On Thursday, U.S. Treasury Secretary Scott Bessent criticized crypto industry leaders who are resisting the Clarity Act’s passage, labeling them ‘nihilists’ that need to be overcome for the bill’s advancement. In a Wall Street Journal op-ed published Wednesday, Bessent noted that many crypto developments have moved to regions with clear regulations, like Abu Dhabi and Singapore. ‘The only way to encourage developers and entrepreneurs to return is through durable law,’ he stated.
The Clarity Act, which aims to legalize most of the crypto industry’s activities, remains stalled in the Senate despite commitments from Republicans for a critical vote later this month. Key disagreements among stakeholders continue unresolved.
A major conflict involves stablecoin yield payments on customer holdings between some crypto companies and banks. For years, Congress has been attempting to establish a legal framework for finance’s future.
Bessent urged Republican senators via Twitter on April 9, 2026: ‘It’s time for@BankingGOPto hold a markup and send the CLARITY Act to President Trump’s desk. Senate time is precious, and now is the time to act.’
In January, Coinbase withdrew its support from the Clarity Act over language potentially restricting stablecoin yield programs backed by banks. Both industries have since struggled to reach a compromise.
A bipartisan group of senators and the White House proposed a compromise last month, but Coinbase disagreed with it, as sources told Decrypt. A new proposal is now circulating on Capitol Hill, causing frustration among banking industry stakeholders, according to other sources.
‘A real risk to lending and economic growth exists if we don’t tighten yield prohibition,’ a banking source stated in a comment shared withDecrypt.
With the Clarity Act’s passage uncertain this spring before the midterm elections halt legislative activity over summer, Congressional leaders are anxious. Originally intended for last July, the bill’s timeline has slipped multiple times, now indicating it may not pass by May under current conditions, per pro-crypto senators.
‘Barely any Senate floor time remains; it’s time to act,’ Bessent emphasized on Thursday.
Even if the stablecoin yield issue is resolved soon, challenges persist. One involves President Trump’s crypto ventures, which some pro-crypto Democrats insist must be banned for their support. The White House has resisted such demands.
This contentious topic is expected to resurface as Trump’s meme coin supporters plan an exclusive event at Mar-a-Lago on April 25 during efforts to pass the Clarity Act through the Senate Banking Committee. The event will feature a ‘gala luncheon’ with Trump, who will later attend the White House Correspondents’ Dinner in Washington.