US Treasury Secretary Advocates for Crypto Market Structure Bill to Stabilize Market
As the cryptocurrency market experiences fluctuations, the United States Secretary of the Treasury has emphasized the urgent need for legislative clarity. The call for a comprehensive crypto market structure bill this spring aims to provide stability and reassurance to the industry.
Bessent’s Urgent Call for Legislative Action on Crypto
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On a recent Friday, Treasury Secretary Scott Bessent implored US lawmakers to expedite the passage of a long-stalled crypto market structure bill. He stressed the importance of delivering this legislation to President Donald Trump’s desk before the spring legislative session concludes.
In an interview with CNBC, Bessent attributed part of the recent market turbulence to industry reactions to the pending bill. He noted that some digital asset firms have resisted the legislation, which has not been beneficial for the broader cryptocurrency community.
The Stalemate over the CLARITY Act
The much-anticipated CLARITY Act has faced delays, lingering in legislative limbo for almost a month following the Senate Banking Committee’s draft release. The proposed legislation has faced criticism from key industry figures, particularly regarding its stringent stipulations for stablecoin issuers.
According to the Treasury Secretary, enacting the bill would bring significant comfort to a market fraught with volatility. Additionally, he acknowledged a collaborative effort from a bipartisan working group focused on advancing this crucial legislation.
Potential Political Hurdles
Bessent cautioned that the progress of the bill could be jeopardized if Democrats assume control of the House of Representatives in upcoming elections, pointing to the Biden administration’s stringent stance on the industry.
“There’s immense innovation surrounding crypto, blockchain, and DeFi,” he remarked. “It’s imperative to finalize this clarity bill promptly and present it to the president this spring.”
Progress and Challenges in Crafting the Bill
Patrick Witt, executive director of the US President’s Council of Advisors for Digital Assets, addressed the ongoing efforts to finalize the crypto market structure bill in a discussion with Yahoo Finance.
Witt expressed optimism, stating, “We are actively resolving issues that delayed the bill’s progress and hope to resume discussions soon.”
Path to a Unified Legislative Framework
Witt highlighted that the Senate Agriculture Committee successfully passed its segment of the CLARITY Act, which pertains to the Commodity Futures Trading Commission (CFTC). The next step involves the Senate Banking Committee’s portion, which must be reconciled before a final Senate vote.
“While we still have work to do, the passage of the Agriculture Committee’s portion marks significant progress,” Witt commented.
Finding Common Ground
Witt emphasized the necessity for compromise from both political factions. “It’s unfortunate that this issue has become a point of contention. Ultimately, this isn’t the stablecoin bill known as the GENIUS Act,” he remarked.
He urged stakeholders to find a middle ground, focusing on specific issues without derailing the entire bill. “There’s substantial value in this bill, regardless of your viewpoint,” Witt concluded.
Noteworthy Provisions in the Proposed Legislation
The bill boasts several significant measures, including a clear delineation between the regulatory authorities of the SEC and CFTC, as well as developer protections. Witt emphasized these elements as vital for safeguarding the industry’s future against potential regulatory challenges.
In closing, Witt mentioned the possibility of another White House-led meeting between banking and crypto industry leaders to deliberate on stablecoin reward mechanisms.
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