US Treasury Secretary Scott Bessent has argued that there is an urgent need to establish a legal framework for the cryptocurrency industry. This was made yesterday during an appearance before the Senate Banking Committee.
In a direct exchange with Sen. Cynthia Lummis, the official emphasized that approval of the Transparency Act is an essential requirement for the country’s economic development.
According to Bessent, market players who resist government oversight They already have established regulations as an alternative jurisdictionwith particular reference to El Salvador.
During a session included in the Financial Stability Oversight Council’s annual report, Senator Lummis, a champion of the cryptocurrency ecosystem, consulted with the Secretary on the relevance of having a market structure that defines clear rules. In light of this, Mr. Bessent frankly stated:
I don’t think it’s possible to move forward without regulation. We must get the Clarity Act across the finish line. And market participants who don’t want that should move to El Salvador.
Scott Bessent, US Secretary of the Treasury
U.S. officials told Sen. Lummis that the goal was not to limit innovation; An intermediate point that guarantees stability About the American financial system.
“It seems like there are some people who want to live in the United States but don’t want to have rules for this very important industry,” he said. And he said, “We must implement safe, robust, and intelligent practices under the oversight of the U.S. government, while also recognizing the freedom that cryptocurrencies represent.”
For Bessent, there is a balance in the field that is “being defined” and he believes there will be bipartisan support for the Clarity Act. “I am confident that with leadership from both parties, we can achieve regulatory clarity this year,” he said.
Bessent’s proposal regarding El Salvador is no coincidence. The country, chaired by Nayib Bukele, has strengthened its regulatory ecosystem favoring companies in the sector since adopting Bitcoin as legal tender in 2021.
The opening attracted giants of the digital asset industry such as Tether Limited, the largest issuer of the USDT stablecoin on the market. The company maintains operational and strategic cooperation with the Salvadoran government.
Cooperation with community banks
On the other hand, the integration of the crypto industry into the US economy will not be limited to large Wall Street institutions.
Bessent made it clear that the Treasury Department is working. Allowing smaller traditional banks to participate in this process. “We have been working with small and community banks to explore how they can also participate in the digital asset revolution,” the Secretary said.
In line with the above, CriptoNoticias reported that several proposals have been put forward that aim to “tame” and incorporate US banks into the ecosystem in an attempt to remove the blockage from the discussion surrounding the Clarity Act.
One of those suggestions is a community bank. Protect your dollar stablecoin reserves. And the other thing is that these regional institutions have the ability to issue their own stable cryptocurrencies.
After testifying, Secretary Bessent strengthened his position and thanked Mr. Lummis for his efforts to advance market structure legislation.
“It is critical that the Transparency Act be signed into law. The digital asset revolution is here, and with leadership from both sides of the aisle, I am confident we can get it to the finish line,” the Secretary concluded.
With estimates putting April 3rd as the likely date for the president to sign the Clarity Act, Bitcoin’s fate in major economies appears to be close to its legal definition.