U.S. Treasury Warns, "No Future for Cryptocurrency Without Clarity"

▲ Stablecoin

The U.S. Treasury Department issued a warning, stating that the success of the stablecoin regulation bill, GENIUS, ultimately depends on the passage of the U.S. cryptocurrency market structure bill, the CLARITY Act.

According to investment specialized media FXStreet on April 9 (local time), U.S. Treasury Secretary Scott Bessent emphasized that the CLARITY Act must be passed by Congress for the GENIUS bill's effects to be fully realized, calling it “a necessary next step.”

In an op-ed for the Wall Street Journal, Bessent pointed out that while stablecoins have secured a certain level of regulatory framework through the GENIUS bill, more clear and sustainable rules are needed for innovation across the entire digital asset market. He stated, “The potential of GENIUS cannot be realized without the CLARITY Act.”

Currently, the regulatory vacuum is still considered a factor hindering innovation in the market. In particular, due to overlapping jurisdictions between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), market participants have been operating without clear standards, leading to a trend of some cryptocurrency companies relocating overseas to places like Abu Dhabi and Singapore.

The CLARITY Act aims to resolve these issues by clearly delineating regulatory authority, establishing registration procedures for trading platforms and intermediaries, and specifically defining whether digital assets constitute securities. It will also strengthen investor protection through disclosure and asset custody standards and will include mechanisms to prevent illicit money flows.

Meanwhile, the U.S. Treasury Department proposed regulations to mandate stablecoin issuers to establish Anti-Money Laundering (AML) and Counter-Financing of Terrorism (CFT) frameworks for the implementation of the GENIUS bill. These regulations include risk identification, assessment, and response systems and will undergo a 60-day public comment period in line with the January 2027 implementation schedule. U.S. Securities and Exchange Commission (SEC) Chairman Paul Atkins also agreed on the need for comprehensive market structure legislation and urged faster legislative action.

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