Bitcoin Magazine

U.S. Treasury Says U.S. ‘Will Win in the Digital Asset Stack’ as Clarity Act Stalls

U.S. Treasury Secretary Scott Bessent said Tuesday that American leadership in digital assets could reinforce the dollar’s global position, even as Congress has stalled on the market-structure legislation meant to govern them.

Speaking at Ripple’s Swell conference in New York with CEO Brad Garlinghouse, Bessent argued that the foundations of reserve-currency power are shifting. For much of modern history, he said, the dollar’s dominance rested largely on military strength. 

“We will keep our military umbrella, but increasingly, it becomes a technological umbrella,” he said. 

He grouped digital assets with artificial intelligence and semiconductors as areas where the United States and China are competing to build dominant infrastructure, and suggested the financial rails countries choose will shape the dollar’s reach.

The most concrete link he drew runs through stablecoins, dollar-pegged tokens whose issuers typically hold reserves that include U.S. Treasury securities. Bessent said stablecoins could give people in countries with high inflation or volatile currencies easier access to dollars. 

CoinGecko data puts the share of stablecoins denominated in dollars above 98%, with Tether’s USDT and Circle’s USDC the largest. Bessent himself put the figure above 90%. The exact number differs, but the dollar clearly dominates the category.

NEW: Secretary Scott Bessent says the Treasury is moving on crypto regulation with or without Congress

He says they will “bring the SEC and CFTC together to close the gaps through regulation.” pic.twitter.com/JnsT3oxVEn

— Bitcoin Magazine (@BitcoinMagazine) October 28, 2026

Bessent has also argued that stablecoin reserves could increase demand for Treasury debt. Last year he suggested stablecoins could generate $2 trillion in short-term demand for Treasuries and bills. That projection depends on how quickly stablecoin supply grows, what reserve rules apply, and how issuers choose to invest.

Bitcoin traded around $80,000 to $81,000 this week ahead of the Federal Reserve decision. Bitcoin advocates have long argued that a neutral, non-issuer asset offers something different from dollar-pegged tokens.

Broader crypto legislation trends

The regulatory backdrop is more uncertain. The Comptroller of the Currency has finalized its rule implementing the GENIUS Act, which sets requirements for payment stablecoin issuers. The federal framework takes effect January 18, 2027. 

The broader CLARITY Act, which would establish market-structure rules for digital assets, failed a Senate procedural vote on September 15, 49 to 50, short of the 60 votes needed. Disputes included ethics provisions related to federal officials’ crypto interests and stablecoin yield. 

Banks and the White House clashed over those yield terms.

Treasury Bessent’s willingness to work around Clarity Act failure

Bessent called the setback disappointing. He said Treasury could work with the Securities and Exchange Commission and the Commodity Futures Trading Commission to address regulatory gaps. “At Treasury, we have a lot of convening powers,” he said, describing the agencies as “great partners.” 

He also said regulators could set guardrails to prevent banks from cutting off crypto firms, a practice known as debanking. 

“I think we can set up regulatory best practices, guardrails that will prevent that from happening again,” he said.

Those remarks did not set out a formal plan, working group, or timeline. Agency action can clarify rules within existing authority, but it lacks the permanence of an act of Congress, and it can be reversed by a future administration. 

Next week’s midterm elections could further stall the CLARITY Act, according to TD Cowen.

This post U.S. Treasury Says U.S. ‘Will Win in the Digital Asset Stack’ as Clarity Act Stalls first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Crypto-linked political groups have spent roughly $176 million across more than 100 U.S. midterm races, according to a Reuters review of campaign-finance filings through October 20. Fairshake and its affiliates account for about $150.8 million. The spending may help elect…

Bitcoin Magazine

Next Week’s Midterms Could Stall the CLARITY Act and Test Crypto’s Political Clout: TD Cowen 

Washington’s crypto agenda hinges on next week’s midterm elections, according to a new policy note from TD Cowen, shared with Bitcoin Magazine. 

Analyst Jaret Seiberg warned in the note that the probable results could make it difficult for Congress to pass the CLARITY Act over the next two years. The bill would set the rules for bitcoin and other digital assets, and the industry has spent $176 million on more than 100 races to shape the outcome. Here are a couple of the results:

A Democratic sweep is the most probable outcome

Prediction markets cited in the report give Democrats a 90% chance of winning the House and a 62% chance of winning the Senate. TD Cowen considers this the most negative scenario for bitcoin and the broader crypto sector. Under it, Sen. Elizabeth Warren would become Senate Banking Committee chair. Seiberg describes her as a crypto skeptic who has led opposition to the CLARITY Act, and he expects her to conduct tough oversight of federal regulators.

Warren cannot stop regulators from adopting policies that favor the industry. Seiberg expects President Trump to remain favorable toward crypto, so he would veto any bill that limits his regulators’ authority. Democrats would lack the votes to override him. As a result, policy changes are expected to focus on tokenization, perpetual futures, and stablecoins.

A split Congress with Republicans holding the Senate

The second scenario keeps Democrats in control of the House while key Senate races stay close enough to break for Republicans. Sen. Tim Scott would keep his Banking Committee gavel. TD Cowen views this outcome as a better result for bitcoin, because Rep. Maxine Waters could trade support for parts of the market structure bill in exchange for investor protections and action on her other priorities. 

Adverse legislation would be blocked from reaching the president’s desk.

A Republican sweep is the least likely but best outcome for crypto

Kalshi gives Republicans a 10% chance to keep the House and a 35% chance to keep the Senate. TD Cowen calls this the best path for crypto policy, though the margins matter. A wider Senate majority would improve the odds that leaders advance the CLARITY Act in 2027 or 2028, and they could attempt a revival during the lame-duck session. 

A narrow majority, by contrast, would leave the bill stalled, as Democrats keep pushing ethics provisions that the president opposes. When the Senate blocked the bill, Bitcoin-related stocks tumbled.

For background, the CLARITY Act would create federal rules for digital assets. The House passed its version in July 2025 by a 294-134 vote. The Senate Banking Committee approved its own version in May 2026 by a 15-9 vote, with two Democrats joining Republicans.

On the Senate floor, a cloture vote failed 49-50 on September 15. Democrats want ethics language that would bar senior officials, including the president, from profiting from crypto ventures. Republicans and industry groups resist those limits. Stablecoin yield is another dispute. Each side says the other is blocking progress, and the bill is stuck.

This post Next Week’s Midterms Could Stall the CLARITY Act and Test Crypto’s Political Clout: TD Cowen  first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

Senator Cynthia Lummis accuses Democrats of blocking tougher crypto penalties and custody rules under the CLARITY Act after its failed Senate vote.

A new Senate tax proposal has joined a House bill already through committee. The measures address payments, fees and trading rules, but they have their own route to enactment and cannot settle market oversight. The Senate could not open debate…

Bitcoin Magazine

CFTC Proposes New Crypto Oversight Rules

The U.S. Commodity Futures Trading Commission has proposed new rules to regulate digital asset transactions and markets. 

In a Monday release, the agency said that the proposed rules would ​allow U.S. crypto exchanges to opt into a federal regulatory regime. 

Despite lawmakers blocking the Clarity Act last month, the CFTC and Securities and Exchange Commission have pressed ahead with proposing rules to regulate the digital asset industry. 

“Today’s action is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world,” Chairman Mike Selig said. 

JUST IN: CFTC proposes rules to regulate U.S. crypto markets.

"Today’s action is just the beginning…America can lead the next generation of financial technology without repeating the mistakes of the last one." pic.twitter.com/jTL52Aqhbi

— Bitcoin Magazine (@BitcoinMagazine) October 5, 2026

He added: “The Commission’s announcement begins our process of new rulemakings grounded in the CEA’s purpose and President Trump’s directive to propose a federal crypto asset regulatory market structure using the CFTC’s existing statutory authorities.”

If approved, the new rules would allow crypto exchanges offering the leveraged trades to register with the regulator. 

The Clarity Act wants to formally divide oversight between regulators, distinguishing which digital assets are securities, commodities or stablecoins. 

But the bill stalled and stumbled this year as the banking lobby had issues with crypto companies paying customers stablecoin rewards and some lawmakers — mostly Democrats — were concerned about the ethics side of the legislation. 

Regulators are drafting rules that the crypto industry has long called for regardless. 

CFTC Chair Selig, formerly chief counsel at the SEC’s Crypto Task Force, last month said that the regulator was preparing for the transition of markets moving “24-7, on-chain.” 

The SEC — also run by a pro-crypto regulator — went ahead and in September approved tokenized stocks trading. 

That came after it also proposed its own framework for crypto asset offerings in August, pressing ahead while the landmark legislation stalled.   

U.S. President Donald Trump campaigned on a ticket to help the digital asset industry and since taking office has signed pro-crypto legislation and executive orders. 

Trump in August urged lawmakers to get the Clarity Act over the line, calling the proposed legislation “very powerful.” 

The CFTC’s preliminary rulemaking notice is open for public comment for 60 days after it’s published in the Federal Register. After that, the agency will review the feedback and decide whether to issue a formal proposed rule, which would go through another comment period before any final rule is adopted.

This post CFTC Proposes New Crypto Oversight Rules first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

SEC Proposes New Rules On Crypto Custody 

The U.S. Securities and Exchange Commission has proposed new rules to update how investment advisers and regulated funds hold assets, with a big focus on crypto.

In a statement Thursday, the Wall Street watchdog said it would allow advisers and funds acting through their advisers, to hold client crypto themselves, but only if no permitted custodian is available. 

Regulators are pushing ahead with rulemaking for the digital asset space despite lawmakers blocking the Clarity Act last month. 

JUST IN: SEC Chairman Paul Atkins releases a statement to address the custody of crypto assets.

"Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class" pic.twitter.com/SbLR2HAeW1

— Bitcoin Magazine (@BitcoinMagazine) October 1, 2026

The long-awaited legislation — a framework for distinguishing between digital assets that are securities, commodities or payment stablecoins — didn’t get the votes needed to advance. 

“Since the advent of Bitcoin in 2008, the crypto asset market has grown from a niche curiosity into a multi-trillion-dollar asset class to which investors actively seek exposure. Unfortunately, our rules and regulations have not kept pace,” SEC Chairman Paul S. Atkins said in a statement.

“To that end, today’s proposal would provide a clear regulatory framework for the custody of crypto assets, giving investment advisers and funds a compliant pathway where none existed before — and replacing the grey of uncertainty created by custody rules crafted for a bygone era.”

The regulator said in its proposed rules that records kept on a blockchain could count toward compliance, subject to conditions. 

It added that it would allow use of state trust companies as custodians for client and regulated fund crypto assets, subject to conditions.

Lawmakers blocked the Clarity Act in a procedural vote last month. Regulators had said before the vote that regardless of whether the landmark legislation passed, they’d still start regulating the crypto industry.  

The SEC before the vote sent a proposal to the White House aiming to “clarify the framework for the custody of crypto assets” for investment advisers and companies. 

Pro-crypto Atkins said he would still work to make the U.S. the “crypto capital of the world” regardless of the landmark legislation getting through. 

This post SEC Proposes New Rules On Crypto Custody  first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.

Bitcoin Magazine

Republican Senator Steve Daines Releases Text of Proposed Crypto Tax Plan

Republican senator Steve Daines has released a new proposal to update the tax code with regards to digital assets. 

The senator for Montana released the Aligning Digital Assets with Principles of Taxation Act — or ADAPT Act — sponsored by Sen. Daines with Sens. Lummis, Moreno, and Tim Scott on Wednesday, aiming to draft rules for assets like stablecoins. 

Lawmakers and regulators are fast trying to draft rules for digital assets since U.S. President Trump took office on a pro-crypto platform. The Clarity Act collapsed in the Senate last month; one day after, the House Ways and Means Committee overwhelmingly approved legislation that would revamp the tax treatment of cryptocurrency. 

“Digital assets have moved into the mainstream, but the tax code hasn’t kept up,” Senator Daines wrote on X. 

Digital assets have moved into the mainstream, but the tax code hasn’t kept up. My bill would create clearer rules for stablecoins, network fees, staking and lending—while extending familiar tax rules like wash sales and constructive sales to digital assets. pic.twitter.com/W6nXSsTgvX

— Steve Daines (@SteveDaines) September 30, 2026

“My bill would create clearer rules for stablecoins, network fees, staking and lending — while extending familiar tax rules like wash sales and constructive sales to digital assets.”

The bill proposes that everyday users of stablecoins get tax relief for everyday uses. Spending a qualifying dollar stablecoin on goods or services wouldn’t trigger gain or loss, and brokers wouldn’t have to report those transactions. 

To qualify, the stablecoin must be issued under the GENIUS Act framework, appear on a quarterly Treasury list of coins that have held within 3% of $1.00, and have been bought by you within 3% of $1.00. 

Separately, network or gas fees paid in crypto would be tax-free dispositions as long as the fees for a given transaction total $10 or less, with anti-structuring rules. 

The bill would also apply wash sale rules to crypto for the first time. The rules bar investors from claiming a tax loss if they sell an asset and buy it back within 30 days. Stock investors have long been bound by them, while crypto traders could sell at a loss and immediately rebuy. 

The rules would cover traded digital assets other than qualified stablecoins. Assets bought before the bill becomes law would be grandfathered, and staking rewards, mining rewards and regular recurring purchases would be exempt. 

Tokenized versions of stocks would count as “substantially identical” to the underlying shares.

The ADAPT Act now heads to committee, which would need to approve it before it could reach a vote by the full Senate.

This post Republican Senator Steve Daines Releases Text of Proposed Crypto Tax Plan first appeared on Bitcoin Magazine and is written by Mathew Di Salvo.