Bessent urges Congress to pass crypto regulation bill

April 8 (Reuters) – U.S. Treasury Secretary Scott Bessent said Congress must pass a bill to create federal rules for digital assets, reiterating the push for rules that he says will ensure cryptocurrency development and investment remain anchored in the U.S.

Bessent urged passage of a crypto market structure bill called the Clarity Act.

“The regulatory framework for digital asset markets is unclear,” Bessent said in an op-ed published in the Wall Street Journal on Wednesday, adding that this uncertainty had predictable consequences. 

“A growing share of crypto development relocated to places with clear rules, such as Abu Dhabi and Singapore. Abroad, firms knew when and how to register, what standards to meet, and how to operate. The benefits of domiciling in the U.S. rarely outweighed the risks,” Bessent wrote.

The Clarity Act aims to create federal rules for digital assets, the culmination of years of crypto industry lobbying. Crypto companies have long argued that existing rules are ‌inadequate for digital assets, and that legislation is essential for companies to continue to operate with legal certainty in the U.S.

Crypto market structure legislation has been held up by a clash for months between the banking and cryptocurrency industry over how the bill treats interest and other rewards paid on stablecoins. Banks have been pushing for language in the bill prohibiting the practice.

The House of Representatives passed its version of the bill in July.

In February, Bessent said the bill would give “great comfort to the market” at a time of great volatility, adding that cryptocurrency firms have tried to block the legislation, but that there is a bipartisan group of lawmakers who want to get it passed.

(Reporting by Anusha Shah in Bengaluru; Editing by Christian Schmollinger)