US Treasury Department Warns: “No Future for Cryptocurrency Without Clarity”

▲ Stablecoin

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

According to investment media FXStreet on April 9 (local time), U.S. Treasury Secretary Scott Bessent emphasized that the full effect of the GENIUS bill can only be realized if Congress passes the CLARITY Act, 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 foundation through the GENIUS bill, more clear and sustainable rules are needed for overall innovation in the digital asset market. He stated, “The potential of GENIUS cannot be realized without the CLARITY Act.”

Currently, regulatory gaps are still considered a limiting factor for innovation in the market. In particular, market participants have operated without clear standards due to overlapping jurisdictions between the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), 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 distinguishing regulatory authorities, establishing registration procedures for trading platforms and intermediaries, and specifically defining whether digital assets constitute securities. It will also enhance investor protection through disclosure and asset custody standards, and include mechanisms to prevent illicit financial flows.

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

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