Treasury Secretary Calls for Spring Crypto Legislation
U.S. Treasury Secretary Scott Bessent said Friday that Congress must move quickly to pass crypto legislation that establishes clear federal rules for digital assets, urging lawmakers to deliver the bill to President Donald Trump’s desk for signature this spring. Speaking on CNBC, Bessent was asked about the status of the proposed “Clarity Act” amid a recent sell-off across the crypto market. He said the bill would provide “great comfort to the market” during a period of heightened volatility, signaling the administration’s push to create a more defined regulatory framework for the sector.
Bessent warned that the coalition's momentum could weaken if Democrats regain control of the House of Representatives in November. Last week, he urged Congress to pass the legislation, warning that the U.S. needs clear crypto market structure rules before the spring legislative window closes. 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.” Bessent blamed the current stalemate on resistant factions within both the crypto industry and traditional finance, with disputes centering on stablecoin yield restrictions and regulatory oversight.
Resistance and Bipartisan Cooperation
Bessent noted that some crypto firms have attempted to block the legislation, but there remains a bipartisan coalition of lawmakers committed to advancing the bill. He warned that the coalition’s momentum could weaken if Democrats regain control of the House. The current impasse involves both crypto companies fearful of overly strict rules and traditional financial institutions worried about stablecoin disruption. Key disputes include whether to allow stablecoins to generate yields and which agency should oversee them.
During a Senate Banking, Housing and Urban Affairs Committee hearing, Bessent again emphasized bipartisan cooperation. He argued that both the White House and Congress contain innovation-supportive lawmakers, but need to build consensus quickly to avoid regulatory vacuum causing risk spillover. The discussion shifted quickly to U.S. regulation, where Bessent voiced strong support for the proposed Clarity Act, arguing that digital asset innovation should be embedded within the U.S. economy under “safe, sound, and smart” oversight.
Potential Crypto Tax Breaks
At the hearing, Senator Cynthia Lummis raised the possibility of a de minimis Bitcoin tax exemption for small transactions and asked for clearer guidance on calculating capital gains across mixed-cost portfolios. Bessent offered to have Treasury’s tax policy office engage with her team. This initiative could significantly reduce the tax burden for ordinary users using Bitcoin for small everyday payments.
The hearing followed Bessent’s earlier testimony that the government cannot bail out Bitcoin or direct banks to hold crypto, and that seized BTC will now be retained in the Strategic Bitcoin Reserve rather than sold. This stance marks a departure from past administrations that sold off forfeited crypto assets, signaling a long-term recognition of digital assets' value.
China Factor and U.S. Regulatory Stance
During the hearing, members of Congress pressed Bessent on whether China is using blockchain and digital assets to challenge American financial leadership. Bessent responded that Treasury has not observed rumored gold-backed Chinese instruments but noted China’s activity through Hong Kong. He warned that if the U.S. does not establish a regulatory framework quickly, it could lose innovation edge in digital finance.
The discussion then shifted to domestic regulatory challenges. Bessent warned that deposit volatility from crypto-related legislation could harm community and small banks by limiting their ability to lend locally. He called for balancing financial stability with innovation when crafting rules. The Treasury will work closely with Congress to ensure the final bill protects investors without hindering technological development.