But if the United States government passes the Clarity Act, also known as the crypto market structure bill, U.S. Treasury Secretary Scott Bessent believes that it would provide calm to markets.
The Treasury Secretary called some of crypto’s recent pain, which has seen Bitcoin fall more than 29% in the last month, “self-induced.”
“There is a group of Democrats who want to work with Republicans on getting a market structure bill,” he added. “But there are a group of crypto firms who have been blocking it… that doesn’t seem to have been good for the overall crypto community.”
American crypto exchange Coinbase pulled its support over a section of the bill that would limit companies from providing yield on stablecoins to consumers. At the time, Coinbase CEO Brian Armstrong said, “We’d rather have no bill than a bad bill.”
It’s not just Coinbase that could derail the bill’s completion, though. Bessent also noted that if Democrats were to earn the majority in the House of Representatives during the midterm elections later this year, the “prospects of getting a deal done will just fall apart.”
“Look at what the Democrats did to crypto under the Biden administration. It was almost an extinction event,” he said.
