US Treasury Secretary Links CLARITY Bill to Potential Crypto Market Recovery
United States Treasury Secretary Scott Bessent said the passage of the CLARITY crypto market structure bill could help stabilize digital asset markets, arguing that regulatory certainty may improve sentiment during the current downturn.
Speaking to CNBC on Friday, Bessent warned that delays surrounding the legislation have weighed on the industry at a time of heightened volatility. He suggested that clearer rules for digital assets could provide reassurance to investors and market participants.
“In a time when we are having one of these historically volatile sell-offs, I think some clarity on the CLARITY bill would give great comfort to the market, and we could move forward from there,” Bessent said during the interview.
Push for Swift Passage Before Midterms
Bessent emphasized the importance of passing the legislation quickly, ideally before the political landscape shifts following the 2026 US midterm elections. He noted that any change in the balance of power could complicate efforts to move forward with crypto-friendly policies.
He also added that sending the bill to President Donald Trump for signature by the spring legislative window would be critical. According to Bessent, failure to secure passage before the elections could significantly reduce the chances of a deal being finalized.
“I think if the Democrats were to take the House, which is far from my best case, then the prospects of getting a deal done will just fall apart,” he said.
The remarks come as lawmakers continue to debate the structure and scope of digital asset legislation. Industry groups have raised concerns about certain provisions, contributing to delays in moving the bill forward.
Political Dynamics Could Shape Crypto Policy
Analysts and legal experts say the outcome of the midterm elections could determine the future of the Trump administration’s digital asset agenda. Joe Doll, a former general counsel at NFT marketplace Magic Eden, noted that midterm elections often shift the balance of power in Washington.
Economist Ray Dalio previously warned that the current administration effectively has a two-year window to enact its policy priorities before the midterms potentially weaken its mandate. He argued that if crypto-related policies are not codified into law, they could be reversed by future political changes.
At present, the Republican Party holds a narrow majority in the US House of Representatives, controlling 218 seats compared with 214 held by Democrats. The slim margin means even minor electoral swings could alter legislative priorities.
Prediction market data reflects that uncertainty.
Polymarket 2026 US midterm election odds (Source: Polymarket)
On Polymarket, roughly 47% of traders expect the 2026 midterms to result in split control of Congress, with each party holding one chamber. Meanwhile, the odds of Democrats securing a full sweep of both chambers stand at about 37%.
