Treasury Secretary Bessent Urges Congress to Pass Clarity Act for Digital Asset Rules

U.S. Treasury Secretary Scott Bessent has called on Congress to pass the Digital Asset Market Clarity Act, arguing that bipartisan legislation is essential to cementing America’s position as the global leader in cryptocurrency regulation. The push comes as the bill, which passed the House nearly nine months ago, faces a narrowing window for Senate action before midterm election pressures take hold.

What Bessent Said and Why the Timing Matters

Bessent first championed the Clarity Act during remarks at the White House Digital Assets Report launch on July 30, 2025, stating that “bipartisan legislation like the House’s CLARITY Act will capitalize on our recent victories by providing clear rules of the road for the entire industry.”

He added that “regulatory certainty is essential to cementing our status as the crypto capital of the world,” framing the legislation as a cornerstone of the Trump administration’s broader digital asset strategy.

The rhetoric escalated sharply in February 2026, when Bessent testified before the Senate Banking Committee and called industry critics “a nihilist group in the industry who prefers no regulation over this very good regulation.” He told resistant market participants bluntly: “Any market participants who don’t want it should move to El Salvador.”

The confrontational tone signaled a shift from persuasion to pressure, directed not at skeptical lawmakers but at crypto firms that had withdrawn support for the bill.

How the Clarity Act Would Reshape U.S. Digital Asset Oversight

The legislation would establish a clear jurisdictional boundary between the two primary financial regulators. The CFTC would receive exclusive jurisdiction over digital commodity spot markets, while the SEC would maintain authority over investment contract assets.

This split addresses a longstanding ambiguity that has left crypto companies uncertain about which regulator governs their products. The lack of clear rules has driven compliance costs higher and pushed some firms to operate offshore, a dynamic that the administration’s broader push to become the crypto capital of the world through stablecoin infrastructure is designed to reverse.

For exchanges, issuers, and builders, the Act would replace the current enforcement-driven regulatory approach with codified compliance expectations. Banks and credit unions would also gain a defined path to engage with digital assets.

Senator Cynthia Lummis reinforced this point in a February 2026 post on X, stating that under the Clarity Act, “banks and credit unions have the opportunity to grow by adopting bitcoin, digital assets and distributed ledger technology.”

Source: @SenLummis on X

SEC Chair Paul Atkins echoed the urgency, describing the U.S. as “the Crypto Capital of the World” and pledging to “provide a bridge toward this landmark legislation, ensuring clarity and certainty for innovators and investors.”

Source: @SECPaulSAtkins on X

Legislative Timeline: 266 Days and Counting

The Digital Asset Market Clarity Act passed the House of Representatives on July 17, 2025, with a bipartisan vote of 294-134. The margin reflected broad cross-party support for establishing digital asset market structure rules.

House Vote on Digital Asset Market Clarity Act

294-134

Despite that momentum, the bill stalled in the Senate. The primary obstacle was a dispute over stablecoin yield provisions, with traditional banks opposing features that could compete with deposit products and crypto firms pushing for broader stablecoin functionality.

A compromise reached on March 20, 2026, by Senators Thom Tillis and Angela Alsobrooks resolved the core dispute. The agreement bans passive yield on stablecoins while allowing activity-based rewards, a distinction that could shape how stablecoin products compete with traditional financial instruments going forward.

As of April 9, 2026, it has been 266 days since the House vote, with the Senate Banking Committee markup targeted for late April after Easter recess ends on April 13.

Elapsed Legislative Timeline

266 days

Market Sentiment and Prediction Market Odds

The regulatory uncertainty has weighed on broader crypto sentiment. Bitcoin traded at $70,990, down 0.47% over 24 hours, while the Fear & Greed Index sat at 14, deep in “Extreme Fear” territory.

Prediction markets tell a more nuanced story. On Polymarket, traders price the probability of the Clarity Act being signed into law in 2026 at 63-72%, with $505,300 in trading volume on the contract. Those odds have fluctuated between 53% and 90% in recent months, reflecting shifts in Senate negotiation progress.

The gap between broad market fear and relatively high prediction market confidence suggests that informed participants view passage as likely, even as retail sentiment remains depressed by the prolonged legislative timeline.

For crypto firms navigating regulatory filings, including those pursuing new ETF products through the SEC, passage of the Clarity Act would redefine which regulator reviews their applications and under what standards.

What to Watch Next in Congress

Key Milestones Before Midterms

• Senate Banking Committee markup: Targeted for late April 2026 after Easter recess ends April 13. This is the next concrete legislative checkpoint.
• Senate floor vote timing: If the bill does not reach the Senate floor by May, the November 2026 midterm election cycle may prevent major votes as legislators shift to campaign mode.
• Stablecoin yield implementation details: The Tillis-Alsobrooks compromise framework will need precise statutory language in the Senate version, which could reopen debate.

Stakeholder Signals to Monitor

• Industry support shifts: Bessent’s “nihilist” criticism was directed at firms that withdrew backing. Whether major crypto companies re-endorse the bill will signal whether the compromise satisfied their concerns.
• Treasury and SEC coordination: Both Bessent and SEC Chair Atkins have publicly endorsed the legislation. Joint regulatory guidance ahead of passage could indicate confidence in the timeline.
• Companion legislation: The GENIUS stablecoin Act moves on a parallel track. Progress or stalls on that bill could affect Clarity Act momentum.

FAQ: Clarity Act and U.S. Digital Asset Rules

What is the Clarity Act?

The Digital Asset Market Clarity Act (H.R.3633) is a bill that would divide regulatory jurisdiction over crypto between the CFTC and SEC. The CFTC would oversee digital commodity spot markets, while the SEC would retain authority over investment contract assets. It passed the House 294-134 in July 2025 and is awaiting Senate action.

Why is Bessent urging Congress now?

The bill has been stalled in the Senate for over 266 days. With midterm elections in November 2026, the legislative window is narrowing. The stablecoin yield dispute that blocked progress was resolved in March, creating an opening for the Senate Banking Committee to advance the bill in late April.

How could the Act affect crypto firms and investors?

Firms would gain clarity on which regulator oversees their products, reducing compliance uncertainty. Banks would receive a defined framework to engage with digital assets. Investors would benefit from standardized rules that could attract more institutional participation to U.S. markets.

What happens if Congress does not pass it?

Without legislation, the current enforcement-driven regulatory approach continues, with both the CFTC and SEC asserting jurisdiction over digital assets on a case-by-case basis. The administration has warned this would undermine U.S. competitiveness, potentially pushing innovation to jurisdictions with clearer regulatory frameworks.

Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.