Bessent Blasts Democratic Opposition to CLARITY Act

Treasury Secretary Scott Bessent has defended the CLARITY Act against criticism from some Senate Democrats, arguing that it strengthens compliance standards for crypto intermediaries and protects noncustodial developers.

Bessent rejected claims that the bill weakens consumer protections and urged the Senate to bring the legislation to a vote now. He pointed out that the House passed the bill over a year ago, followed by thousands of hours of bipartisan negotiations involving lawmakers and congressional staff.

The Treasury chief emphasized that Senate Republicans have assembled a floor-ready product, but it's awaiting a vote. Bessent questioned whether Congress had ever chosen to push an emerging industry out of the United States instead of regulating it, warning that failure to approve the legislation would undermine American leadership in the global market.

Bessent also defended the Blockchain Regulatory Certainty Act, saying it simply codifies longstanding Treasury policy that developers of noncustodial software are not subject to registration requirements under the Bank Secrecy Act because they never take custody of customer assets. He added that critics had mischaracterized the provision despite its limited scope.