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Treasury Secretary Scott Bessent is turning up the heat on Congress, arguing that passing the CLARITY Act is essential for the United States to maintain its edge in the global technology race. The message is straightforward: get this done or watch crypto innovation keep moving to Singapore, Abu Dhabi, and anywhere else that already has clear rules.
Bessent has characterized the legislation as sitting at the “1-yard line,” a metaphor he applied in July 2026. The bill passed the House back in July 2025 and cleared the Senate Banking Committee with a 15-9 vote in spring 2026, yet a full Senate vote remains elusive heading into September 2026.
What the CLARITY Act actually does
The legislation would create a federal regulatory framework for digital assets by dividing oversight responsibilities between two agencies. The SEC would handle tokens that look and act like securities, while the CFTC would oversee those that function more like commodities.
Beyond the jurisdictional split, the bill sets disclosure requirements for digital asset platforms, establishes anti-money laundering standards, and creates pathways for companies to register with regulators.
Bessent has tied the legislation to broader administration priorities around consumer protection and national security, arguing that unregulated offshore activity poses risks that a clear domestic framework could mitigate.
Why it’s stuck in the Senate
The CLARITY Act needs 60 votes to clear a Senate filibuster, which means it requires meaningful bipartisan support.
Stablecoin yield is one of the bigger sticking points. The question of whether stablecoin issuers should be allowed to pass interest or yield to holders touches on banking regulation, monetary policy, and the definition of what a stablecoin even is in the first place.
Ethics provisions have also generated friction. Some senators want stricter rules around conflicts of interest for government officials who hold digital assets.
Then there’s the debate over how to treat software developers. Parts of the bill would impose compliance obligations on entities that build and maintain decentralized protocols, which critics argue could effectively regulate open-source code.
The crypto industry has responded to the legislative stall by spending aggressively on lobbying and advocacy.
The competitive pressure argument
Bessent has argued that unclear US rules have already driven development and economic activity offshore, with entrepreneurs choosing jurisdictions that offer defined regulatory frameworks. Countries like Singapore and the UAE have actively courted digital asset companies with tailored licensing regimes.
Market reaction and outlook
Markets have generally responded positively to Bessent’s public advocacy for the bill. Bitcoin prices and shares of publicly traded crypto companies like Coinbase have shown upward movement coinciding with his statements.
Prediction markets currently put the probability of the CLARITY Act being enacted this year at roughly 16%.
Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.
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