As U.S. Treasury Secretary Scott Bessent (스콧 베센트) strongly argues for the need for a cryptocurrency regulatory bill, the mood is also turning toward an escalation in conflict with crypto exchange Coinbase.

On Feb. 6 local time, blockchain media outlet CoinPost reported that Bessent told a Senate Banking Committee hearing that if the cryptocurrency market structure bill, the CLARITY Act, does not pass, regulating cryptocurrencies in the United States is impossible. He said some forces in the industry appear to prefer having no regulation, but called it a very good bill. He strongly stressed that if the CLARITY Act does not pass, market participants who do not want it would have to leave for El Salvador.

Bessent's remarks came as Coinbase had abruptly withdrawn its support for the bill several weeks earlier, leading to the collapse of a key vote by the Senate Banking Committee. At the time, Coinbase CEO Brian Armstrong (브라이언 암스트롱) argued that if a bill does not help, it is better not to have one. The White House strongly criticized the stance and warned that it is a fantasy to think it can operate indefinitely without a comprehensive regulatory framework.

Coinbase later returned to negotiations but is maintaining its position that interest, or returns, should be allowed for stablecoin holders. The banking industry, meanwhile, objects that the demand could cause deposit outflows, especially from regional banks, and make the U.S. banking system unstable. Bessent also stressed that he is a supporter of small banks and that deposit volatility is highly undesirable. He said deposit stability makes community, agriculture, small business and real estate lending possible.

At another hearing the same day, Democratic Senator Mark Warner (마크 워너) voiced dissatisfaction with the deadlock over the bill, saying it felt like being in crypto hell. He said crypto is already established and only needs clear rules, but pointed out that rules should not leave major loopholes or weaken current enforcement and prosecutorial authority. Democratic Senator Angela Alsobrooks (앤젤라 앨소브룩스) also said it would be possible to craft a bipartisan compromise that protects both innovation and regional banks.

Meanwhile, the Senate Agriculture Committee passed a bill last month on oversight for the Commodity Futures Trading Commission, or CFTC, without Democratic support. The Senate Banking Committee had planned to hold a hearing in January to revise and vote on the bill, but the meeting was delayed after Coinbase withdrew support over issues including stablecoin interest. A date to resume the hearing has not been set.

As disputes around the market structure bill spread to the question of allowing stablecoin interest, the clash between the financial sector and the crypto industry is expected to continue for the time being. The longer the regulatory vacuum lasts, the more uncertainty could grow in the business environment. Whether Senate discussions resume and a compromise is reached is expected to be a watershed for future legislation.