U.S. Treasury Secretary Calls for Swift Passage of Crypto CLARITY Act

U.S. Treasury Secretary Scott Bessent called on Congress Wednesday to pass long-stalled legislation that would bring much-needed regulatory certainty to the cryptocurrency industry. He warned that continued delays risk ceding American leadership in digital finance to overseas rivals.

In an opinion piece published in The Wall Street Journal, Bessent argued that the United States has historically dominated global markets through clear rules and adaptability to new technology. But without swift action on the Digital Asset Market Clarity Act—commonly known as the Clarity Act—the country could lose ground as crypto developers and exchanges flock to friendlier jurisdictions like Abu Dhabi and Singapore. 

“The U.S. has long shaped financial markets. Clear rules, credible enforcement and a willingness to adapt to innovation have made the American approach to market regulation the world standard. But maintenance of this leadership is far from guaranteed,” Bessent wrote.

He added that Congress must pass the Clarity Act to preserve it and rise to the challenge before us. “Senate floor time is scarce, and now is the time to act,” the Treasury Secretary emphasized. 

Building on stablecoin progress

The legislation would build on the Genius Act, which President Donald Trump signed last year to create a federal framework for dollar-backed stablecoins. That measure has helped anchor stablecoin activity to the U.S. dollar and modernize payment systems. 

Bessent said the Clarity Act would extend that progress by clearly dividing oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

It would also establish registration pathways for trading platforms, define when a digital asset qualifies as a security, strengthen investor protections through disclosure and custody requirements, and shield software developers from undue legal risks. Additional provisions aim to bolster defenses against money laundering and illicit finance. 

The crypto sector’s global market capitalization has stabilized between $2 trillion and $3 trillion, with roughly one in six Americans holding some form of digital asset. Major institutions have increasingly sought exposure, while blockchain technology expands into tokenized real-world assets and faster settlements. 

Risks of regulatory uncertainty

Yet regulatory ambiguity has persisted. Past enforcement actions by the SEC and CFTC created overlapping and sometimes conflicting demands, driving innovation offshore and threatening U.S. economic and national security interests, according to Bessent.

“Economic security equals national security,” he wrote, urging lawmakers to ensure the next wave of digital finance develops “on American rails,” backed by U.S. institutions and denominated in dollars. 

Bessent stressed that the Genius Act demonstrated Congress can deliver meaningful progress when it acts decisively. The Clarity Act represents the logical next step, providing the comprehensive market structure rules the industry has sought for years.

Without it, the U.S. risks watching the future of finance—including decentralized exchanges, tokenized securities, and new methods of capital formation—take shape in foreign capitals rather than on American soil. Developers and firms, frustrated by years of regulatory gray areas and enforcement-first approaches, have already begun shifting operations abroad in search of predictability. 

The push comes as Congress faces a tight legislative calendar. Industry advocates have lobbied for years for comprehensive market structure rules, viewing the Clarity Act as essential to unlocking domestic growth in decentralized finance and tokenized assets.

Bessent’s intervention underscores the Trump administration’s pro-crypto stance, positioning regulatory clarity as a competitive necessity rather than burdensome oversight. 

Also read: US Treasury Proposes New Stablecoin Rules Under GENIUS Act