Economy April 9, 2026 12:35 AM

Treasury Secretary Presses Congress to Approve Clarity Act to Set Federal Crypto Rules

Scott Bessent urges lawmakers to resolve impasse over stablecoin provisions to keep crypto development anchored in the U.S.

By Priya Menon
Treasury Secretary Presses Congress to Approve Clarity Act to Set Federal Crypto Rules

U.S. Treasury Secretary Scott Bessent urged Congress to enact the Clarity Act to establish a federal regulatory framework for digital assets. In a Wall Street Journal op-ed, Bessent warned that unclear rules have driven crypto activity to jurisdictions with clearer regimes, and he called on lawmakers to overcome disagreements - notably between banks and crypto firms over stablecoin interest - that have stalled progress.

Key Points

  • Treasury Secretary Scott Bessent publicly urged Congress to pass the Clarity Act to establish federal rules for digital assets, arguing legal clarity is needed to retain crypto activity in the U.S.
  • Bessent said ambiguous regulation has led some crypto development to relocate to jurisdictions with clearer rules, such as Abu Dhabi and Singapore.
  • Progress on the market structure bill has been delayed by a months-long clash between banks and crypto firms over whether interest and other rewards on stablecoins should be prohibited; the House passed its version in July.

U.S. Treasury Secretary Scott Bessent reiterated the need for Congress to pass legislation that would create federal rules for digital assets, saying a clear regulatory framework is necessary to keep cryptocurrency development and investment anchored in the United States.

In an op-ed published in the Wall Street Journal on Wednesday, Bessent called for passage of the market-structure bill known as the Clarity Act. He framed the measure as a way to remove uncertainty that has, in his view, pushed some crypto activity overseas.

"The regulatory framework for digital asset markets is unclear," Bessent wrote, adding that the lack of clarity produced "predictable consequences."

Bessent pointed specifically to a relocation of activity to other jurisdictions, writing that "A growing share of crypto development relocated to places with clear rules, such as Abu Dhabi and Singapore. Abroad, firms knew when and how to register, what standards to meet, and how to operate. The benefits of domiciling in the U.S. rarely outweighed the risks," he said.

The Clarity Act is designed to lay down federal rules for digital assets and is presented in the op-ed as the culmination of years of lobbying by the crypto industry. Supporters argue that existing regulatory tools are insufficiently tailored to digital assets and that statutory clarity is needed to give companies legal certainty to operate in the U.S.

Despite support from parts of the industry and lawmakers, the proposed crypto market structure legislation has been stalled for months by a dispute between banking interests and the cryptocurrency sector. The sticking point centers on how the bill would treat interest and other rewards paid on stablecoins. Banking groups have lobbied for language that would prohibit paying interest or similar rewards on stablecoins, while crypto firms have pushed back.

Legislative progress has been uneven. The House of Representatives approved its version of the bill in July, but a final, unified measure has not yet reached passage.

Earlier this year in February, Bessent said the legislation would provide "great comfort to the market" during a period of substantial volatility. He also noted that some cryptocurrency firms had sought to block the bill, even as a bipartisan group of lawmakers was working to advance it.


While the Clarity Act remains under negotiation, Bessent's public appeal underscores the Treasury's view that formal federal rules are needed to prevent further relocation of crypto activity and to resolve ongoing disputes over the treatment of stablecoin-related rewards.

Risks

  • Continued regulatory uncertainty could prompt further migration of crypto development and investment to foreign jurisdictions with clearer rules - affecting the U.S. crypto sector and related capital markets.
  • A legislative impasse driven by disagreement over stablecoin interest and rewards could delay enactment of the Clarity Act, maintaining current legal ambiguity for market participants and service providers.
  • Opposition from cryptocurrency firms attempting to block the bill, alongside lobbying from banks seeking prohibitions on stablecoin rewards, creates political uncertainty that could affect firms, banks, and market stability.

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