Treasury Secretary Sees Clarity Act Passage Bringing Stability to Crypto Markets (CBOE: +)

U.S. crypto markets have faced significant volatility, with Bitcoin and Ethereum sharply lower than their all-time highs. Passage of the Clarity Act, a market structure bill aimed at regulating crypto, is expected to bring much-needed stability, according to U.S. Treasury Secretary Scott Bessent. Bessent stated the bill’s enactment would provide "great comfort" amid recent weakness, including a more than 29% monthly drop in Bitcoin. He attributed some of the turbulence to firms blocking the legislation and criticized Coinbase for withdrawing support over a clause limiting yield on stablecoins. A key provision in the bill was cited by Coinbase as a reason for pulling its support. The bill’s prospects hinge on political alignment, with Bessent noting that a Democratic majority in the House following mid-term elections could jeopardize a deal. Predictors on Polymarket currently give the bill a 62% chance of being signed by the end of 2026.