What to Know:
- U.S. Treasury Secretary Scott Bessent is urging Congress to pass the Crypto Clarity Act this spring.
- The bill would create clear federal rules for crypto and split oversight between key regulators.
- Supporters say it could bring stability and confidence after recent crypto market volatility.
U.S. Treasury Secretary Scott Bessent has urged Congress to quickly pass a major crypto regulation bill known as the Clarity Act, saying the industry needs clear rules as soon as possible. He said lawmakers should send the bill to President Donald Trump’s desk this spring so it can be signed into law and bring more stability to the digital asset market.
Speaking in recent TV interviews, Bessent said the recent ups and downs in crypto prices show why the United States needs a proper legal framework for digital assets. According to him, clear rules would give confidence to both companies and investors during a time of market uncertainty. He said the Clarity Act could bring “great comfort to the market” and help the industry grow in a more structured and safer way.
Why the Clarity Act Matters
The Clarity Act, formally called the Digital Asset Market Clarity Act, is designed to create a nationwide rulebook for crypto in the U.S. For years, crypto companies have faced confusion because different regulators have taken different approaches. This has led to legal fights, mixed messages, and delays in innovation. The bill aims to clearly divide responsibilities between two main regulators. One agency would oversee tokens that act like investments, while another would oversee digital commodities like Bitcoin in spot markets. This split is meant to reduce confusion over who controls what.
The bill also includes rules for stablecoins, companies that hold crypto for customers, and trading platforms. It sets basic standards for safety, reporting, and customer protection. Supporters say these steps are needed to protect users, attract large investors, and help the U.S. compete with other countries that are moving faster with crypto rules.
Market Volatility Adds Urgency
Bessent linked his push for faster approval directly to recent crypto market volatility. Prices across the sector have seen sharp swings, and lawmakers asked whether the bill had lost momentum because of the downturn. He argued the opposite. He said market stress is exactly why clear laws are needed now, not later.
According to Bessent, without proper rules, companies and investors are left guessing. With rules in place, businesses can plan better and users can feel safer about participating in crypto markets. He said Congress should use the current spring legislative window to move the bill forward before political shifts later in the year make cooperation harder.
Why the Bill Stalled Earlier
Progress on the Clarity Act slowed earlier this year after major crypto exchange Coinbase pulled its support for a Senate draft version of the bill. The company objected to parts of the proposal that would limit rewards paid on stablecoin holdings. Coinbase’s leadership argued that such limits could make U.S. crypto platforms less competitive. Banking groups, however, warned that high rewards on stablecoins could draw deposits away from traditional banks.
Because of this disagreement, lawmakers delayed planned committee action and returned to private negotiations. Bessent said a small group of resistant players on different sides has slowed compromise, but he believes a broader bipartisan group of lawmakers still wants the bill passed.
What Happens Next
Lawmakers are continuing closed-door meetings to resolve key disputes around stablecoin rewards, regulator powers, and national security concerns. Another committee review session is expected if enough agreement is reached.
Bessent said passing the Clarity Act is important for keeping crypto innovation inside the United States instead of pushing companies overseas. He added that both many traditional financial firms and many crypto companies now agree that a clear legal structure is better than continued uncertainty. He has also recently stated that the U.S. plans to hold seized Bitcoin rather than sell it, as part of a longer-term digital asset strategy.
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