US Treasury Secretary Scott Bessent shared his views with the public that the legal framework in digital asset markets should be clarified. Bessent stated that the USA is in a decisive position for the future of digital assets and that it is important to complete the legal regulation before the autumn. Bessent took office as Treasury Secretary at the beginning of 2024 and is known for his experience in financial regulations.
Clarity Act and Cryptocurrency Regulations
Bessent emphasized that the Digital Asset Market Clarity Act, which includes the expected regulations in digital asset markets, will be a critical step for cryptocurrency companies and financial institutions operating in the USA. He noted that the increased volatility in the market in recent months has highlighted the need for legal clarity. It was noted that the bill is aimed to be passed by Congress this year in order to eliminate the uncertainties regarding the markets.
Differences of Opinion and Discussion Topics in the Market
There are objections to some of the provisions of the Clarity Act from different segments of the industry. The bill causes controversy, especially on issues such as the returns obtained from stable cryptocurrencies and the powers of regulatory institutions. Cryptocurrency exchange executives share the view that limiting returns on stablecoins could negatively impact US markets. On the other hand, banks and credit unions are concerned that the high returns from stable cryptocurrencies may weaken the funding structure of traditional banking.
Despite the majority in the industry supporting the bill, there are differences of opinion between the two parties on controversial points. Bessent stated that the discussion was shaped especially around incentives in banks and the cryptocurrency sector.
According to Bessent’s statement, resolving controversial issues by law stands out as a more effective way than the uncertainty that would arise through the judiciary.
The bill is advancing with bipartisan support in Congress. However, it is reported that some industry representatives need to be convinced to speed up the process. Bessent expects Congress to come up with a solution before the end of the fall legislative session.
US Government Will Keep Its Bitcoins
Another important development was the new policy regarding bitcoins confiscated by the US government in recent years. Bessent announced that the government will now keep these digital assets in the “Strategic Bitcoin Reserve” instead of selling them. This decision was evaluated as the USA will follow a more active and protectionist strategy in the field of digital assets.
Previously, there were practices to sell bitcoins confiscated by the government. However, in accordance with the newly enacted Presidential Decree No. 14233, the sale of these assets was prohibited and it became mandatory to keep them in government reserve.
Without mentioning the ongoing legal processes, Bessent stated that the confiscated bitcoins would remain under the control of the state only after the judicial process is completed. This step is considered as a move to strengthen the US’s strategic approach on crypto assets.
