U.S. Treasury Secretary Scott Bessent has again called on Congress to move forward with the CLARITY Act, saying the lack of clear crypto rules is still a serious problem in the United States.
Digital asset companies are still operating without clear ground rules, Bessent said in an opinion piece published on the Wall Street Journal on Wednesday.
Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have not been fully aligned, leaving many firms unsure about which rules they are supposed to follow, Bessent noted.
He shared his observation saying that the lack of clarity has already pushed some crypto companies and developers to set up in places like Singapore and Abu Dhabi, where the rules are easier to understand.
“A growing share of crypto development relocated to places with clear rules, such as Abu Dhabi and Singapore. Abroad, firms knew when and how to register, what standards to meet, and how to operate. The benefits of domiciling in the U.S. rarely outweighed the risks,” Bessent stated.
Bessent said the GENIUS Act, introduced last year, was a step in the right direction because it set out a framework for dollar-backed stablecoins. Even so, he argued that rules for the wider digital asset market are still unclear.
What the CLARITY Act means for crypto
The CLARITY Act would put in place the first broad federal rulebook for digital assets in the United States. Until now, crypto companies have had to deal with a confusing mix of state laws and overlapping federal oversight.
The bill is designed to bring more clarity to the market by defining which regulators oversee different areas and by setting basic rules for registration, consumer protection, and market conduct.
Supporters say the bill could make life much easier for crypto companies. The clear framework rules would assist them in launching products, expanding their teams, and working in the U.S fearlessly.
The House of Representatives passed its version of the crypto market structure bill last July and is now awaiting Senate approval.
Stablecoins are still one of the main points of disagreement. Banks and crypto companies remain split over how yield, interest, and rewards should be handled.
On Wednesday, White House economists pushed back on claims from banking groups that stablecoin yields pose a major threat to traditional lending. Their report said banning yields on stablecoins would do little to change bank lending activity.
Bessent says timing now matters
Bessent’s latest message was not just about crypto policy. He was also pushing for quick action. He said Senate floor time is tight and urged Congress to act now rather than delay the bill.
He also highlighted how big the industry has become. According to him, the global crypto market is now worth around $3 trillion, while nearly one in six Americans hold digital assets.
“To preserve it and rise to the challenge before us, Congress must pass the Clarity Act. Senate floor time is scarce, and now is the time to act,” Scott Bessent wrote.
Big banks and other financial firms are already rolling out crypto-related products or trying to get them approved.
At the same time, blockchain technology is being used more in payments, settlements, and the tracking of real-world assets. Bessent’s point is that if the U.S. waits too long to put clear rules in place, it could fall behind in an industry that is moving quickly.
Bessent said the bill would spell out when a digital asset should be treated as a security and create a proper registration system for trading platforms and other firms operating in the market.
He also said the legislation would help fix broader market structure issues by adding disclosure and custody requirements to better protect investors. Along with that, it would include anti-money laundering rules and give authorities stronger tools to deal with illicit finance.
Bessent’s public support gives extra force to calls for action on the bill. He said in February that the measure would bring “great comfort to the market” during periods of high volatility.
As support grows on both sides, supporters now believe that momentum will be enough to move the bill forward before this legislative window closes.
Still, not everyone in the industry is convinced. Cardano founder Charles Hoskinson recently said the CLARITY Act could make life tougher for smaller and early-stage crypto projects in the United States instead of giving them relief.