U.S. Treasury Secretary Scott Bessent said Friday that Congress must move quickly to pass crypto legislation establishing clear federal rules for digital assets, urging lawmakers to deliver the bill to President Donald Trump’s desk for signature this spring.
Speaking on CNBC, Bessent was asked about the status of the proposed “Clarity Act” amid a recent sell-off across the crypto market.
He said the bill would provide “great comfort to the market” during a period of heightened volatility, signaling the administration’s push to create a more defined regulatory framework for the sector.
Bessent added that some crypto firms have attempted to block the legislation, but noted there remains a bipartisan coalition of lawmakers committed to advancing the bill.
However, he warned that the coalition’s momentum could weaken if Democrats regain control of the House of Representatives in November.
Last week, Bessent urged Congress to pass the legislation, warning that the U.S. needs clear crypto market structure rules before the spring legislative window closes.
Bessent told Fox News that “what we’re seeing in the crypto market over the past few months means more than ever that the U.S. needs market structure, we need clarity, and we need to get this across the line this spring,” he said.
He said recent volatility in bitcoin and digital asset markets underscores the urgency of legal certainty.
Bessent blamed the current stalemate on resistant factions within both the crypto industry and traditional finance, with disputes centering on stablecoin yield restrictions and regulatory oversight.
Potential crypto tax breaks
At a Senate Banking, Housing and Urban Affairs Committee hearing on the Financial Stability Oversight Council’s annual report, Bessent was pressed by members of Congress on whether China is using blockchain and digital assets to challenge American financial leadership, with Bessent saying Treasury has not observed rumored gold-backed Chinese instruments but noting China’s activity through Hong Kong.
The discussion shifted quickly to U.S. regulation, where Bessent voiced strong support for the proposed Clarity Act, arguing that digital asset innovation should be embedded within the U.S. economy under “safe, sound, and smart” oversight.
He also warned that deposit volatility from crypto-related legislation could harm community and small banks by limiting their ability to lend locally.
Senator Cynthia Lummis raised the possibility of a de minimis Bitcoin tax exemption for small transactions and asked for clearer guidance on calculating capital gains across mixed-cost portfolios, with Bessent offering to have Treasury’s tax policy office engage with her team.
The hearing followed Bessent’s earlier testimony that the government cannot bail out bitcoin or direct banks to hold crypto, and that seized BTC will now be retained in the Strategic Bitcoin Reserve rather than sold.
Source: https://bitcoinmagazine.com/news/congress-needs-to-pass-crypto-legislation
