US Treasury urges Congress to pass CLARITY Act and regulate digital assets across the United States

US Treasury Secretary Scott Bessent is calling on Congress to act quickly on the Digital Asset Market Clarity (CLARITY) Act.

In a Wall Street Journal op-ed, he stressed that Senate floor time is limited, and the moment to secure clear rules for digital assets—including cryptocurrencies, tokenized assets, and decentralized exchanges—is now.

With the global crypto market surpassing $3 trillion and nearly one in six Americans owning digital assets, Bessent warned that US leadership in financial innovation is at stake.

The Legislative Road So Far

The CLARITY Act cleared the US House of Representatives in July 2025 but has faced repeated delays in the Senate.

The key sticking point has been how yields from stablecoins should be treated.

Traditional banks argue that stablecoin yields could reduce lending, while crypto advocates say these yields are vital for innovation and maintaining the US’s competitive edge in digital finance.

White House Pushes Back on Banking Concerns

A new report from White House economists challenges the banks’ warnings.

It found that banning stablecoin yields would increase US bank lending by a mere $2.1 billion—0.02% of the $12 trillion market.

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Community banks would gain just $500 million, while users would face an $800 million annual welfare loss due to lost yields.

President Donald Trump also criticized banks for stalling crypto legislation, calling it a tactic to hold the CLARITY Act and the GENIUS Act “hostage.”

Treasury Proposes Stricter AML Rules for Stablecoins

Alongside the CLARITY push, the Treasury has proposed new rules under the GENIUS Act that require stablecoin issuers to implement Anti-Money Laundering (AML) and Counter-Terrorism Financing programs.

These rules would classify issuers as financial institutions under the Bank Secrecy Act, granting them authority to block, freeze, or reject certain transactions.

Experts warn this could transform stablecoin companies into bank-like gatekeepers, potentially increasing wallet freezes, transaction blocking, and asset seizures.

Global Context

The US is not alone in tackling digital assets.

Dubai recently clarified rules for token issuance and stablecoins tied to Real-World Assets (RWAs), highlighting the growing international focus on regulation.

Industry watchers see these moves as critical to preventing fraud while fostering responsible innovation in the crypto market.

Impact and Consequences

• Market certainty: Passing the CLARITY Act would provide clear rules for cryptocurrencies, stablecoins, and tokenized assets.
• US leadership: Timely legislation ensures the US remains competitive in the global digital finance space.
• Banking implications: Analysis suggests stablecoin yield restrictions would minimally affect lending but could reduce user benefits.
• Compliance burden: Stricter AML requirements could make stablecoin issuers operate like banks, impacting users and transactions.
• Investor confidence: Regulatory clarity could attract institutional participation and mainstream adoption.

What’s Next?

Congress must act quickly to pass the CLARITY Act, while the GENIUS Act regulations on AML and counter-terrorism compliance for stablecoins await further debate.

Industry stakeholders will likely continue lobbying to ensure stablecoin yields remain viable, and close monitoring of international regulatory trends will influence US policy decisions.

Summary

The Treasury is pushing for urgent passage of the CLARITY Act to define the rules for digital assets, countering banking objections about stablecoin yields.

Simultaneously, the GENIUS Act proposes stricter compliance obligations for issuers.

These moves aim to solidify the US’s position in the $3 trillion crypto market while balancing innovation, financial stability, and regulatory oversight.

Bulleted Takeaways

• Treasury Secretary Scott Bessent urges Congress to pass the CLARITY Act immediately.
• Nearly one in six Americans own digital assets, and the global market exceeds $3 trillion.
• Senate delays center on how stablecoin yields are treated.
• White House economists report banning stablecoin yields has minimal impact on bank lending.
• President Donald Trump criticized banks for obstructing crypto legislation.
• GENIUS Act rules would classify stablecoin issuers as financial institutions, increasing compliance duties.
• Stricter AML and transaction oversight could impact user wallets and transactions.
• Regulatory clarity could strengthen US leadership in digital finance.
• International examples, like Dubai, highlight growing global scrutiny of digital assets.
• Passing the CLARITY Act may unlock innovation while balancing financial system stability.