Treasury Secretary Pushes Congress to Fast-Track Crypto Regulation as Banking Groups Stall CLARITY Act

US Treasury Secretary Scott Bessent is turning up the heat on lawmakers, demanding immediate passage of the Digital Asset Market Clarity (CLARITY) Act and warning that Senate floor time is running out. In a Wednesday Wall Street Journal op-ed, Bessent framed the legislation as essential for establishing clear regulatory rules around crypto, tokenized assets, and decentralized exchanges—positioning it as critical to maintaining American financial leadership.

The stakes are undeniably high. With the global crypto market now valued at $3 trillion and roughly one in six Americans holding digital assets, the regulatory vacuum is becoming untenable. "To preserve it and rise to the challenge before us, Congress must pass the Clarity Act. Senate floor time is scarce, and now is the time to act," Bessent wrote.

The Stablecoin Yield Standoff

The CLARITY Act sailed through the House in July 2025, but Senate progress has stalled over a contentious issue: how stablecoin yields should be treated. Traditional banking institutions have lobbied hard against yield-bearing stablecoins, claiming they'd cannibalize lending. However, the White House just delivered a reality check.

On Wednesday, the Council of Economic Advisers released analysis demolishing the banking sector's argument. Their findings: banning stablecoin yields would boost total US bank lending by only $2.1 billion—a mere 0.02% increase in the $12 trillion market. Community banks would see even less benefit at $500 million. Meanwhile, users would face an estimated $800 million annual welfare loss from foregone yields. It's a decisive blow to the industry's negotiating position.

President Trump has already called out banks for using stablecoin yield disagreements as leverage to hold both the CLARITY Act and GENIUS Act "hostage." The political pressure is mounting.

New AML Framework Creates Banking-Style Gatekeepers

Parallel to the CLARITY push, the Treasury unveiled stricter Anti-Money Laundering (AML) and Counter-Terrorism Financing requirements under the GENIUS Act. Payment stablecoin issuers would now need to implement comprehensive compliance programs, mandate sanctions screening, and gain authority to block, freeze, or reject transactions. In essence, they'd operate under the same regulatory framework as traditional financial institutions under the Bank Secrecy Act.

This represents a significant regulatory shift. Snir Levi, CEO of blockchain intelligence firm Nominis, warned Cointelegraph that compliance at scale could trigger substantially more wallet freezes, transaction blocking, and asset seizures. The crypto market intelligence community is watching closely—these rules effectively transform stablecoin issuers into regulated financial gatekeepers.