he told Kelly, “It’s all the president’s choice. I spoke to the president this morning. He said, I’m his guy.”
Despite the acrimony between DeSantis and Trump during the primary campaign, the Florida governor is interested in the job, according to two sources familiar with DeSantis’ thinking. His second and final term as governor ends in January 2027. Trump has already announced a series of Cabinet nominees who hail from Florida, including Sen. Marco Rubio, for secretary of state. Although serving as defense secretary would pose some political risk, DeSantis believes it would position him well for a presidential run in 2028, the source said.
Hegseth, a former “Fox & Friends” weekend co-host and Army veteran, has been meeting with Senate Republicans in recent weeks to build support for his confirmation. But reports in recent days that detailed alleged sexual misconduct, financial mismanagement at veterans’ charities, repeated intoxication and infidelity appeared to be softening his support. Some Senate Republicans have called the allegations “disturbing” and said they came as a surprise.
Still, Hegseth on Wednesday told reporters at the Capitol his meetings with Senate Republicans have been “a wonderful process.” In his interview with Kelly, Hegseth said, “No one has looked me in the eye and said, ‘I have concerns and I can’t vote for you.’ In fact, most have said, ‘Let’s take a picture, and I’m behind you all the way.”
Hegseth also defended himself in an opinion piece in the Wall Street Journal Wednesday. Amid reports about his removal as the head of a veterans’ charity over allegations of financial mismanagement, intoxication, sexual misconduct and fostering a toxic work climate, Hegseth wrote of his work for that organization, Concerned Veterans for America.
“We fought entrenched interests and mobilized veterans and patriotic Americans across the country,” he said, denying reports of any misconduct and accusing the media of publishing falsehoods.
“We had hundreds of employees and thousands of volunteers—yet based on the anonymous accusations of a few disgruntled employees, the legacy media has made it sound as if we ran a college frat house,” he wrote. “That’s just untrue.”
Hegseth also said that he left CVA over “an internal difference of opinion about its future. I wanted to engage in foreign policy; our donors didn’t.” And he added that the group’s leadership “wrote me a glowing letter when I left.”
In his interview with Kelly, Hegseth addressed the sexual assault allegation that emerged in late November. He responded “absolutely not” when asked if he had raped a woman in a Monterey, California, hotel in 2017. He admitted that it would have once been a fair characterization to call him a “serial cheater” but says he has changed. “I may have been drinking, but I was cognizant enough to remember every single detail. And I’m not here to say that my conduct was good,” he said. “Being in a hotel room with someone that’s not the person you’re with is not OK. I own up to that, and I’ve had to own up to that, and that’s been difficult.”
He said he paid his accuser “because I had to — or at least I thought I did at the time.” He explained that he was newly married, was under consideration for a role in the first Trump administration and wanted to protect his family and his Fox News job.
He also responded to reporting by NBC News that cited current and former Fox News employees who said that “on more than a dozen occasions” while Hegseth was a “Fox & Friends Weekend” co-host, “they smelled alcohol on him before he went to air,” and appeared on TV “after they’d heard him talk about being hungover as he was getting ready or on set.” The report said “[t]hree current employees said his drinking remained a concern up until Trump announced him as his choice to run the Pentagon, at which point Hegseth left Fox.”
But in the op-ed, Hegseth did not directly address allegations about his alcohol consumption. “I’ve been at Fox News—where I saw my work as a continuation of my mission to fight for America. Again, the legacy press has used anonymous sources to try to discredit even that,” and he referred readers to his X feed for statements of support from professional colleagues. He did tell Kelly, “I’ve never had a drinking problem.”
North Dakota GOP Sen. Kevin Cramer is scheduled to meet with Hegseth Wednesday afternoon and told reporters earlier in the day, “The allegations are very, very serious. They can’t be trivialized. And I just want to know that, that he’s redeemed, and going forward, he’s going to be better.”
Cramer also added, “I think the mood of the conference is one of the pretty serious, really, really serious about it, and serious about how these things affect his ability to do the job, the ability of the troops to look up to him.”
He suggested the Republican conference was watching for signals from the Trump transition team about Hegseth.
“There’s the mood of the conference, and then there’s the mood of the Trump transition team itself,” he said. “So we’ll see what kind of messages and signals we hear throughout the course of the day. As you can tell, these things have been breaking pretty fast and furious.”
Cramer said of Ernst that she would be “easy to confirm, and I think she’d be great,” and in fact, “if she wanted it, she’d be my first pick.”
“I have never backed down from a fight and won’t back down from this one,” Hegseth wrote, adding, “I look forward to an honest confirmation hearing with our distinguished senators—not a show trial in the press.”
Hegseth has continued to meet with the Republican senators who will weigh in on his nomination. But one prominent Republican, Sen. Josh Hawley, told reporters Wednesday afternoon that Hegseth canceled their upcoming meeting.
“I was supposed to sit down with him tomorrow, but they canceled that meeting,” Hawley said.
“I don’t know where things stand at the moment,” he said of Hegseth’s expected nomination and added, “It’s not 100% clear to me who [Trump] wants as secretary of defense right now.”
Hegseth told Kelly he planned to keep meeting with senators to earn their support, but he acknowledged that there’s a possibility he may not be confirmed. “That’s the president’s call,” he said when asked whether he would withdraw from the process.
Jim Defede, Cristina Corujo contributed to this report.
,
Nikole Killion and
contributed to this report.
CBS News
Bitcoin price reaches $100,000-mark for first time ever
Bitcoin has topped the $100,000 mark as a massive rally in the world’s most popular cryptocurrency sparked by the election of Donald Trump rolls on.
The milestone comes just hours after the president-elect signaled a lighter regulatory approach to the crypto industry with his choice of Paul Atkins to be the next chair the Securities and Exchange Commission.
Trump said Wednesday that he intends to nominate Atkins, a former SEC commissioner during the presidency of George W. Bush. In the years since leaving the agency, Atkins has made the case against too much market regulation.
Bitcoin has soared to unprecedented heights since Trump won the election Nov. 5. The cryptocurrency has climbed dramatically from $69,374 on Election Day and rose as high as $101,512 Wednesday, just two years after dropping below $17,000 following the collapse of crypto exchange FTX.
How long bitcoin will stay above the coveted $100,000 mark is uncertain. As with everything in the volatile cryptoverse, the future is impossible to predict. And while some are bullish on future gains, other experts continue to warn of investment risks.
Current SEC chair Gary Gensler, appointed by President Biden, has been aggressive in his oversight of the crypto industry. Speaking at the Bitcoin 2024 conference in July, Trump vowed to fire Gensler if elected, prompting a standing ovation. Gensler has since said he will step down Jan. 20 when Trump takes office, even though his five-year term runs through 2026.
CBS News
Trump to nominate Paul Atkins, a cryptocurrency advocate, for SEC chair
President-elect Donald Trump announced Wednesday that he intends to nominate cryptocurrency advocate Paul Atkins to chair the Securities and Exchange Commission.
Trump said Atkins, the CEO of Patomak Partners and a former SEC commissioner, was a “proven leader for common sense regulations.” In the years since leaving the SEC, Atkins has made the case against too much market regulation.
“He believes in the promise of robust, innovative capital markets that are responsive to the needs of Investors, & that provide capital to make our Economy the best in the World. He also recognizes that digital assets & other innovations are crucial to Making America Greater than Ever Before,” Trump wrote on Truth Social.
The commission oversees U.S. securities markets and investments and is currently led by Gary Gensler, who has been leading the U.S. government’s crackdown on the crypto industry. Gensler, who was nominated by President Joe Biden, announced last month that he would be stepping down from his post on the day that Trump is inaugurated — Jan. 20, 2025.
Trump, once a crypto skeptic, had pledged to make the U.S. “the crypto capital of the planet” and create a “strategic reserve” of bitcoin. Money has poured into crypto assets since he won. Bitcoin, the largest cryptocurrency, is now above $95,000. And shares in crypto platform Coinbase have surged more than 70% since the election.
Paul Grewal, chief legal officer of Coinbase, congratulated Atkins in a post on X.
“We appreciate his commitment to balance in regulating U.S. securities markets and look forward to his fresh leadership at (the SEC),” Grewal wrote. “It’s sorely needed and cannot come a day too soon.”
Congressman Brad Sherman, a California Democrat and a senior member of the House Financial Services Committee, said he worries Atkins would not sufficiently regulate cryptocurrencies as SEC chair.
“He’d probably take the position that no cryptocurrency is a security, and hence no exchange that deals with crypto is a securities exchange,” Sherman said. “The opportunity to defraud investors would be there in a very significant way.”
Atkins began his career as a lawyer and has a long history working in the financial markets sector, both in government and private practice. In the 1990s, he worked on the staffs of two former SEC chairmen, Richard C. Breeden and Arthur Levitt.
His work as an SEC commissioner started in 2002, a time when the fallout from corporate scandals at Enron and WorldCom had turned up the heat on Wall Street and its government regulators.
Atkins was widely considered the most conservative member of the SEC during his tenure at the agency and was known to have a strong free-market bent. As a commissioner, he called for greater transparency in and analysis of the costs and benefits of new SEC rules.
He also emphasized investor education and increased enforcement efforts against those who steal from investors over the internet, manipulate markets, engage in Ponzi schemes and other types of fraud.
At the same time, Atkins objected to stiff penalties imposed on companies accused of fraudulent conduct, contending that they did not deter crime. He caused a stir in the summer of 2006 when he said the practice of granting stock options to executives before the disclosure of news that was certain to increase the share price did not constitute insider trading.
U.S. Rep. Patrick McHenry, a North Carolina Republican and chairman of the House Financial Services Committee, said Atkins has the experience needed to “restore faith in the SEC.”
“I’m confident his leadership will lead to clarity for the digital asset ecosystem and ensure U.S. capital markets remain the envy of the world,” McHenry posted on X.
Atkins already has some experience working for Trump. During Trump’s first term, Atkins was a member of the President’s Strategic and Policy Forum, an advisory group of more than a dozen CEOs and business leaders who offered input on how to create jobs and speed economic growth.
In 2017, Atkins joined the Token Alliance, a cryptocurrency advocacy organization.
Crypto industry players welcomed Trump’s victory in the hopes that he would push through legislative and regulatory changes that they’ve long lobbied for.
Trump himself has launched World Liberty Financial, a new venture with family members to trade cryptocurrencies.
CBS News
12/4: The Daily Report – CBS News
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