Will the U.S. Clarity Act Pass This Spring? Will It Be the Key to Market Relief?

▲ Federal Reserve (Fed), U.S. Treasury, Bitcoin (BTC) / ChatGPT-generated image ©

The U.S. Treasury Secretary has publicly urged the swift passage of the “U.S. Crypto Market Structure Bill,” known as the CLARITY Act, as a solution to calm volatility in the cryptocurrency market, reigniting debate in Washington.

According to cryptocurrency media outlet Bitcoinist on February 14 (local time), U.S. Treasury Secretary Scott Bessent said in an interview with CNBC that the long-stalled CLARITY Act should be passed during the spring session and placed on President Donald Trump’s desk. He noted that part of the recent market volatility had a “self-inflicted” aspect stemming from the industry’s reaction to the bill, adding that efforts by some digital asset firms to block its passage have not benefited the broader crypto community.

The CLARITY Act has been in a near month-long stalemate since the Senate Banking Committee released its draft. In particular, it has faced strong criticism from industry leaders over key regulatory provisions concerning stablecoin issuers. Secretary Bessent said that if passed, the bill could provide “significant relief” to the market, adding that there are Democratic lawmakers willing to work with Republicans.

However, he warned that the possibility of agreement could collapse if Democrats regain control of the House in the November midterm elections. Referring to the heightened regulatory pressure on the crypto industry during the Biden administration, he stressed that swift passage of the bill is urgent to protect innovation in blockchain and adjacent sectors such as decentralized finance (DeFi).

Meanwhile, Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, said in a Yahoo Finance interview the same day that “there is still work to be done.” He explained that while the Senate Agriculture Committee has passed half of the legislation covering areas under the Commodity Futures Trading Commission (CFTC), the portion under the Senate Banking Committee must be approved before the two bills can be reconciled and sent to the full Senate for a vote.

Witt emphasized that compromise from both sides is necessary to advance the legislation. He clarified that the bill differs in nature from the stablecoin-focused GENIUS Act, which centers on stablecoin regulation, and described clear jurisdictional boundaries between the U.S. Securities and Exchange Commission (SEC) and the CFTC, along with developer protection provisions, as key mechanisms for the industry’s future. He also mentioned the possibility that the White House could reconvene banks and crypto industry representatives to discuss issues related to stablecoin compensation payments.

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