Bessent urges Congress to pass crypto regulation bill

U.S. Representative Michael Bessent called on Congress to urgently pass comprehensive cryptocurrency regulation legislation during a financial services committee hearing in Washington, D.C., on Tuesday, citing the need to establish clear rules for the rapidly growing digital asset industry and protect American consumers from market volatility and fraud. The Republican congressman from New York argued that the current regulatory patchwork—where different agencies apply existing securities, commodities, and money transmission laws to crypto—creates uncertainty that stifles innovation and pushes business overseas to jurisdictions with clearer frameworks. Bessent emphasized that the lack of federal legislation leaves investors vulnerable and prevents legitimate U.S. companies from competing globally. He pointed to recent high-profile crypto exchange failures and enforcement actions as evidence that the status quo is unsustainable. The congressman specifically referenced bipartisan discussion drafts circulating in both the House and Senate that aim to classify which digital assets are securities versus commodities, create new disclosure requirements, and establish oversight responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Industry advocates have long argued that regulatory clarity is essential for mainstream adoption and institutional investment. However, legislative progress has been slow due to technical complexity and differing views among lawmakers, regulators, and the industry itself on how to balance innovation with consumer protection. Bessent's appeal adds to growing political pressure for action, particularly as other major economies like the European Union advance their own comprehensive crypto regulatory regimes.