US Treasury Secretary Scott Bessent has urged Congress to pass the Digital Asset Market Clarity (CLARITY) Act without delay, warning that limited Senate floor time makes immediate action essential.
In a Wall Street Journal op-ed published Wednesday, Bessent emphasized that the bill is key to establishing clear regulatory guidelines for digital assets, including cryptocurrencies, tokenized assets, and decentralized exchanges. He noted that with the global crypto market reaching $3 trillion and nearly one in six Americans holding digital assets, the urgency for US leadership in financial innovation has never been greater.
“Congress must pass the Clarity Act. Senate floor time is scarce, and now is the time to act,” he wrote.
While the House of Representatives approved the CLARITY Act in July 2025, the bill has faced repeated delays in the Senate, largely due to disagreements over how stablecoin yields should be treated.
Traditional financial institutions argue that allowing yields on stablecoins could undermine bank lending, while industry supporters say such features are crucial for fostering innovation and maintaining US competitiveness.
Meanwhile, a report released Wednesday by White House economists pushed back against banking sector concerns, finding that restricting stablecoin yields would have only a minimal impact on overall bank lending.
The Council of Economic Advisers estimated that banning stablecoin yields would increase total US bank lending by just $2.1 billion—about 0.02% of the $12 trillion market—with community banks seeing only a $500 million boost. In contrast, the report found such a ban would result in an annual welfare loss of roughly $800 million due to reduced earnings for users.
President Donald Trump also criticized banks for stalling crypto legislation, arguing they are using disagreements over stablecoin yields to hold both the CLARITY Act and the GENIUS Act “hostage.”
Meanwhile, the Treasury on Wednesday proposed stricter rules under the GENIUS Act, requiring payment stablecoin issuers to implement Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) programs. The framework would also mandate sanctions compliance and grant issuers the authority to block, freeze, or reject certain transactions, effectively classifying them as financial institutions under the Bank Secrecy Act.
Industry experts say the proposal would turn stablecoin issuers into bank-like gatekeepers. Snir Levi, CEO of blockchain intelligence firm Nominis, noted that increased compliance requirements could lead to more frequent wallet freezes, transaction blocking, and large-scale asset seizures.
