Bessent Calls Out the N-Word (Nihilists) as Stablecoin Yield Drama Threatens Clarity Act's Glow-Up

Treasury Secretary Scott Bessent apparently ran out of patience for crypto's perpetual infighting. In a Wall Street Journal op-ed dropped late Wednesday, the Secretary unloaded on industry holdouts still stalling the Clarity Act, branding them "nihilists" who need to get out of the way before America can have nice things in finance.

"A growing share of crypto development relocated to places with clear rules, such as Abu Dhabi and Singapore," Bessent wrote. "Though industry nihilists may argue otherwise, there is one way to give developers and entrepreneurs the comfort to reshore: durable law."

The Clarity Act—a bill that would formally legalize most crypto activity by creating a comprehensive market structure framework—remains stalled in the Senate. Senate Republicans say they'll hold a long-delayed vote later this month, but key disputes remain unresolved.

The biggest sticking point? Stablecoin yield.

Crypto companies and the banking industry have been going at it for months over whether issuers should be allowed to pay yield on stablecoin holdings. In January, Coinbase pulled its support over language backed by the banking lobby that could restrict such programs. A bipartisan group of senators and the White House proposed a compromise last month, but Coinbase took issue with it, sources told Decrypt. A revised proposal is now floating around Capitol Hill—and naturally, the banking industry isn't thrilled about it.

"We continue to offer our constructive ideas for tightening the yield prohibition because of the real risks to lending and economic growth," a banking industry source said.

Time is running out. If the bill isn't passed by May, pro-crypto senators say it's unlikely to pass this year under the current Republican trifecta. Midterm elections loom, and summer gridlock is basically a guarantee.

But wait, there's more. President Donald Trump's personal crypto ventures are also complicating things. Several pro-crypto Senate Democrats say Trump's meme coins and token ventures need to be outlawed before they'll support the bill. The White House isn't having it.

Adding to the circus: backers of Trump's meme coin are hosting an exclusive Mar-a-Lago gala for top token holders on April 25—right in the middle of the Clarity Act push. Trump himself is expected to attend. Later that evening, he'll be at the White House Correspondents' Dinner in Washington.

Congress has spent half a decade trying to onshore the future of finance. The future, apparently, is still waiting for an RSVP.