Treasury Secretary Scott Bessent proposed closer cooperation among federal regulators on October 27, 2026, offering an update on US crypto regulation after the CLARITY Act stalled in the Senate. Speaking at Ripple’s Swell conference in New York, he outlined a role for Treasury, the SEC and the CFTC in addressing the legislative gap, while raising concerns about crypto businesses losing banking access.
Key takeaways
- The CLARITY Act stalled on a 49–50 Senate procedural vote.
- Bessent proposed joint work by Treasury, the SEC and the CFTC.
- Dollar-linked stablecoins connect crypto adoption with Treasury debt demand.
- Ripple confirmed expanded partnerships and final trust bank charter approval.
CLARITY Act falls short in the Senate
The CLARITY Act failed to advance on September 15, when a Senate procedural vote ended 49–50. The legislation sought to establish clearer rules for digital asset markets but fell short of the support needed to proceed.
That setback left businesses facing uncertainty over compliance requirements. Responding to the vote, Ripple contended that consumers and the industry still need well-defined national rules.
Bessent’s proposal offers an agency-led approach while Congress considers legislation. Regulatory cooperation would serve as an interim measure, rather than a replacement for a law passed by Congress.
Bessent’s update on US crypto regulation centers on agency cooperation
Bessent proposed bringing the US Treasury Department, Securities and Exchange Commission and Commodity Futures Trading Commission into closer coordination. He suggested Treasury could use its existing authority to convene regulators and develop practical safeguards.
SEC and CFTC cooperation
Closer SEC and CFTC cooperation aims to give companies clearer operating expectations. Both agencies oversee parts of financial markets, but their responsibilities can intersect when digital assets are involved.
For businesses, that overlap creates questions about registration, trading, custody and compliance. Bessent described the two regulators as important partners in addressing the gap left by the stalled legislation.
The proposal still operates within a legal boundary: agencies must use powers Congress has already granted them. Agency-led rules do not necessarily offer the same certainty as legislation, which generally provides a more durable foundation.
Banking access is part of the proposal
Bessent further flagged worries that crypto businesses are losing access to traditional banking services. His proposed approach includes clearer regulatory expectations and safeguards against inappropriate financial exclusion.
Banking access therefore sits alongside market oversight in his update on US crypto regulation. The proposal addresses both how digital asset businesses are regulated and their ability to use established financial services.
Stablecoins link digital assets to Treasury demand
Bessent said more than 90% of stablecoins are tied to the US dollar, connecting their use to the currency and to demand for government debt. Issuers often hold US Treasury securities among the reserves backing their tokens.
He argued that wider adoption could create an additional source of federal financing. “I think it’s gonna be an important source of funding for the Treasury,” Bessent said.
His remarks also placed digital assets within the technological competition between the United States and China, alongside artificial intelligence and semiconductor technology. At Swell, where he spoke with Ripple CEO Brad Garlinghouse, Bessent described technological leadership as an increasingly important source of economic influence.
US policymakers are increasingly considering stablecoins as tools for payments and international finance, rather than solely as a regulatory concern. Bessent argued that they could reach users in emerging markets seeking protection from local currency devaluation.
Ripple expands institutional relationships at Swell
Ripple used the conference to announce expanded partnerships with Robinhood and BNY. The announcements accompanied Bessent’s discussion of oversight and access to financial infrastructure.
The company also confirmed that it had received final approval for its national trust bank charter.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.