The cryptocurrency market has swung sharply in recent weeks, with both Bitcoin and Ethereum trading well below the record levels they reached last year.
Key Takeaways:
- Bessent says the proposed Clarity Act could reduce uncertainty and stabilize crypto markets.
- He attributes part of Bitcoin’s recent drop to industry resistance to regulation.
- The bill faces political hurdles and opposition from some firms despite a 62% passage outlook.
However, US Treasury Secretary Scott Bessent believes a pending regulatory framework could help steady sentiment.
Speaking to CNBC on Friday, Bessent said passage of the proposed Clarity Act, a market structure bill aimed at defining oversight of digital assets, would ease uncertainty among investors.
Bessent Urges Swift Passage of Crypto Clarity Bill This Spring
“Some clarity on the Clarity bill would give great comfort to the market,” he said, adding that lawmakers should move quickly to place the legislation on the president’s desk this spring.
Bessent described part of the recent downturn as avoidable. Bitcoin has fallen more than 29% over the past month, a decline he characterized as partly driven by industry resistance to regulation.
“There is a group of Democrats who want to work with Republicans on getting a market structure bill,” he said.
“But there are a group of crypto firms who have been blocking it… that doesn’t seem to have been good for the overall crypto community.”
His latest comments were more measured than earlier criticisms directed at companies opposing the proposal.
In recent interviews, Bessent labeled dissenting firms “recalcitrant actors” and argued that participants unwilling to operate under a regulatory framework could relocate elsewhere.
US-based exchange Coinbase withdrew support over provisions restricting companies from offering yield on stablecoins to retail users.
Chief executive Brian Armstrong said at the time the firm would prefer no legislation over one it considers flawed.
Political dynamics could also shape the bill’s prospects. Bessent warned that a shift in congressional control following upcoming midterm elections might halt negotiations entirely.
He also pointed to prior regulatory pressure on the sector, saying policies during the previous administration came close to an “extinction event” for parts of the industry.
Prediction market Polymarket currently assigns roughly a 62% probability that the Clarity Act becomes law by the end of 2026.
Gold Rally, Clarity Act Uncertainty a Turning Point for Crypto
As reported, Bitwise Chief Investment Officer Matt Hougan has said that gold’s surge past $5,000 an ounce and mounting uncertainty around US crypto legislation are shaping a critical moment for digital asset markets.
Hougan said the combination of rising demand for assets outside government control and fading confidence in near-term regulatory clarity could influence both crypto adoption and price action in the months ahead.
He also flagged growing uncertainty around the Clarity Act, legislation aimed at cementing a pro-crypto regulatory framework in the US.
Political and geopolitical factors are adding further uncertainty. Internal divisions at the Fed, combined with leadership questions and rising tensions following a US naval deployment toward Iran, have pushed investors toward traditional havens.
“This flight to safety is bypassing Bitcoin entirely in favor of tangible commodities. Until the geopolitical dust settles or the Fed turns the liquidity taps back on, Bitcoin remains a high-risk play in a world looking for a bunker.
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