Bessent Drops the Mic: 'CLARITY Act or Bust' as Senate Drag Feet on Stablecoin Yield Drama

US Treasury Secretary Scott Bessent has officially run out of patience. In a Wall Street Journal op-ed on Wednesday, he basically told Congress to stop dragging their feet and pass the Digital Asset Market Clarity (CLARITY) Act NOW, warning that Senate floor time is running out faster than a degen's portfolio in a bear market.

The legislation aims to establish clear regulatory rules for digital assets, including cryptocurrencies, tokenized assets and decentralized exchanges. With the global crypto market climbing to $3 trillion and nearly one in six Americans holding digital assets, Bessent argued the stakes for US leadership in financial innovation have never been higher.

"To preserve it and rise to the challenge before us, Congress must pass the Clarity Act. Senate floor time is scarce, and now is the time to act," he wrote. Mic drop, apparently.

The US House of Representatives passed the CLARITY Act in July 2025, but the Senate has repeatedly delayed the legislation over how stablecoin yields would be treated. Traditional financial institutions have warned that stablecoin yields could significantly reduce bank lending, while industry advocates argue they are essential to unlock innovation and keep the US competitive.

Meanwhile, a White House report on Wednesday pushed back against banking groups' claims that stablecoin yields pose a major threat to traditional lending. The Council of Economic Advisers estimated that banning stablecoin yields would only lift total US bank lending by $2.1 billion, or 0.02% of the $12 trillion market, with community banks gaining just $500 million. However, such a ban would impose an $800 million annual welfare loss due to lost yield for users. Spoiler alert: the banks aren't exactly winning this math problem.

President Donald Trump has also slammed banks for obstructing crypto legislation, arguing they are using stablecoin yield disagreements to hold the CLARITY Act and GENIUS Act "hostage."

On the regulatory front, the Treasury proposed new rules under the GENIUS Act on Wednesday, requiring payment stablecoin issuers to implement Anti-Money Laundering and Counter-Terrorism Financing programs. The framework would mandate sanctions compliance and give issuers the authority to block, freeze or reject certain transactions, treating them as financial institutions under the Bank Secrecy Act.

Industry experts say this effectively turns stablecoin issuers into bank-like gatekeepers. Snir Levi, CEO of blockchain intelligence firm Nominis, told Cointelegraph that compliance could lead to significantly more wallet freezes, transaction blocking and asset seizures at scale. Nothing says "financial freedom" quite like your stablecoin getting frozen because you bought the wrong meme coin.