US Treasury Secretary Scott Bessent has renewed his push for the CLARITY Act, warning that further delays could erode America's global financial edge. Speaking on the urgency, Bessent drew comparisons between the US and jurisdictions like Singapore and Abu Dhabi—both of which have already enacted clear rules for crypto and blockchain. He argued that the US must align with the Trump administration's ambition to become the "crypto capital of the world."
Bessent Takes Aim at 'Recalcitrant Actors' as Market Suffers
According to Bessent, the current lack of regulation is fueling volatility in the cryptocurrency market and triggering risk-averse sentiment among investors. He urged the Senate to pass the CLARITY Act by April, with a presidential signature expected before the first half of the year. This timeline is deliberately set to avoid election season gridlock. In his remarks, Bessent criticized "recalcitrant actors" and "nihilists" who oppose any regulatory framework, calling them obstacles to national progress.
Stablecoin Yield Dispute Held Up Progress
The CLARITY Act has been stuck since its introduction last year due to a disagreement between stablecoin issuers and traditional banks. Banks argue that stablecoin yields undermine their retail deposits and pose serious risks to their business models. However, White House economists recently dismissed those claims, stating that banning stablecoin yields would not threaten deposits but would hurt consumer welfare.
70% Odds and Trillions at Stake
Current estimates give the CLARITY Act a 70% chance of passing the Senate before the first half of 2026. If enacted, the law would clarify the roles of different regulatory agencies in the crypto space and adopt a "pro-innovation" stance rather than strict enforcement. It could also unlock trillions of dollars from institutional investors who have stayed on the sidelines due to legal uncertainty. Bessent's latest remarks signal that the White House is treating crypto legislation as a priority, and the fate of the CLARITY Act will be a key indicator of whether the US can maintain its lead in the global crypto race.