Treasury Secretary Scott Bessent backed the CLARITY Act during a Senate hearing and urged lawmakers to pass it this summer. He also said Treasury is moving ahead with a Strategic Bitcoin Reserve using government-held Bitcoin from forfeitures.
US Treasury Secretary Scott Bessent backed the CLARITY Act during a Senate Finance Committee hearing on the Treasury Department’s fiscal year 2027 budget. He urged lawmakers to pass the crypto market structure bill this summer. The measure is now on the Senate Legislative Calendar after clearing the Senate Banking Committee in a 15-9 vote.
Bessent Urges Action on CLARITY Act
Bessent told senators that the United States needs digital asset legislation to bring crypto activity under clearer domestic rules. “It’s very necessary to bring US best practices onshore,” he said during the hearing.
He also linked the bill to custody standards and US oversight of digital assets. “We work tirelessly in terms of custodying these assets and making the US the innovation capital of the world,” Bessent added.
The CLARITY Act, formally known as the Digital Asset Market Clarity Act, seeks to create a federal framework for crypto markets. It would divide oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission.
Under the proposal, the SEC would oversee digital assets treated as securities. Meanwhile, the CFTC would regulate decentralized digital commodities such as Bitcoin. The bill also covers custody rules, consumer protections, anti-money-laundering standards, and guidance on decentralized finance.
Bitcoin Reserve Advances Under Treasury
Bessent also gave lawmakers an update on the Strategic Bitcoin Reserve. He said Treasury is working on the reserve using Bitcoin already held by the federal government through criminal and civil forfeitures.
“We are proceeding with all deliberate speed,” Bessent said. However, he described the process as complicated and said officials are working to create a durable framework.
The reserve follows President Donald Trump’s executive order on government-held digital assets. The order created a Strategic Bitcoin Reserve and a separate digital asset stockpile. Current estimates place US government Bitcoin holdings near 207,000 BTC, mainly from seized assets.
Senator Cynthia Lummis has also pushed a broader reserve plan through the BITCOIN Act. Her proposal would place the reserve framework under congressional approval. That proposal remains separate from the CLARITY Act.
US Senate Vote Expected After July Recess
The CLARITY Act moved to the Senate Legislative Calendar after the Senate Banking Committee approved it in May. The committee vote showed bipartisan support, with 15 senators backing the measure and 9 opposing it.
A full Senate vote is expected after the July 4 congressional recess. Lawmakers are still reviewing several provisions, including stablecoin rewards, software developer protections, custody standards and consumer safeguards.
Banking groups have raised questions about the stablecoin provisions. Some lawmakers are also seeking stronger protections before final approval. Meanwhile, more than 160 former national security, intelligence and law enforcement officials have urged Senate leaders to move the bill forward.
Those officials said federal oversight could support law enforcement work and keep more digital asset activity inside regulated US markets. Their letter added another policy angle to the debate as Senate negotiations continue.
Developers and Investors Await Final Text
For developers, the CLARITY Act could define how blockchain products operate under federal law. It may also clarify which agency oversees specific tokens, platforms and services.
Crypto exchanges, custodians and decentralized finance projects are also watching the final language. The bill could affect registration duties, compliance requirements and product launches in the United States.
For investors, the legislation could set clearer rules for trading, custody and token classification. Institutional firms are also monitoring the bill as they assess legal requirements across digital asset markets.
Bessent’s remarks added Treasury support to the summer push for crypto legislation. At the same hearing, his comments on the Bitcoin reserve showed that the administration is working on both market rules and government-held digital assets.
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