Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
U.S. Treasury’s Bessent criticizes cryptocurrency ‘nihilists’ opposing market framework legislation.
Treasury Secretary Bessent stated that market participants opposed to stringent regulation should "relocate to El Salvador."
Secretary of the Treasury Scott Bessent criticized crypto insiders during discussions on the bill. (Kevin Dietsch/Getty Images)
What to know:
- In some notably strong remarks, U.S. Treasury Secretary Scott Bessent condemned crypto insiders obstructing the legislative advancements for the anticipated Digital Asset Market Clarity Act.
- Bessent testified before the Senate Banking Committee that certain industry members appear to desire no regulation whatsoever.
Related Posts
U.S. Treasury Secretary Scott Bessent issued a warning to crypto insiders who are resisting negotiations regarding a digital assets market structure bill in the Senate, briefly aligning with Democratic Senator Mark Warner to express frustration during a hearing on Thursday.
"There seems to be a nihilist faction in the industry that prefers no regulation over this very beneficial regulation," Bessent stated in his testimony before the Senate Banking Committee.
STORY CONTINUES BELOWDon’t miss another story.Subscribe to the State of Crypto Newsletter today. See all newslettersSign me up
"Amen, brother," remarked Virginia Senator Warner, a key Democratic negotiator on the bill. "So weigh in."
"I do," Bessent replied. "Early and often."
Several participants from the crypto industry, including Coinbase CEO Brian Armstrong, have voiced concerns regarding provisions in the bill, particularly about how it addresses decentralized finance regulation, stablecoin yield rewards, and the classification of tokens as securities. Armstrong’s withdrawal of support for a version of the legislation under discussion in the Senate Banking Committee last month had significant implications.
Warner mentioned during the hearing that another meeting is anticipated regarding the regulatory initiative within the next few days, suggesting that Bessent would be invited. In these ongoing discussions, Warner has been vocal about crypto’s illicit finance issues, leading much of that dialogue in the legislative negotiations.
"I feel like I’m in crypto hell," Warner commented, provoking some laughter in the hearing room. "We are working our tail off."
He noted that other technical aspects of the bill could be resolved, but indicated that addressing "some of the gaps" related to national security and decentralized finance (DeFi) remains a priority.
"We will address yields and rewards; we will tackle a range of other concerns; but these national security issues surrounding DeFi are substantial, and we must not create a set of rules that leaves significant loopholes and, frankly, diminishes some of the prosecutorial powers currently in place," Warner stated.
Bessent, while not naming any resistant crypto industry representatives, emphasized the necessity of passing the Digital Asset Market Clarity Act in the Senate. The bill has faced challenges in maintaining momentum as lobbyists from the crypto and banking sectors have clashed over stablecoin yield issues, and lawmakers from both parties have struggled to reach consensus on various provisions. The Treasury Secretary contended that the industry cannot progress in the U.S. unless the bill is enacted.
"It’s impossible to move forward without it," he asserted. "We must get this Clarity Act across the finish line. Any market participants opposed to it should relocate to El Salvador."
Bessent expressed that he believes the earlier GENIUS Act, which aimed to regulate U.S. stablecoin issuers, achieved a reasonable equilibrium that could ultimately be reflected in the Clarity Act.
"There appear to be individuals who wish to reside in the U.S. but do not want regulations for this crucial industry, and we need to ensure safe, sound, and prudent practices along with government oversight, while also permitting the freedom that crypto offers," Bessent remarked, adding that as both parties continue to collaborate on the Clarity Act, it can be completed "this year."
Read More: Crypto’s U.S. Policy Aims May Pivot on Resistance from Democratic Senator Warner
