Key Takeaways:
U.S. Treasury Secretary Scott Bessent is urging Congress to pass the Digital Asset Market Clarity (CLARITY) Act, as a new report forecasts stablecoin transaction volumes could swell from $28 trillion last year to $1.5 quadrillion by 2035. The renewed legislative push aims to solidify the U.S. as a hub for financial innovation while the crypto market shows signs of a rebound, with Bitcoin adding 20% since early February.
"The U.S. didn’t become the world’s financial center by hesitating in moments of technological change," Bessent wrote in a Wall Street Journal op-ed published Wednesday. "By passing comprehensive digital-asset market-structure legislation, Congress will ensure that the next generation of financial innovation is built on American rails."
The eye-watering $1.5 quadrillion projection comes from a recent report by blockchain analytics firm Chainalysis, which points to a massive generational wealth transfer and growing acceptance of stablecoins at the point of sale as key drivers. The call for regulation is also bolstered by a new White House Council of Economic Advisers report that challenged banking industry claims about the risks of stablecoin yields, estimating a ban would lift total U.S. bank lending by a mere 0.02%.
Passage of the Clarity Act is seen as a critical step toward providing clear rules for digital assets, from cryptocurrencies like Bitcoin to tokenized real-world assets. The bill passed the House of Representatives in July 2025 but has faced delays in the Senate, reportedly over disagreements on the treatment of stablecoin yields. The Senate Banking Committee is now expected to hold a hearing and vote on the bill before the end of April.
The Treasury Department is not waiting for the Clarity Act to advance its regulatory agenda. On Wednesday, it proposed new rules under the GENIUS Act that would require payment stablecoin issuers to implement robust Anti-Money Laundering (AML) and Counter-Terrorism Financing (CFT) programs. This move would effectively treat issuers like financial institutions under the Bank Secrecy Act, granting them authority to freeze or reject transactions.
The coordinated push from the Treasury and White House appears to be consolidating industry support. Coinbase CEO Brian Armstrong, who had withdrawn the exchange's support for the bill in January over specific concerns, reversed his stance on Thursday. "It's time to pass the Clarity Act," Armstrong posted on X, calling the current version a "strong bill" following months of negotiations.
For investors, the combination of regulatory clarity and a potential end to broader market headwinds could be significant. "When you combine a definitive end to the conflict with the potential passage of the Clarity Act later this quarter, a $100,000 bitcoin price finish for the second quarter is on the table,” said Matt Mena, a crypto research strategist at 21shares, in emailed comments.
This article is for informational purposes only and does not constitute investment advice.
