Treasury Secretary Scott Bessent says recent crypto market volatility underscores the need for swift regulatory clarity, while taking aim at Coinbase Global (NASDAQ:COIN) for opposing the proposed Clarity Act.
Bessent Presses For Market Structure Bill
In a Fox Business interview, Bessent argued that the latest turbulence in crypto markets has made clear rules more urgent than ever.
He said the Clarity Act is expected to return for markup soon, despite resistance from a small group of lawmakers who would rather see no bill than a compromised one.
Bessent noted that both banks and most crypto firms oppose that approach.
He expressed confidence the legislation will pass this spring, citing bipartisan support, and reiterated that under President Donald Trump, the U.S. aims to become the global "crypto capital" with firm but predictable regulation.
Without naming the company directly at first, Bessent criticized Coinbase for opposing the bill, later referring to such firms as "recalcitrant actors" who believe no legislation is preferable to the current proposal.
White House Seeks To Ease Bank–Crypto Tensions
The White House is scheduled to hold a second meeting on Feb. 10 to address friction between banks and crypto companies, particularly around whether stablecoin issuers should be allowed to pay yield.
The discussion is part of ongoing negotiations tied to the Clarity Act.
The meeting will include senior policy officials and industry representatives, though not CEOs.
Major banks such as Bank of America, JPMorgan Chase and Wells Fargo are expected to attend, alongside crypto representatives including Coinbase Chief Legal Officer Paul Grewal.
Trader MartyParty noted that crypto firms are pushing for flexibility to offer yield on stablecoins, while banks argue this resembles deposit-taking, poses systemic risk and creates regulatory imbalance.
The dispute highlights intensifying competition between traditional finance and the crypto sector.
The Federal Reserve is currently reviewing public comments and is expected to begin formal rulemaking later this year, with potential regulations targeted for the fourth quarter.
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