Treasury Secretary Scott Bessent is calling on Congress to pass the CLARITY Act, a bill that would set a federal regulatory framework for digital assets and end years of legal ambiguity. Speaking on the push, Bessent argued the legislation would bring crypto activity back to the United States instead of leaving it in what he called the 'wild, wild west' of offshore markets. The bill has already cleared key Senate committees, but still faces a full floor vote and reconciliation before it can reach the President's desk.
Why the CLARITY Act is needed
Bessent said the current lack of clear rules offshore has fueled confusion and controversy over digital assets. He described the offshore environment as lawless, and stressed that the CLARITY Act would give the industry a predictable legal home in the US. The bill aims to clarify how digital assets are classified—whether as securities, commodities, or something else—a question that has dogged regulators and companies alike.
The legislation wouldn’t just bring clarity, Bessent argued; it would also stem the flow of crypto firms and innovation moving abroad. Without a domestic framework, he said, the country risks losing the economic upside of the technology.
Progress in the Senate
The CLARITY Act has advanced in two Senate committees. The Senate Banking Committee approved its portion of the bill, building on progress from January when the Agriculture Committee voted on its version. That dual-track approach reflects the jurisdictional split over digital assets between banking and commodities regulators.
But the bill still has a long way to go. It must pass a full Senate vote, then complete legislative reconciliation steps, and finally secure a House-Senate agreement before heading to the President. No timeline has been set for the next votes.
Bessent’s stance on CBDC
Separately, Bessent made clear the US will not adopt a Central Bank Digital Currency, or CBDC. He called a digital dollar 'the first step toward tracking' consumer transactions and said it is off the table. That position aligns with earlier Republican opposition to a CBDC, but it also signals a deliberate policy choice: the government will regulate digital assets, but won’t create its own.
The statement could reassure privacy advocates and the crypto industry, which has long worried about government surveillance of digital payments. At the same time, it leaves the US without a sovereign digital currency while other central banks, including China’s, continue to develop their own.
The next test for the CLARITY Act will come when Senate leadership schedules a floor vote. Until then, the offshore 'wild west' Bessent described remains open for business.
