US Treasury Secretary Scott Bessent urged Congress to quickly pass the Digital Asset Market Clarity (CLARITY) Act, saying Senate floor time is scarce and now is the moment to act. In a Wall Street Journal op‑ed, Bessent said the bill is essential to set clear regulatory rules for digital assets, including cryptocurrencies, tokenized assets and decentralized exchanges, noting the global crypto market has grown to about $3 trillion and nearly one in six Americans holds digital assets.
The US House passed the CLARITY Act in July 2025, but the Senate has delayed action amid disputes over how the law would treat stablecoin yields. Traditional banks warn that stablecoin yields could significantly reduce bank lending, while industry advocates contend yields are needed to foster innovation and keep the US competitive in the global digital asset space.
A White House report challenged banking groups’ claims that stablecoin yields pose a major threat to lending. Economists on the Council of Economic Advisers estimated that banning stablecoin yields would increase total US bank lending by only $2.1 billion—about 0.02% of a $12 trillion market—with community banks gaining roughly $500 million. They also estimated a potential annual welfare loss of about $800 million from removing yields for users.
President Donald Trump has criticized banks for using stablecoin yield disagreements to stall crypto legislation, saying they are holding the CLARITY Act and the GENIUS Act “hostage.”
Separately, the Treasury proposed rules under the GENIUS Act that would require payment stablecoin issuers to implement Anti‑Money Laundering and Counter‑Terrorism Financing programs. The framework would mandate sanctions compliance, allow issuers to block, freeze or reject certain transactions, and treat issuers as financial institutions under the Bank Secrecy Act. Industry experts say these measures would effectively turn stablecoin issuers into bank‑like gatekeepers; Snir Levi, CEO of blockchain intelligence firm Nominis, warned compliance could lead to more wallet freezes, transaction blocking and asset seizures at scale.
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