U.S. Treasury Secretary Warns: CLARITY Act Prospects Dim if Democrats Take House

Bessent Warns of CLARITY Act Uncertainty

U.S. Treasury Secretary Scott Bessent recently told CNBC that amid the ongoing crypto market slump, progress on the CLARITY Act could help restore investor confidence.

He noted that concerns from industry executives have stalled the bill, which is currently harming the sector in this fragile market environment.

Act Now or Lose It Forever

Bessent emphasized that if Democrats gain control of the House in the midterm elections, the CLARITY Act will have no chance of passing. He stressed that the bill must move quickly and reach the president’s desk before the U.S. spring (late March to late June) to avoid legislative gridlock.

House Majority Hangs in Balance

Currently, Republicans hold only a narrow majority in the House (218 to 214 seats). This slim margin means the window for passing the bill is extremely tight, and any shift in party control could derail the entire process.

Market Predicts a Split Congress

Data from Polymarket shows that 47% of traders believe the 2026 midterms will result in a divided Congress, with each party controlling one chamber.