Bessent Pushes Clarity Act as Bitcoin Slides 29%, Warns Political Gridlock Could Deepen Crypto Turmoil

The cryptocurrency market remains under pressure, with major digital assets retreating sharply from the record highs reached last year. Against this backdrop of volatility, U.S. Treasury Secretary Scott Bessent is urging lawmakers to fast-track the Clarity Act, arguing that regulatory certainty could stabilize investor sentiment.

Speaking to CNBC on Friday, Bessent said that finalizing the crypto market structure legislation would bring much-needed reassurance to the industry. He stressed the importance of delivering the bill to the president’s desk this spring, describing regulatory clarity as a critical step toward calming unsettled markets.

Bitcoin has fallen more than 29% over the past month, a decline Bessent characterized as partly “self-induced.” He suggested that internal disagreements within the crypto sector have complicated efforts to advance comprehensive legislation.

While noting that some Democrats are willing to collaborate with Republicans on a market structure framework, Bessent criticized certain crypto companies for resisting the current version of the bill. He previously labeled opponents of the measure as “nihilists” and “recalcitrant actors,” singling out firms that have withdrawn their backing.

Among the most prominent critics is Coinbase. The exchange stepped away from supporting the bill over provisions that would restrict companies from offering yield on stablecoins to retail customers. CEO Brian Armstrong has publicly stated that the company would prefer no legislation at all over what it considers flawed regulation.

Bessent also raised concerns about the political calendar. If Democrats regain control of the House in the upcoming midterm elections, he warned, the window for bipartisan agreement could close entirely. He pointed to what he described as an aggressively restrictive regulatory climate during the tenure of former President Joe Biden, arguing that previous policies nearly crippled the domestic crypto industry.

With digital asset prices sliding and regulatory debates intensifying, the fate of the Clarity Act may prove pivotal—not just for market structure, but for the broader direction of U.S. crypto policy.