Treasury Secretary Urges Swift Passage of Clarity Act to Calm Crypto Markets

U.S. Treasury Secretary Scott Bessent is urging lawmakers to swiftly pass the Clarity Act to establish a comprehensive federal framework for cryptocurrencies.

In an interview with CNBC, he reignited momentum for the bill, suggesting that it would deliver much-needed regulatory clarity to the broader crypto sector.

Key Points 

• U.S. Treasury Secretary Scott Bessent is urging Congress to fast-track the Clarity Act to establish clear federal crypto regulations. 
• He believes swift passage is critical to restoring confidence in highly volatile digital asset markets. 
• While the legislation has made key progress in the Agriculture Committee, it has faced major resistance in the Banking Committee. 
• He highlights ongoing bipartisan efforts in Congress to advance the legislation and deliver it to the president’s desk in the spring. 

Senate Should Deliver Clarity Act to Trump’s Desk This Spring 

During the interview, Bessent pressed the Senate to act quickly, stressing that clear regulatory rules are critical to restoring investors’ confidence. This aligns with a similar view shared by Senator Cynthia Lummis, who recently urged her colleagues to pass the bill before it becomes too late.

Bessent emphasized the need to deliver the bill to Donald Trump’s desk for approval this spring. In his view, the legislation would provide long-awaited clarity for investors and firms amid heightened market turbulence.

His remarks followed another sharp crypto market downturn, during which Bitcoin fell to $65,000 yesterday. Although Bitcoin has since rebounded above $67,000, analysts still describe the market as highly volatile.

Mixed Progress on Clarity Act’s Passage 

Meanwhile, the bill has faced mixed progress in the Senate. While it advanced in the Senate Agriculture Committee in late January, the bill encountered significant resistance over a draft from the Senate Banking Committee. 

Notably, provisions banning stablecoin yields drew backlash from industry players, including Coinbase, which withdrew its support. Consequently, the Banking Committee halted its planned markup for the bill.

The White House later stepped in, convening crypto and banking executives in an attempt to broker a compromise. Although the meeting ended without a breakthrough, reports indicate officials have set a late-February deadline for an agreement. 

Bipartisan Group Working Toward Advancing the Bill 

Meanwhile, Bessent acknowledged the ongoing challenges, noting that some industry participants are actively working to block the bill’s passage. However, he emphasized that a bipartisan group of lawmakers remains firmly committed to advancing the legislation.

In addition, he cautioned that shifting political dynamics could derail progress. Specifically, he warned that if Democrats take control of the House in November, the fragile bipartisan coalition backing the bill could collapse, thereby jeopardizing its prospects. 

While the Senate Banking Committee has yet to reschedule its markup, White House Crypto Advisor Patrick Witt believes all pending issues will be resolved, potentially paving the way for the Clarity Act’s passage.