Crypto’s $3 Trillion Market Faces U.S. Regulatory Limbo as Senate Stalls Clarity Act

Nearly one in six Americans now hold digital assets, and the global crypto market has reached $3 trillion — yet U.S. regulatory clarity remains stalled in the Senate. The Digital Asset Market Clarity Act, which would extend regulatory oversight to digital assets beyond stablecoins, has not advanced despite urgency from Treasury Secretary Scott Bessent, who called the delay a threat to American competitiveness. In a Wall Street Journal op-ed and Senate testimony, Bessent accused holdout crypto executives of nihilism, arguing they prefer no rules at all to the current proposal. He pointed to the prior passage of the GENIUS Act under President Trump — which regulated stablecoins — as proof that progress is possible. But the Clarity Act faces two critical roadblocks. One is a standoff between crypto firms and banks over whether stablecoin holders can earn passive yield, with a bipartisan compromise from Senators Tillis and Alsobrooks allowing only activity-based rewards. That proposal lacks sufficient support. The other obstacle is political: several pro-crypto Senate Democrats refuse to back the bill unless President Trump’s personal crypto ventures are banned — a demand the White House has rejected. With Senate floor time dwindling and the November midterm elections approaching, Bessent warned that failure to act by May could kill momentum for the rest of the year.