US Treasury Pushes Spring Passage of CLARITY Act to Curb Crypto Volatility
US Treasury Secretary Scott Bessent urged Congress to pass the CLARITY Act this spring to reduce market uncertainty after recent Bitcoin and crypto volatility. Speaking to CNBC, Bessent said some volatility was “self-induced” by industry reactions and stressed urgency to move the stalled market-structure bill to President Trump’s desk before the spring legislative window closes. The CLARITY Act—intended to clarify SEC vs. CFTC jurisdiction, add developer protections and set market-structure rules—has split lawmakers: the Senate Banking Committee’s draft, which includes stablecoin provisions, was paused for revisions after criticism and opposition from some firms (notably Coinbase, which withdrew support over limits on stablecoin yield). A bipartisan effort is working to reconcile the Banking Committee text with the Senate Agriculture Committee’s CFTC-focused half; Patrick Witt of the President’s Council of Advisors for Digital Assets said negotiators aim to preserve key jurisdictional and market-structure provisions. Bessent warned a shift in House control after midterms could complicate passage. For traders: the push from the Treasury signals senior-level momentum for regulatory clarity—passage would likely reduce uncertainty-driven volatility in BTC and crypto markets, while delays, high-profile opposition, or a fracturing of the bipartisan deal could prolong bearish sentiment. Current price context cited BTC near $68,258 (TradingView).
Bullish
Passage of the CLARITY Act would reduce legal and regulatory uncertainty by clarifying SEC vs. CFTC jurisdiction, codifying market-structure rules and offering developer protections—factors that generally reduce risk premia and volatility for crypto assets. Treasury-level pressure increases the probability of a deal in the near term, which traders typically interpret as bullish for BTC: regulatory clarity often unlocks institutional participation and narrows bid-ask spreads. Short-term, however, the article notes industry opposition (notably Coinbase over stablecoin yield limits) and a paused Banking Committee draft; these create event risk that can sustain volatility or produce downside moves if negotiations fail or the bill is weakened. Political risks—possible House control shifts after midterms—could delay or derail the bill, which would keep uncertainty elevated and weigh on prices. Net effect: if the bill advances and retains key clarity provisions, expect reduced uncertainty and a bullish influence on BTC; if it stalls or faces significant dilution, expect neutral-to-bearish price pressure in the short term while uncertainty persists.