U.S. Treasury Secretary Scott Bessent told CNBC on Friday that Congress should move quickly to approve federal legislation establishing rules for digital assets and forward it to President Donald Trump for enactment this spring. Bessent identified the measure by name as the Clarity Act and framed its passage as an urgent priority given recent turbulence in the crypto sector.
Asked about the bill's status in the context of a recent sell-off in cryptocurrencies, Bessent said the Clarity Act would provide "great comfort to the market" at a time of heightened volatility. His remarks emphasized the administration's view that a clear federal framework could offer reassurance to investors and participants in the digital asset ecosystem.
According to Bessent, the legislative push faces resistance from industry participants. He said cryptocurrency firms have tried to block the Clarity Act, even as a bipartisan group of lawmakers seeks to shepherd the bill through Congress. That mix of opposition and cross-party support, he suggested, creates a narrow window for action.
Bessent also warned of political risk tied to the composition of the House of Representatives. He noted that the existing bipartisan coalition working to pass the Clarity Act could collapse if Democrats win control of the House in November. His comment underlined the connection between midterm political outcomes and the bill's odds of advancing this spring.
The Treasury secretary's remarks linked three elements that he said bear on the legislation's prospects: active market volatility in digital assets, efforts by some crypto firms to oppose the bill, and the fragility of bipartisan congressional support. Taken together, Bessent framed immediate congressional action as the pathway to providing regulatory clarity before political dynamics potentially shift later in the year.
Summary: Treasury Secretary Scott Bessent urged passage of the Clarity Act this spring to give markets comfort during recent crypto volatility, said industry players have tried to block the bill, and warned the bipartisan effort could unravel if Democrats take the House in November.
Key points:
- Scott Bessent called for Congress to pass the Clarity Act this spring and send it to President Donald Trump for signature.
- Bessent said the bill would give "great comfort to the market" amid a recent sell-off in digital assets.
- He reported that cryptocurrency firms have attempted to block the legislation, while a bipartisan group of lawmakers is pushing it; that coalition could collapse if Democrats win the House in November.
Sectors impacted: digital assets markets, financial regulation, legislative and political sectors.
Risks and uncertainties:
- Political risk - The bipartisan coalition supporting the bill may disintegrate if control of the House changes in November, which could halt legislative progress.
- Industry opposition - Cryptocurrency firms have tried to block the Clarity Act, creating headwinds for passage.
- Market volatility - Ongoing sell-offs in the crypto sector frame urgency but also create uncertainty about market response to proposed rules.