U.S. Treasury Secretary Scott Bessent on Friday urged Congress to swiftly pass legislation establishing clear federal rules for digital assets, aiming to have a bill signed by President Donald Trump this spring. The call for action comes amid heightened volatility in the cryptocurrency market and follows a recent sell-off, prompting concerns about market stability.
Speaking on CNBC, Bessent emphasized the need for a defined regulatory framework, stating that the proposed “Clarity Act” would provide “great comfort to the market.” He acknowledged that some cryptocurrency firms have attempted to obstruct the legislation, but highlighted the continued bipartisan support for its advancement. However, Bessent cautioned that this momentum could be jeopardized if Democrats were to regain control of the House of Representatives in November’s elections.
This push for legislation follows a similar appeal made last week, where Bessent warned that the U.S. Must establish clear market structure rules before the spring legislative window closes, according to a statement to Fox News. He underscored that recent market fluctuations in Bitcoin and other digital assets demonstrate the urgency of legal certainty.
The legislative effort has seen recent progress, with a potential obstacle removed late January when Senator Marshall withdrew an amendment targeting credit card fees associated with the bill, according to reports. This followed the unveiling of draft legislation on January 13th by U.S. Senators aiming to define cryptocurrency market rules.
Simultaneously, Congress is also considering broader market structure legislation. In December, Senate Banking Committee Chair Tim Scott (R-SC) convened meetings with cryptocurrency industry participants and trade associations to discuss policy priorities, with a markup session planned for early this year. These discussions have revealed diverging viewpoints between banks and crypto firms, particularly regarding whether crypto exchanges should be allowed to offer yield to stablecoin holders through rewards programs.
Further developments include the Senate’s confirmation of Michael Selig as Chair of the CFTC and Travis Hill as permanent Chair of the FDIC. The FDIC also approved application procedures for FDIC-supervised institutions seeking to issue payment stablecoins under the GENIUS Act, and approved the deposit insurance application of a crypto-friendly bank. The Treasury Department’s Financial Stability Oversight Council recently removed crypto assets from its list of potential threats to U.S. Financial stability.
Senator Cynthia Lummis (R-WY), a prominent advocate for cryptocurrency, announced her retirement from Congress, potentially impacting the bill’s future trajectory. The administration continues to signal its support for a regulatory framework, but the timeline for passage remains contingent on maintaining bipartisan cooperation and navigating potential political shifts in the House.
