US Treasury Secretary Scott Bessent told the Senate Banking Committee that, over time, conventional banks and crypto firms could provide many of the same products and services. When Senator Cynthia Lummis asked whether the two sectors might converge, Bessent said it was possible and noted the Treasury is engaging with small and community banks about participating in the digital asset space.
Bessent said meaningful progress hinges on clear rules and urged support for the CLARITY Act now before Congress. He argued that effective oversight should be paired with the freedoms innovation can bring, and stressed the need for safe, sound, and smart practices under U.S. government supervision.
The CLARITY Act has stalled in the Senate Banking Committee as bipartisan talks remain deadlocked, in part over proposed limits on stablecoin yields that some crypto firms, including Coinbase, have opposed. Bessent warned that deposit volatility would be undesirable because stable deposits enable banks to lend in their communities, and he said the Treasury will work to ensure digital assets do not cause deposit instability.
This week, several crypto companies reportedly offered concessions to try to break the impasse, proposing a greater role for community banks in the stablecoin ecosystem as a path to advance the bill through the Senate. Lawmakers, industry participants, and regulators continue negotiating a framework intended to balance consumer protection, financial stability, and innovation.