Bessent urges Congress to pass crypto regulation bill

U.S. Treasury Secretary Scott Bessent called on Congress Wednesday to enact federal digital asset rules through the stalled Clarity Act, warning regulatory uncertainty chases development to international hubs like Abu Dhabi and Singapore. The Digital Asset Market Clarity Act passed the House last July by 294-134 but languishes in Senate Banking Committee nine months later. Bessent framed passage as national priority tying economic security to innovation leadership.

Legislation divides oversight between CFTC for non-security tokens and SEC for investment contracts, establishing registration paths for exchanges and custody standards. House sponsors positioned the bipartisan framework as antidote to patchwork enforcement plaguing Coinbase and Binance.US lawsuits. Senate delays stem from banking lobby resistance to decentralized finance competition threatening $29 trillion Treasury market deposits.

Bessent tied urgency to White House Digital Assets Report rollout, noting 16% American ownership and institutional products from BlackRock, Fidelity alongside blockchain's role in payments and real-world asset tokenization. Global crypto capitalization oscillated between $2-3 trillion over past year amid adoption surge.

Treasury and SEC coordination signals momentum: Chair Atkins endorsed Clarity alongside Bessent during FSOC hearing. Stablecoin provisions mandate dollar and short-term Treasury bill backing with monthly reserve disclosures, potentially channeling $2 trillion market into T-bills by 2028 per Standard Chartered.

Clarity Act cleared procedural hurdles after February Senate Banking referral, narrowing path to floor vote before midterm distractions. Bessent stressed time sensitivity with "economic security is national security" framing.

Banks argue decentralized models erode deposit bases funding lending while crypto leaders demand CFTC primacy for commodity-like assets. Bipartisan support held through House despite 2025 volatility episodes.

Enactment cements U.S. dominance over EU's MiCA and Asia-Pacific frameworks, unlocking enterprise blockchain scaling across supply chains and capital markets.