Bessent pressures crypto 'nihilists' on market structure bill

• Key insight: Treasury Secretary Scott Bessent appeared to push crypto companies to line up behind market structure legislation. 
• Expert quote: "Amen, brother," said Sen. Mark Warner, D-Va., of Bessent's crypto comments. 
• What's at stake: Bankers and crypto interests are currently debating the scope of a prohibition of yield on stablecoin in upcoming market structure legislation, which bankers fear could lead to a fleeing of deposits if not tight enough. 

WASHINGTON — Treasury Secretary Scott Bessent pushed the crypto industry to back digital asset market structure legislation, as banks and the crypto industry are mired in a debate over a key provision on yield. 

Last month, Coinbase withdrew its support for market structure legislation after bank groups pushed for language that would limit third parties and other partners from offering yield-like products to stablecoin holders. After a markup in the Senate Banking Committee was canceled last month over the issue, bank groups and crypto industry participants have met in a White House meeting, although negotiations remain deadlocked. 

"There seems to be a nihilist group in the industry who prefers no regulation over this very good regulation," Bessent said at the Senate Banking Committee on Thursday. 

"Amen, brother," said Sen. Mark Warner, D-Va. "So weigh in."

"I do," Bessent said. "Early and often." 

Bessent's comments put additional pressure on the crypto industry to find a compromise with bankers on the issue. 

"We view this as Bessent pushing crypto interests to line up behind the Senate crypto market structure bill as he recognizes that it is probably not possible to advance the legislation if the industry is divided," Jaret Seiberg, an analyst at TD Cowen, said in a note. 

Thursday's testimony in front of the Senate Banking Committee was Bessent's last of two days in front of Congress. He told the House Financial Services Committee yesterday that he plans to scale down risk and capital requirements for the smallest banks, but much of his appearance was spent sparring with Democratic lawmakers. 

Bessent also sparred with Senate Banking Committee ranking member Elizabeth Warren, D-Mass., but the exchange was considerably more muted than during Wednesday's testimony. Warren pressed Bessent on affordability issues, a topic expected to dominate much of the 2026 midterms elections. 

"If you're just going to insult people by denying the facts that are out there and tell people they're doing great when they're struggling, I think that's just another way to say [that] you don't have a plan to bring down these prices," Warren said. "You're not willing to admit the failures of the Trump Administration." 

Bessent also continued to press for deposit insurance changes, and championed President Donald Trump's credit card one-year 10% cap, despite some pushback from the banking industry on both issues. 

Sens. Bill Hagerty, R-Tenn., and Angela Alsobrooks, D-Md., cosponsors of the deposit insurance bill that would raise the insurance limit for noninterest bearing accounts to $10 million, both asked Bessent about his support for their legislation. 

"I would encourage your colleagues to pass it," Bessent said. "Anything I can do to advocate for it, please let me know." 

In response to a question from Sen. Jack Reed, D-R.I., Bessent explicitly backed President Donald Trump's proposal for legislation that would limit credit card interest rates to 10% for one year. 

"I wholeheartedly support President Trump's policy," Bessent said. 

This is in contrast to when Bessent sidestepped the issue in yesterday's testimony in front of the House Financial Services Committee. 

"The President is interested in affordability for the American people, and I think his view is that banks have done very well, and that by capping the rate for one year, it would give the American people the chance to recover," Bessent said on Wednesday.