U.S. Treasury Secretary Scott Bessent has called on Congress to pass the Clarity Act this spring to provide regulatory clarity for digital assets amid market volatility. Speaking in interviews, he highlighted the bill's potential to stabilize markets and noted ongoing negotiations between crypto firms and banks. The legislation faces deadlock over issues like stablecoin rules, with a March 1 deadline for agreement.
U.S. Treasury Secretary Scott Bessent emphasized the urgency of passing crypto legislation during recent interviews. On CNBC, he urged lawmakers to deliver the Clarity Act to President Donald Trump’s desk for signature this spring, stating it would offer “great comfort to the market” during heightened volatility. Bessent noted that bitcoin and other digital assets have experienced significant price drops, with bitcoin falling roughly half from its October 2025 record high and ethereum declining 58% to $2,048 from its August high of $4,946.
The Clarity Act aims to establish clear federal rules for digital assets, addressing market structure and regulatory oversight. Bessent attributed current market instability partly to self-induced factors, including resistance from some crypto firms and Democrats blocking the bipartisan effort. He told Fox News that “what we’re seeing in the crypto market over the past few months means more than ever that the U.S. needs market structure, we need clarity, and we need to get this across the line this spring.”
Negotiations have intensified, with crypto executives from firms like Coinbase and Ripple meeting White House officials and banking representatives over the past month. Coinbase withdrew support in January, stalling progress, but recent meetings were described as “productive” with “progress made.” A key dispute centers on stablecoin regulations: banking executives warn that yield-bearing stablecoins could divert deposits from banks, limiting lending to businesses, while crypto companies argue restrictions would hinder innovation in blockchain and DeFi.
At a Senate Banking Committee hearing, Bessent supported embedding digital asset innovation under “safe, sound, and smart” oversight. He addressed concerns from Senator Cynthia Lummis on potential tax exemptions for small bitcoin transactions and capital gains calculations, offering Treasury engagement. Bessent also clarified that the government cannot bail out bitcoin or mandate banks to hold crypto, and seized bitcoin will be retained in the Strategic Bitcoin Reserve rather than sold. The coalition's momentum risks fading if Democrats regain House control in November, underscoring the spring timeline's importance.
