U.S. Treasury Secretary Scott Bessent on Wednesday publicly criticized lawmakers for stalling the CLARITY Act, a key crypto regulatory bill, warning that continued inaction is driving innovation offshore. In a Fox News interview, Bessent said the industry can no longer afford regulatory limbo, adding that clear rules are needed “now more than ever.”
Treasury Secretary Rejects ‘No Bill Is Better’ Argument
Coinbase CEO Brian Armstrong had earlier argued that “no crypto bill is better than a bad one.” Bessent pushed back directly, saying outright rejection of legislation keeps the industry stuck in uncertainty. While admitting the current draft is imperfect, he called compromise unavoidable if the U.S. wants to lead in digital assets. “For crypto to move forward as a serious digital asset class, this bill needs to get done,” he said.
With Donald Trump again pledging to make the U.S. the “crypto capital of the world,” Bessent said passage of crypto legislation is inevitable and a small opposition group should not block progress for the entire sector.
White House Talks: Banks vs. Crypto Firms Over Stablecoins
Today’s White House meeting marks the second round of high-level discussions among crypto companies, banks, and regulators. Last week’s session ended without agreement, leaving the CLARITY Act stalled in the Senate. The current deadlock centers on whether crypto firms should be allowed to offer yield-bearing stablecoins—a move banks strongly oppose on grounds it would drain deposits and give non-bank players an unfair edge.
If talks fail again, market confidence could weaken, pushing more projects abroad and slowing U.S. crypto growth.
Fed ‘Skinny’ Master Accounts Become Another Flashpoint
A second major roadblock tied to the CLARITY Act is the Federal Reserve’s proposal for limited-access “skinny” master accounts. Crypto firms argue this access is necessary for stablecoin growth and consumer protection. Banks counter that it would threaten traditional deposits and create an uneven playing field. The dispute remains a key obstacle to passing the bill.
Analyst Warns: Failed Talks Could Weigh on Bitcoin
Crypto analyst CryptoSymbiote warned that today’s meeting could increase market pressure if no deal is reached. The main risk is the unresolved stablecoin yield debate, with banks pushing to block it and crypto firms defending it as essential. If lawmakers fail to settle the issue, the decision could slip past the 2026 midterm elections, extending regulatory uncertainty for years. Combined with broader economic stress and weak price action, Bitcoin could fall well below current levels before finding a stable bottom, he said.