Treasury Secretary Scott Bessent publicly criticized crypto industry figures who continue to oppose the Clarity Act, labeling them ‘nihilists’ in an op-ed published Wednesday in the Wall Street Journal. Bessent argued that a growing share of crypto development has moved to jurisdictions with established regulatory frameworks, citing Abu Dhabi and Singapore as examples. He contended that only durable legislation can persuade developers and entrepreneurs to bring that activity back to the United States.
The Clarity Act is a crypto market structure bill designed to formally legalize most industry activity, but it remains stalled in the Senate. Senate Republicans have committed to holding a long-delayed vote on the legislation later this month, though significant disagreements among key stakeholders have yet to be resolved. Bessent took to social media on Thursday to urge the Senate Banking Committee to advance the bill to President Trump‘s desk without further delay.
The central dispute involves whether crypto companies should be permitted to pay yield on stablecoin holdings to their customers. Coinbase withdrew its support for the Clarity Act in January over language in the bill, backed by the banking lobby, that could have restricted such yield programs. For months, the two industries have attempted to negotiate a compromise, without success.
Last month, a bipartisan group of senators and the White House put forward a proposed compromise intended to settle the stablecoin yield question. However, sources familiar with the matter told Decrypt that Coinbase objected to the proposal. A revised version is now circulating on Capitol Hill, but that iteration has drawn objections from the banking industry, according to separate sources close to the deliberations.
A banking industry source shared a statement with Decrypt indicating the sector continues to push for a tighter yield prohibition, citing concerns about risks to lending and broader economic growth. Congressional leaders are increasingly worried that time is running out for the bill to pass before the summer, when midterm election pressures are expected to bring legislative activity to a standstill. Key pro-crypto senators have signaled that if the Clarity Act does not clear the Senate by May, it is unlikely to pass this year under the current Republican trifecta.
The bill’s authors originally targeted passage by last July, with deadlines subsequently slipping to September, then December, and then January of this year. Even if the stablecoin yield dispute is resolved in the coming weeks, additional obstacles remain. Several pro-crypto Senate Democrats have stated they will not support the legislation unless provisions are added to prohibit President Trump’s personal crypto ventures, a demand the White House has rejected.
That issue is expected to draw renewed attention around April 25, when backers of Trump’s meme coin are scheduled to host an exclusive event for top token holders at Mar-a-Lago, with Trump himself reportedly set to appear at a gala luncheon. The event falls during the period when supporters are pushing hardest to move the Clarity Act through the Senate Banking Committee. Trump is also scheduled to attend the annual White House Correspondents’ Dinner in Washington later that same evening.
Originally reported by Decrypt.
