Simply put
- US Treasury Secretary Scott Bessent stated that the Transparency Act, if passed, could ease the market’s tension following Bitcoin’s recent fluctuations.
- He described the current market response as “spontaneous,” noting that some cryptocurrency companies, including Coinbase, are against certain aspects of the bill.
- Prediction markets suggest a 62% chance the bill will be enacted by 2026.
The cryptocurrency landscape remains quite turbulent, with Bitcoin and Ethereum having experienced significant drops from their peaks last year.
Yet, Bessent contends that the passage of the Transparency Act, also referred to as the Cryptocurrency Market Structure Act, might stabilize the situation.
“If we can clarify this clarity bill, it should ease the market’s worries quite a bit,” Bessent mentioned during an interview. “I think it’s crucial that we get this clarity bill on the president’s desk soon, hopefully by spring.”
The Treasury Secretary remarked that some of the stress in the crypto space—like the over 29% plunge in Bitcoin last month—has been “self-inflicted.”
He elaborated, saying, “There are some Democrats willing to collaborate with Republicans to endorse a market structure bill. But some crypto firms are standing in the way… It doesn’t look promising for the crypto community overall.”
His comments were fairly tempered compared to earlier critiques directed at crypto firms, particularly Coinbase, which has expressed disinterest in supporting the bill in its current configuration.
Last week, he referred to those opposing the clarity bill as “nihilist” and suggested they “move to El Salvador” if they disagree. He has also labeled them as “rebellious actors” during a TV appearance.
Coinbase has recently withdrawn its backing due to a provision in the bill that would limit companies from providing stablecoin yields to users. Brian Armstrong, the CEO of Coinbase, remarked at that time, “It’s preferable to have no bill at all than one that’s deceptive.”
However, Coinbase isn’t the only entity capable of hindering the bill’s progress. Bessent noted that if Democrats gain a majority in the House of Representatives during the upcoming midterm elections, “the chances of a deal will plummet.”
He added, “Look at how the Democrats have treated cryptocurrencies during the Biden administration. It nearly led to a disaster.”
Predictive markets currently estimate the bill has a 62% likelihood of passing by the end of 2026.
