Treasury Secretary Scott Bessent pressed the cryptocurrency sector to support pending digital asset market structure legislation during Senate testimony. He criticized a faction within the industry for opposing regulation, amid ongoing disputes with banks over stablecoin yields. The comments aim to resolve a deadlock that has stalled the bill's progress.
In his appearance before the Senate Banking Committee on February 5, 2026, Treasury Secretary Scott Bessent called out what he described as a "nihilist group" in the crypto industry resistant to regulation. "There seems to be a nihilist group in the industry who prefers no regulation over this very good regulation," Bessent stated, urging broader support for the market structure bill.
The legislation has hit snags due to disagreements between bankers and crypto firms, particularly on provisions banning yields for stablecoin holders. Bank groups worry that lax rules could prompt deposits to shift away from traditional institutions. Last month, Coinbase pulled its endorsement after banks advocated for stricter language limiting third-party yield products. A planned committee markup was scrapped, and despite a White House meeting, talks remain stalled.
Senator Mark Warner, a Democrat from Virginia, endorsed Bessent's view, responding with "Amen, brother." Bessent affirmed his commitment: "I do [weigh in]. Early and often."
Analyst Jaret Seiberg of TD Cowen interpreted the remarks as an effort to unify the industry behind the Senate bill. "It is probably not possible to advance the legislation if the industry is divided," Seiberg noted.
This testimony capped two days of congressional hearings for Bessent, following discussions on banking reforms the previous day before the House Financial Services Committee. While the crypto push took center stage, Bessent also addressed related financial policy matters, though the focus remained on bridging divides in digital asset regulation.
