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U.S. Treasury Secretary Scott Bessent called on Congress Friday to pass the Clarity Act this spring, warning that the window for bipartisan crypto legislation could close entirely if Democrats retake the House in November’s elections.
Speaking on CNBC amid a recent market sell-off, Bessent said the measure formally known as the Clarity Act would help restore investor confidence during a period of heightened volatility.
The push for the Crypto regulation bill comes at a pivotal moment for the digital asset sector, which has faced price swings and regulatory uncertainty. Bessent emphasized that codifying federal standards would bring stability to markets and reduce ambiguity surrounding oversight.
The proposed Crypto regulation bill, known as the Clarity Act, seeks to establish a comprehensive federal framework for digital assets in the United States. Lawmakers have debated the scope of regulatory authority between agencies and the need to create clear rules governing issuance, trading, and compliance requirements for cryptocurrency firms.
Asked about the bill’s status during a CNBC interview, Bessent said it would provide reassurance to investors and businesses navigating a turbulent market environment.
“It would give great comfort to the market,” — Scott Bessent, U.S. Treasury Secretary, speaking on CNBC.
According to Bessent, the Crypto regulation bill is particularly urgent given recent price declines across the digital asset sector. Market participants have long argued that regulatory fragmentation between federal agencies has contributed to uncertainty, dampening institutional participation.
The Treasury Department’s endorsement signals executive branch support for the measure, increasing pressure on lawmakers to act before the spring legislative window closes.
Bessent said there is bipartisan backing for the Crypto regulation bill, with lawmakers from both parties seeking to bring clarity to the evolving sector. However, he warned that the political calculus could shift after November’s congressional elections.
“There is a bipartisan group of lawmakers who want to get it passed,” — Scott Bessent, U.S. Treasury Secretary.
He added that this coalition could collapse if Democrats take control of the House of Representatives in November, potentially stalling or reshaping the Crypto regulation bill. The timeline, therefore, is critical. Supporters aim to move the legislation through Congress and onto President Trump’s desk before the political balance changes.
The legislative effort also faces opposition from segments of the crypto industry. Bessent noted that some cryptocurrency firms have attempted to block the Crypto regulation bill, though he did not specify which companies or industry groups were involved.
While proponents argue that the Crypto regulation bill would establish predictable rules, critics within the industry have raised concerns about compliance burdens and potential constraints on innovation. Some firms have reportedly lobbied against aspects of the bill, fearing stricter oversight or limitations on certain business models.
Bessent acknowledged this resistance but maintained that clear federal standards are necessary for long-term growth. By consolidating oversight and defining regulatory responsibilities, the Crypto regulation bill aims to reduce confusion that has, in the past, resulted in enforcement disputes and court battles.
The secretary’s comments come amid a broader market downturn in digital assets, intensifying calls for stability. He suggested that passage of the Crypto regulation bill could help steady investor sentiment and encourage institutional participation by clarifying legal obligations.
Bessent made clear that the administration hopes to see the Crypto regulation bill finalized and delivered to President Trump for signature this spring. The White House has indicated openness to establishing clearer federal rules, aligning with Treasury’s position.
The coming weeks will be decisive as congressional committees deliberate on the measure’s final language. Supporters argue that swift passage would reduce regulatory fragmentation and provide a framework for oversight that balances innovation with investor protection.
