Compass Investments

– In this post: Scott Beckerman called on Congress to pass the Clarity Act without delay.

He noted that cryptoassets have become mainstream and the market is estimated to be worth $2-3 trillion.

In his opinion, overly lenient regulation in the U.S. has forced crypto firms and developers to move to places like Singapore and Abu Dhabi.

Former Treasury Department head under Trump, Scott Beckerman, in an op-ed for the Wall Street Journal, urged Congress to approve the Clarity Act, emphasizing that the United States can no longer delay while the digital money market continues to grow.

Scott warned lawmakers that this situation is not guaranteed to last. Over the past year, the total value of the global digital asset market has fluctuated between $2 trillion and $3 trillion. Nearly one in six people in the United States owns digital assets in one form or another. Major financial institutions have already launched or applied for approval of cryptocurrency-related products, Scott states.

Scott mentioned that the government has already taken one important step: the Genius Act, which Trump signed into law last year. However, he said the entire cryptocurrency market is still in a legal gray area. Scott pointed out that there is still no clear regulation for crypto markets in the U.S., with the exception of stablecoins.

He then criticized the Securities and Exchange Commission (SEC) under the Biden administration, which he said was headed by Gary Gensler, the crypto industry’s chief opponent, who Scott said was providing information that was duplicative or even contradictory.

As a result, developers, stock exchanges and investors did not have a clear understanding of the applicable regulations, the distribution of powers and how companies should operate.

In his post on Platform X, Scott also stated: The Senate’s time is limited, and the moment for action is now.

Scott believes that the solution is a comprehensive law, not an exacerbation of ambiguity. The Clarity Act should more clearly delineate the powers of regulators, establish registration procedures for trading platforms and intermediaries, and define when cryptocurrency is considered a security and when it is not.

He also noted that the GENIUS Act will not solve all problems, especially after stablecoins have gained a legal framework. According to Scott, the next phase of the fight will involve the underlying infrastructure, namely tokenized assets, decentralized exchanges and new methods of raising capital for businesses.

The key question, he said, is whether those activities, the associated jobs and tax revenue will be created in the U.S. or elsewhere.

Scott concluded by emphasizing that the bill would also protect software developers to ensure that the technology behind digital finance remains open, secure and developed in the United States. He added: Congress will ensure that the next generation of financial innovation is built on American foundations, supported by American structures and denominated in American dollars.