Bitcoin edges lower as Clarity Act outlines SEC–CFTC split

Bessent urges Congress to pass the Digital Asset Market Clarity Act

U.S. Treasury Secretary Scott Bessent urged Congress to pass federal rules for digital assets “this spring,” framing the Digital Asset Market Clarity Act (the Clarity Act) as a market-structure priority. According to Reuters, his message centered on ending ambiguity and establishing clear guardrails for crypto activities.

His push comes amid elevated policy discussions in Washington on digital assets, prudential oversight, and market integrity. The Treasury emphasis has been on durable frameworks rather than emergency interventions, with lawmakers weighing prudential, securities, and commodities considerations.

Why it matters: SEC–CFTC split, stablecoin yield, market stability

The bill is designed to assign responsibilities between market regulators and payment supervisors. As reported by Tekedia, the Clarity Act would end years of uncertainty by delineating oversight between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, clarifying categories such as payment stablecoins versus investment contracts.

A central flashpoint is whether stablecoin issuers or crypto platforms can offer yield-like rewards. According to Crypto Valley Journal, banking groups warn such programs could trigger deposit flight from community banks, while industry participants argue blanket prohibitions would curb competition and innovation.

“We’d rather have no bill than a bad bill,” said Brian Armstrong, CEO of Coinbase.

Bessent has emphasized that financial stability remains a core objective in negotiations and that payment innovations should not undermine deposit safety. “We will continue to work to make sure there is no deposit volatility associated with this,” said Scott Bessent, U.S. Treasury Secretary.

At the time of this writing, Coinbase Global (COIN) traded near $161.04, up about 10% intraday, based on data from Yahoo Finance. Bitcoin  BTC +0.00% also slipped below $71,000 following related remarks, as reported by MSN.

Key implications: oversight, stablecoins, tokenization, DeFi, timing

Stablecoin rewards debate: banks warn of deposit flight; industry objects

Banking associations have pressed lawmakers to bar nonbank platforms from paying interest, yield, or rewards on payment stablecoin balances, citing deposit flight risks and regulatory parity concerns. As reported by Decrypt, these groups view rewards as functionally similar to insured deposits without equivalent oversight.

Industry leaders counter that well-defined disclosures and capital rules could govern rewards without an outright ban. According to Cointelegraph, critics warn that prohibitions may weaken U.S. competitiveness if other jurisdictions allow yield-bearing digital currencies tied to major fiat units.

SEC vs CFTC jurisdiction, tokenized securities, DeFi, and bill timeline

Questions persist over which assets fall under securities versus commodities rules and how tokenized equities would be treated. Bitcoin Magazine has reported that some industry voices fear a de facto ban on tokenized securities and expanded enforcement reach over DeFi under certain drafts.

Legislative timing remains uncertain. As reported by Investopedia, the bill has stalled in the Senate Banking Committee with postponed markups, and shifting industry support has complicated the path, even as negotiations continue.