Nevertheless, the White House’s broader effort to regulate cryptocurrency markets encountered a setback when Congress did not enact the Clarity Act, which would have created a federal framework for the industry.
Bessent described the failure as disappointing but emphasized that the Treasury Department could collaborate with agencies such as the SEC and CFTC to enhance oversight via administrative actions.
“At Treasury, we possess significant convening authority,” he said, characterizing the SEC and CFTC as “excellent partners” in developing a regulatory framework that could serve as a model for other nations.
The agencies’ regulatory initiatives could offer greater clarity for crypto firms, although rules issued by regulators would lack the permanence of statutory law.
Bessent also addressed industry concerns about debanking — a term describing financial institutions discontinuing services to crypto businesses, allegedly under regulatory pressure.
He noted that the Clarity Act would have helped prevent a resurgence of such practices, but argued that regulatory safeguards could still provide protection.
“I believe we can establish regulatory best practices and guardrails to prevent a recurrence,” Bessent said.
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