Bessent Says Key Crypto Bill Is Critical for US

U.S. Treasury Secretary Scott Bessent has urged senators to keep the CLARITY Act alive. He has warned that failure to advance the landmark cryptocurrency legislation would undermine America’s leadership in the realm of crypto. 

Bessent has, of course, reiterated his support for the bill that aspires to establish a comprehensive regulatory framework for the cryptocurrency industry.

“In July, I called on the Senate to advance the Clarity Act,” Bessent said, describing the legislation as an effort to create clear rules for digital assets while strengthening the government’s ability to prevent their misuse.

The Treasury secretary also framed the legislation as a matter of national security and international competitiveness.

“Failing to do so would send a troubling signal to our allies and adversaries alike that America is unwilling to lead on the future of digital assets and willing to forgo enhanced national security tools to combat their misuse,” he said.

His intervention comes as the CLARITY Act faces what could be its most consequential test yet.

A critical Senate vote

The Senate is expected to hold an initial procedural vote on the legislation on Sept. 15. The vote will decide whether to move forward with consideration of the bill. The motion is expected to require 60 votes.

Republicans currently hold 53 Senate seats. At least seven Democrats would have to join them. 

Crypto policy advocate Dan Spuller predicted that more Democrats could ultimately cross the aisle than currently expected. However, Republican senators have recently sounded much less optimistic.

Sen. Thom Tillis of North Carolina has warned that the legislation could fail without further compromise.

Democrats have pushed for tougher ethics language governing crypto ventures linked to senior government officials.

Last-minute lobbying blitz

With less than a week before the Senate vote, the crypto industry is dramatically increasing pressure on lawmakers.

The Cedar Innovation Foundation advocacy organization has launched a seven-figure national advertising campaign aimed at building support for the CLARITY Act. The campaign includes three advertisements. 

Sen. Cynthia Lummis, one of Congress’s most prominent cryptocurrency advocates, claims that failing to pass the crucial market structure bill risks surrendering financial leadership to China.