US Treasury Secretary Scott Bessent is once more calling for the urgent expedition of the CLARITY Act into law, warning that further delays risk loss of US prominence in global economics.
Bessent nudges fast-tracking of the CLARITY Act
Bessent compared the legislation’s development to that of Singapore and Abu Dhabi, nations that already have clear rules set for the cryptocurrency and blockchain industry. He urged the US to align with the Trump administration’s goal of making it a “crypto capital of the world.”
Additionally, the Secretary argues that the current lack of regulation is fueling volatility in the crypto market and triggering risk-averse sentiment among investors.
Bessent is now campaigning for Senate approval of the CLARITY Act in April and a presidential signing before the first half of this year. This timeline prevents the mid-term election season from further delaying the bill later this year.
In closing, Bessent criticized “recalcitrant actors” and “nihilists”, saying their preference for zero regulation is a hurdle to the nation’s development.
The bill’s previous and future progress
Since its introduction last year, the CLARITY Act has been held up due to the disagreement between stablecoin issuers and banking institutions over stablecoin yield. Banks have argued that the yield undermines their retail deposits, posing significant challenges to their financial models.
However, White House economists recently refuted these claims, saying such a ban would pose no threat to bank deposits but would hurt consumer welfare.
Currently, the bill has a 70% chase of passing the Senate before the first half of this year. Should it become law, it would define the roles of different regulatory agencies in the crypto industry. It would also underpin a “pro-innovation” stance rather than strict enforcement. Furthermore, it would unlock trillions of dollars from institutional investors, who largely remain on the sidelines due to legal obscurity.
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