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The cryptocurrency market has experienced significant fluctuations in recent weeks, with both Bitcoin and Ethereum trading considerably below the peak values they achieved last year.
Key Takeaways:
- Bessent indicates that the proposed Clarity Act could alleviate uncertainty and stabilize cryptocurrency markets.
- He links part of Bitcoin’s recent decline to the industry’s resistance to regulation.
- The bill encounters political challenges and opposition from certain companies despite a 62% likelihood of passage.
Nonetheless, US Treasury Secretary Scott Bessent believes that an upcoming regulatory framework could help stabilize market sentiment.
In an interview with CNBC on Friday, Bessent stated that the approval of the proposed Clarity Act, a bill focused on defining the oversight of digital assets, would reduce uncertainty for investors.
Bessent Advocates for Quick Passage of Crypto Clarity Bill This Spring
“Some clarity regarding the Clarity bill would provide significant reassurance to the market,” he remarked, urging lawmakers to act swiftly to present the legislation to the president this spring.
Bessent characterized part of the recent decline as preventable. Bitcoin has dropped over 29% in the past month, a decrease he attributed in part to industry resistance to regulation.
“There is a faction of Democrats willing to collaborate with Republicans on advancing a market structure bill,” he noted.
“However, there are certain crypto firms that have been obstructing it… which does not appear to benefit the broader crypto community.”
His recent remarks were more tempered compared to earlier criticisms aimed at companies opposing the proposal.
In previous interviews, Bessent referred to dissenting firms as “recalcitrant actors” and contended that participants unwilling to function within a regulatory framework might relocate elsewhere.
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Thank you to @SenLummis for your ongoing efforts in the Senate to promote essential market structure legislation for digital assets.
As I mentioned during my testimony, it is crucial that the CLARITY Act is enacted.
The digital asset revolution is underway, and I am confident… pic.twitter.com/XJQabS9wBZ— Treasury Secretary Scott Bessent (@SecScottBessent) February 6, 2026
Coinbase, a US-based exchange, retracted its support due to provisions that limit companies from providing yield on stablecoins to retail customers.
CEO Brian Armstrong stated at that time that the company would prefer no legislation over one it deems flawed.
Political dynamics could also influence the bill’s future. Bessent cautioned that a change in congressional control after the upcoming midterm elections could completely halt negotiations.
He also referenced previous regulatory pressures on the sector, noting that policies from the prior administration nearly led to an “extinction event” for certain parts of the industry.
The prediction market Polymarket currently estimates approximately a 62% chance that the Clarity Act will be enacted by the end of 2026.
Gold Rally, Clarity Act Uncertainty a Turning Point for Crypto
As reported, Bitwise Chief Investment Officer Matt Hougan has stated that gold’s rise past $5,000 an ounce and increasing uncertainty surrounding US crypto legislation are creating a pivotal moment for digital asset markets.
Hougan mentioned that the combination of heightened demand for assets outside government control and diminishing confidence in immediate regulatory clarity could impact both crypto adoption and price movements in the coming months.
He also highlighted the growing uncertainty regarding the Clarity Act, legislation intended to establish a pro-crypto regulatory framework in the US.
Political and geopolitical factors are contributing to further uncertainty. Internal divisions at the Fed, along with leadership questions and escalating tensions following a US naval deployment toward Iran, have driven investors toward traditional safe havens.
“This flight to safety is bypassing Bitcoin entirely in favor of tangible commodities. Until the geopolitical situation stabilizes or the Fed resumes liquidity support, Bitcoin remains a high-risk investment in a world seeking refuge.
The post Treasury’s Bessent Says Crypto Clarity Act Could Calm Markets appeared first on Cryptonews.
