Clarity Act stalled: Bessent urges Senate markup, targets stablecoin yield debate

U.S. Treasury Secretary Scott Bessent urged the Senate to advance the Digital Asset Market Clarity Act (Clarity Act) to markup before the legislative calendar tightens ahead of the midterms. In a Wall Street Journal op-ed and Senate Banking testimony, he said some crypto executives who oppose the Clarity Act are effectively choosing “no regulation,” calling them “nihilists.” Bessent pointed to the GENIUS Act—signed into law last year to regulate dollar-backed stablecoins—as proof Congress can still move on crypto policy. The Clarity Act is stalled in the Senate for two main reasons. First, stablecoin yield rules are splitting markets: banks fear allowing passive yield could drive deposit flight, while a bipartisan Tillis–Alsobrooks proposal would ban passive yield but permit activity-based rewards and still needs broader support. Second, some pro-crypto Senate Democrats reportedly require a ban on Trump-linked personal crypto ventures as a condition to support the Clarity Act, but the White House has rejected that demand. Bessent warned that delays could push key regulatory momentum into the November midterm cycle and encourage further development to jurisdictions with clearer rules, such as Abu Dhabi and Singapore. For traders, the key near-term signal is Senate Banking Committee momentum toward a Clarity Act markup and vote. Progress could lift risk appetite for crypto equities and major tokens, while continued delays keep volatility elevated around stablecoin-policy headlines.