Treasury’s Bessent Urges Crypto Industry to Back CLARITY Act
- Washington’s ongoing struggle to regulate the cryptocurrency industry is increasingly seen as a drag on market stability, with Treasury Secretary Scott Bessent publicly urging swift passage of the...
- Speaking on CNBC, Bessent stated that the current volatility in the crypto market is, in part, “self-induced” due to resistance from within the industry itself.
- The CLARITY Act aims to establish a clear regulatory framework for digital assets, a long-sought goal for both lawmakers and industry participants.
Washington’s ongoing struggle to regulate the cryptocurrency industry is increasingly seen as a drag on market stability, with Treasury Secretary Scott Bessent publicly urging swift passage of the CLARITY Act. Bessent warned Friday, , that delays could prove fatal to the legislation, particularly if control of the House of Representatives shifts in the upcoming midterm elections.
Speaking on CNBC, Bessent stated that the current volatility in the crypto market is, in part, “self-induced” due to resistance from within the industry itself. He specifically cited concerns that some crypto firms are actively blocking the CLARITY bill, preferring no regulation to a framework they deem unfavorable. “There has been a bipartisan working group and there is a group of Democrats that want to work with Republicans on getting a market structure bill, it’s called the CLARITY bill, but Notice a group of crypto firms who have been blocking it,” Bessent said. “They said, ‘Well, we’d rather have no legislation than this legislation,’ and that doesn’t seem to have been good for the overall crypto community.”
The CLARITY Act aims to establish a clear regulatory framework for digital assets, a long-sought goal for both lawmakers and industry participants. The bill has faced significant headwinds, most recently after Coinbase, one of the largest cryptocurrency exchanges in the U.S., withdrew its support in January. Despite ongoing discussions between industry executives, banking representatives, and regulators at the White House, a deadlock persists.
Bessent’s comments underscore the growing pressure on Congress to address the regulatory uncertainty surrounding crypto. He emphasized the importance of passing the bill “as soon as possible” and having it signed by President Donald Trump this spring – between late March and late June – before the political landscape potentially shifts with the midterm elections. He warned that a Democratic takeover of the House could effectively kill the legislation, referencing what he described as a historically negative stance towards crypto under the Biden administration, which he characterized as leading to “almost an extinction event” for the sector.
The Treasury Secretary’s remarks align with those of Securities and Exchange Commission (SEC) Chairman Paul S. Atkins, who on , advocated for legislation like the CLARITY Act as the most effective way to provide long-term certainty to crypto markets. Speaking at a Senate Banking Committee hearing, Atkins stated, “There is no action You can take that future-proofs our rulebook more formidably than nonpartisan market structure legislation.”
Bitcoin, the leading cryptocurrency, has experienced a significant downturn, losing roughly half its value since reaching a record high in October 2025. Ethereum, the second-largest cryptocurrency by market capitalization, has fared even worse, with its value dropping 58% from its August peak to $2,048 as of . This market volatility has fueled calls for regulatory clarity, with proponents arguing that a well-defined legal framework would restore investor confidence and encourage further innovation.
Bessent highlighted the broader economic benefits of a thriving crypto industry, pointing to the innovation occurring in blockchain technology and decentralized finance (DeFi). He suggested that establishing the U.S. As a leader in these areas requires a supportive regulatory environment. “There’s a lot of innovation that goes on adjacent to crypto, in the blockchain, in DeFi, so I think it’s important to get this CLARITY bill done as soon as possible and on the president’s desk this spring,” he said.
The fate of the CLARITY Act remains uncertain, but the increasing pressure from both the Treasury Department and the SEC suggests that lawmakers are facing growing scrutiny to resolve the regulatory impasse. The potential for a shift in the balance of power after the midterm elections adds a sense of urgency to the situation, raising the stakes for the crypto industry and its future in the United States.
The current deadlock highlights the complex challenges of regulating a rapidly evolving industry. While there is broad agreement on the need for regulation, disagreements persist over the specific details, particularly regarding issues such as investor protection, market integrity, and the role of decentralized technologies. The outcome of the CLARITY Act debate will likely have far-reaching implications for the future of crypto in the U.S., shaping its growth trajectory and its integration into the broader financial system.