Scott Bessent Warns U.S. Risks Falling Behind in Tech Competition Without Crypto Clarity Act

U.S. Treasury Secretary Scott Bessent has warned that continued regulatory uncertainty in the virtual asset space could see the United States fall behind in technological innovation competition, urging Congress to pass the Digital Asset Market Clarity Act (Clarity Act).

In a Wall Street Journal op-ed, Bessent stated that the lack of clear regulation has led development to move toward jurisdictions like Abu Dhabi and Singapore, which have established regulatory frameworks. He noted that the benefits of operating in the U.S. no longer outweigh the risks.

The Clarity Act is a bill aimed at establishing federal regulations for digital assets. The House passed the legislation last July, while debate continues in the Senate over stablecoin compensation issues.