Passing the CLARITY Act Could Ease Crypto‑Market Anxiety, Treasury Secretary Scott Bessent Says

Washington, Feb. 14 2026 – In a candid interview with CNBC, U.S. Treasury Secretary Scott Bessent warned that the prolonged stalemate over the CLARITY crypto‑market‑structure bill is weighing on the industry’s mood. He argued that a swift resolution would provide much‑needed reassurance to investors amid what he described as “one of the most historically volatile sell‑offs” the market has seen in recent years.

Bill Status and Industry Concerns

The CLARITY Act, first introduced in early 2025, is intended to codify a clear regulatory framework for digital‑asset exchanges, custodians and other market participants. Its passage has been delayed amid push‑back from several prominent crypto executives who argue that certain provisions could stifle innovation or impose burdensome compliance costs. The impasse, Bessent said, has “negatively impacted the industry” by prolonging uncertainty.

Timing Is Critical

According to the Treasury chief, the window for the legislation to be signed into law is narrowing. He urged that the bill be cleared by the House and Senate and sent to President Donald Trump for his signature during the “spring window” – roughly late March through late June – before the 2026 midterm elections reshape Congress.

“If we can get clarity on the CLARITY bill now, it would give the market a great deal of comfort and allow us to move forward,” Bessent told CNBC.

He added a political caveat: a shift in House control to the Democrats would, in his view, make it far more difficult to achieve a bipartisan deal, potentially “sending the prospects of any deal into the floor.”

Political Landscape

The 2026 midterms are expected to be highly contested. Currently, Republicans hold a slim four‑seat majority in the House (218‑214). Prediction‑market data from Polymarket shows a 47 % probability that the chambers will split, with each party controlling one, while a full Democratic sweep is seen at 37 %.

Economist Ray Dalio has warned that a weakening of President Trump’s two‑year mandate after the midterms could jeopardize the administration’s current pro‑crypto stance, especially if the policies are not embedded in law. “A reversal is possible in 2028 if the current agenda isn’t codified,” Dalio noted on social media earlier this year.

Potential Market Impact

Regulatory certainty is a key driver of institutional participation in crypto. Analysts contend that the CLARITY Act could:

• Standardize market‑infrastructure requirements, reducing operational risk for exchanges and custodians.
• Facilitate U.S.‑based stable‑coin projects by clarifying reserve‑backing and auditing standards, a topic that has already seen recent White‑House‑level discussions with banking and crypto representatives.
• Boost investor confidence, likely narrowing bid‑ask spreads and encouraging inflows from risk‑averse funds that have stayed on the sidelines pending clearer rules.

However, critics argue that the bill’s language may overly constrain decentralized finance (DeFi) protocols and could impose licensing obligations akin to those faced by traditional financial intermediaries.

Key Takeaways

• Treasury’s Message: Scott Bessent sees the CLARITY Act as a market‑stabilising tool; swift passage is essential to restore investor confidence during a volatile period.
• Political Risks: The narrow Republican majority in the House makes the bill’s future uncertain; a shift to Democratic control could stall or derail the effort.
• Timing Pressure: The “spring window” for presidential signing adds urgency, as any delay could push the legislation into the 2026 election cycle.
• Market Outlook: If enacted, the act could catalyse a modest rebound by eliminating regulatory ambiguity, but the extent will depend on how the final language balances oversight with innovation.
• Broader Context: The CLARITY debate sits alongside ongoing talks about stable‑coin regulation and a broader reassessment of crypto’s role in the U.S. financial system.

As the midterm elections approach, stakeholders from exchanges to institutional investors will be watching Capitol Hill closely, weighing both the legislative trajectory of the CLARITY Act and the broader political currents that could shape the future of the U.S. crypto market.

Source: https://cointelegraph.com/news/crypto-sentiment-rise-clarity-passed-bessent?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound