U.S. Treasury Secretary Scott Bessent told Congress that traditional banking and crypto services could become more closely aligned in the future.
Speaking before the Senate Banking Committee on Thursday, Bessent was asked by Republican Senator Cynthia Lummis whether conventional banks and crypto firms might eventually offer similar products.
“I think that can happen over time,” Bessent responded. “We’ve actually been working with small and community banks to discuss how they can be part of the digital asset revolution.”
Bessent urges crypto skeptics to relocate to El Salvador
Bessent said that progress is “impossible” without clear regulations for the crypto industry and called on the sector to support the crypto market structure bill, known as the CLARITY Act, currently under consideration in Congress.
“We have to get this CLARITY Act across the finish line, and any market participants who don’t want it should move to El Salvador.”
“We need to implement safe, sound, and smart practices under U.S. government oversight, while still preserving the freedom that crypto offers,” Bessent said. “It’s a balance that is still being worked out.”
Efforts to prevent bank deposit volatility
The crypto market structure bill has stalled in the Senate Banking Committee amid a deadlock over bipartisan negotiations. Lawmakers have sought to impose limits on stablecoin yields, which some crypto firms, including Coinbase, have resisted. Bessent emphasized that deposit volatility is “very undesirable,” as stable deposits are crucial for enabling banks to lend to their communities.
“We will continue to work to ensure there is no deposit volatility associated with this,” he said.
Reports indicate that several crypto companies have proposed concessions, including giving community banks a larger role in the stablecoin system, in an effort to advance the bill through the Senate.
