US Treasury Secretary Scott Bessent is calling on Congress to move swiftly on digital asset legislation, warning that the window for action is narrowing. In an op-ed published Wednesday in the Wall Street Journal, Bessent argued that the Digital Asset Market Clarity (CLARITY) Act is essential for establishing clear regulatory rules covering cryptocurrencies, tokenized assets and decentralized exchanges. He noted that the global crypto market has grown to $3 trillion and that nearly one in six Americans now hold digital assets. According to Bessent, these figures underscore the urgency of US leadership in financial innovation.
The US House of Representatives passed the CLARITY Act in July 2025, but the bill has faced repeated delays in the Senate. The central sticking point has been how stablecoin yields would be treated under the legislation. Traditional financial institutions have cautioned that stablecoin yields could meaningfully reduce bank lending activity, while industry advocates contend that permitting such yields is necessary to drive innovation and maintain US competitiveness in the global digital asset space.
A report released Wednesday by White House economists directly challenged the banking sector’s concerns. The Council of Economic Advisers estimated that prohibiting stablecoin yields would increase total US bank lending by only $2.1 billion, representing just 0.02% of the $12 trillion lending market. Community banks would gain an estimated $500 million under such a ban. The report concluded that the trade-off would not favor consumers, projecting an $800 million annual welfare loss resulting from yields that users would no longer receive.
President Donald Trump has also weighed in, publicly criticizing banks for what he described as using stablecoin yield disagreements to hold both the CLARITY Act and the GENIUS Act hostage. His remarks reflect growing frustration within the administration over the pace of crypto legislation. Bessent echoed that urgency, writing that Senate floor time is scarce and that the moment to act has arrived.
Separately, the Treasury on Wednesday proposed new compliance rules under the GENIUS Act targeting payment stablecoin issuers. The framework would require issuers to establish Anti-Money Laundering and Counter-Terrorism Financing programs, enforce sanctions compliance, and retain authority to block, freeze or reject certain transactions. The proposal would treat stablecoin issuers as financial institutions under the Bank Secrecy Act, significantly expanding their regulatory obligations.
Industry observers say the proposed rules would effectively transform stablecoin issuers into gatekeepers resembling traditional banks. Snir Levi, chief executive of blockchain intelligence firm Nominis, told Cointelegraph that compliance with such requirements could lead to a substantial increase in wallet freezes, transaction blocks and asset seizures across the sector. The dual developments — legislative pressure and new compliance mandates — signal that the regulatory landscape for digital assets in the United States is entering a critical phase.
Originally reported by CoinTelegraph.
