U.S. Treasury Secretary Scott Bessent said the appropriate approval and enactment of the Clarity Act could provide “respite” to the Bitcoin (BTC) market, which has seen its valuation decline by more than 50% since its previous high.
According to Bessent, interviewed on CNBC, just as BTC experienced a drop very similar to what it experienced in past market cycles: The promotion and approval of this bill will be beneficial to the industry. The latter is supporting the bearish performance of BTC and the rest of digital assets since October 2025.
The urgency for final approval of the Clarity Act is in response to the fact that Americans will vote to form a new Congress in November. It is essential for Donald Trump’s administration to achieve tangible results, such as regulating the virtual currency field. that, before the composition of Congress could change.
“At a time when we’re suffering from a historically volatile decline, I think any clarity on the law of clarity would give the market a lot of respite,” Bessent said. “It is imperative that (the Clarity Act) be enforced,” he said.
What Bessent calls “rest” is all about system stability and the entry of institutional capital into the cryptocurrency ecosystem. These are realized as a result of the approval of the Clarity Act. Additionally, you should consider that Bitcoin is an asset that: tend to respond positively to regulatory certaintyThis is ideal for markets, especially in the middle of autumn.
In fact, Bitcoin is experiencing a bearish period. From its all-time high of $126,000 in October 2025, the digital currency has fallen 42.9% to $67,000 at the time of writing.
This is a bearish move, according to Bessent. Those in the crypto sector are already used to it.
However, the Bitcoin market has been flat in recent weeks. Therefore, positive signals from lawmakers in Washington could lead to bullish action in this area.
The following graph clearly shows the decline in BTC since October last year.
Differences over clarity laws impact Bitcoin and cryptocurrencies
The official explained that recent market weakness is partly a response to: Regarding the differences surrounding this bill. As you can see, this is a “self-inflicted change” due to the contradictions that delayed the passage of the Clarity Act into law.
So, he recalled that while there is a group of Democratic lawmakers who want to work with Republicans to pass the Clarity Act, there is also “a group of crypto companies that are blocking it.”
“They say, ‘I’d rather have this law than not have it.’ And that doesn’t seem to be good for the crypto community as a whole,” he noted. And he reinforced his position, which he announced a few days ago, in which he called entrepreneurs in the crypto sector who reject Clarity’s status quo “rebellious actors” and urged them to move to El Salvador if they don’t want their regulation.
The Clarity Act, which aims to give structure to the U.S. cryptocurrency market, has stalled in Congress due to a series of disagreements between bankers and companies in the emerging sector. generally, About the benefits that stablecoins provide to users.
In this regard, the traditional banking sector would like to acknowledge that if these benefits are approved, There will be a ‘leakage’ of deposits amounting to US$6 trillionThis number represents 30% of all U.S. commercial deposits. Meanwhile, crypto market participants argue that it will become even more competitive against the banking sector.
The accusations prompted the involvement of the White House, which has served as headquarters for talks between the two parties. This is to clarify the situation and move forward with the approval and promulgation of the Clear Act, as reported by CriptoNoticias.
Risk of loss of Clarity
During his intervention, Commissioner Bessent also addressed the possibility that the Clarity Act would never materialize, and instead A ship that was wrecked on the way.
For the political scientist and investment manager, if Democrats take control of the House of Representatives this year, when the U.S. holds midterm elections, “any chance of a deal will be completely destroyed.”
The source claims that Democratic politicians have no interest in the crypto sector. In their opinion, these politicians It would delay any attempt to further market regulation. In case they get a majority in Congress.
“Look at what Democrats have done to the[cryptocurrency]sector under the[Joe]Biden administration. It was a near-extinction event. Instead, President[Donald]Trump has been working to turn the United States into the digital asset capital of the world,” Bessent commented.
He added that there is currently a lot of innovation happening around the cryptocurrency ecosystem. “For this reason, I believe it is important that the Clarity Act be approved as soon as possible and reach the President’s desk this spring.” Bessent has already called for an expedited resolution on Clarity. By viewing the task of regulating markets as “impossible” Without that law.
