The White House blame game over the Nvidia spy scandal spilled into public view on Friday, with Treasury Secretary Scott Bessent suggesting the Commerce Department should have taken more action on the artificial intelligence chipmaker’s sales to China.

Commerce Secretary Howard Lutnick has faced mounting scrutiny on Capitol Hill for his reported failure to restrict the sale of advanced Nvidia chips to China after receiving U.S. intelligence that the company’s CEO, Jensen Huang, was in a relationship with a suspected Chinese spy. Huang resigned on Thursday following reports of that affair and another one involving an Nvidia executive who reported to him at the time.

When asked Friday about the delay in blacklisting the Singapore-based company Megaspeed, where the suspected spy was a top executive and which bought Nvidia chips, Bessent told CNBC’s “Squawk Box” that it was the Commerce Department’s responsibility. Megaspeed had been accused of helping China evade export control rules.

“Commerce has the pen,” Bessent said, after insisting that several other top agencies, including the Treasury, Defense and State departments, were “in favor” of blacklisting Megaspeed “for months.”

“You will have to ask them about their internal processes,” Bessent said of the Commerce Department.

Bessent’s finger-pointing comes amid reports that President Donald Trump is considering whether to fire Lutnick over the scandal. So far, the White House has stood by Lutnick.

“I am frustrated when President Trump made it very clear that China should not receive any Nvidia chips above A100s,” Bessent told CNBC on Friday, seeming to suggest that he believed the Commerce Department defied Trump’s wishes on chip sales.

The Commerce Department did not immediately respond to MS NOW’s request for comment about Bessent’s remarks.

Lutnick has agreed to testify before the Republican-led Senate Banking Committee as concerns rise that the Trump administration prioritized private tech companies’ interests over national security.

“Secretary Lutnick has proactively agreed to appear voluntarily before the Banking Committee to address their questions,” a Commerce Department spokesperson told MS NOW.

The Commerce Department oversees the agency directly responsible for approving exports of advanced AI chips and semiconductors. The department’s chip export policies have been the subject of criticism from lawmakers and national security experts since Lutnick took the reins.

Those concerns have intensified in recent days amid reports that the alleged spy’s company, Megaspeed, was greenlit by the Commerce Department to buy Nvidia’s advanced chips earlier this year. The Commerce Department had abruptly stopped an investigation into the company last year and transferred the case to the Justice Department, The New York Times reported earlier this month, citing current and former government officials and others familiar with the incident.

Lutnick has mirrored Huang’s friendly position on the export of advanced AI chips to China, clashing at times with top Trump administration officials who have sought to implement strict export controls on the cutting-edge technology. He has shared a close relationship with the former Nvidia CEO since becoming a member of Trump’s Cabinet.

This is a developing story. Check back for updates.

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