Bessent Urges Passage of CLARITY Act for Crypto Rules

US Treasury Secretary Scott Bessent urged lawmakers on Thursday to pass the CLARITY Act, a key piece of legislation aimed at establishing federal rules for digital assets, as Senate negotiations remain stalled over restrictions on stablecoin yields. Testifying before the Senate Banking Committee in Washington, Bessent emphasized the need for regulatory clarity to foster innovation while safeguarding traditional banking stability, amid growing tensions between crypto firms and community banks.

Bessent highlighted the potential for traditional banks and cryptocurrency services to converge in the future, noting ongoing discussions with small and community banks to integrate them into digital asset activities. "I think that can happen over time," he said in response to a question from Senator Cynthia Lummis of Wyoming. "We've actually been working with small and community banks to discuss how they can be part of the digital asset revolution." He stressed that clear rules are essential to balance oversight with the freedom inherent in crypto, warning that without the CLARITY Act, the sector risks instability. "We have to get this CLARITY Act across the finish line," Bessent added,...