Secretary Bessent Champions the CLARITY Act as the Final Pillar for U.S. Crypto Dominance
On February 10, 2026, Treasury Secretary Scott Bessent issued a forceful endorsement of the Digital Asset Market CLARITY Act, expressing high confidence that the stalled legislation will finally pass through the Senate this spring. Speaking during a high-profile testimony before the Senate Banking Committee, Bessent characterized the bill as “essential plumbing” for the modern financial system, arguing that the United States cannot achieve its goal of becoming the global “crypto capital” without a definitive statutory framework. The Secretary’s optimism comes despite a month of intense gridlock, during which industry leaders and banking lobbyists have clashed over specific policy language. Bessent notably took aim at what he described as a “nihilist group” within the crypto sector that allegedly prefers a regulatory vacuum over the “very excellent regulation” offered by the current draft. By urging lawmakers to “get this across the finish line,” the Treasury head is signaling that the administration views the spring legislative window as a critical moment to transition digital assets from the periphery into the heart of the regulated economy.
Resolving the Jurisdictional Tug of War Between the SEC and CFTC
The central promise of the CLARITY Act is its attempt to once and for all resolve the decade-long jurisdictional battle between the Securities and platform Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The proposed legislation establishes a “bright line” by granting the CFTC exclusive jurisdiction over “digital commodity” spot markets while preserving the SEC’s authority over assets deemed investment contracts. This move is designed to replace the controversial “regulation-by-enforcement” model with a workable statutory framework that provides entrepreneurs with clear rules of the road. Bessent emphasized that providing this legal certainty is the only way to prevent the continued exodus of capital, jobs, and innovation to offshore jurisdictions. The bill also includes a tailored disclosure regime that allows legitimate projects to raise capital while maintaining rigorous investor protections and market manipulation secureguards. For the Treasury, this structural reform is not merely about oversight, but about creating a durable, cross-political foundation that can withstand future shifts in the administrative landscape.
Tackling the Yield Impasse and Securing the National Banking System
A major hurdle for the CLARITY Act remains the fierce debate over stablecoin yields and the “disintermediation” of traditional banks. The current version of the bill prohibits non-bank entities—such as cryptocurrency platforms—from paying “passive yields” to stablecoin holders, a provision intended to protect community banks from massive deposit outflows. Secretary Bessent addressed this controversy directly, calling on “stubborn participants” like Coinbase to recognize that a regulated financial system requires clear distinctions between payment tools and investment vehicles. While the industry has pushed for the ability to offer “activity-linked incentives” or loyalty rewards, the Treasury maintains that allowing stablecoins to function as interest-bearing deposit substitutes could undermine the stability of the fractional reserve banking system. As the Senate Banking Committee rebegins its closed-door negotiations this week, the White House is betting that the promise of total regulatory clarity will eventually outweigh the industry’s resistance to yield restrictions. The passage of the CLARITY Act this spring would represent the most significant update to U.S. financial laws in a generation, officially integrating blockchain technology into the national economic fabric.
