Bessent Backs Protections for Regional Banks in CLARITY Act
- —Bessent is ready to use "circuit breaker" powers if deposits flow from regional banks into stablecoins
- —The final text of the CLARITY Act includes a mechanism for Treasury intervention amid significant deposit outflows
- —Bessent called the CLARITY Act necessary for the US to win global technological competition
- —He does not see stablecoins as a threat to banks but promises protection in case of real damage
Why it matters: The Treasury's position reduces the risk of harsh restrictions on stablecoins and raises the chances of the CLARITY Act passing.
Source: Blockmedia