Bessent: If the Democrats take control of the House after the midterm elections, the prospects for passing the CLARITY Act will be completely shattered.

On February 14, U.S. Secretary of the Treasury Scott Bessent stated that, in the context of the current prolonged market downturn, pushing for the passage of the CLARITY Act could help improve market sentiment. Bessent said in an interview with CNBC on Friday that concerns among crypto industry executives have hindered the progress of the CLARITY Act, negatively impacting the industry. He stated, “During this historic sell-off, I believe that if we can clarify the direction of the CLARITY Act, it will greatly boost market confidence, and we can move forward based on that.” However, Bessent added, “If the Democrats take control of the House, which is not what I hope for, the prospects for reaching an agreement will be completely shattered.” Bessent noted that, considering the potential shift in power due to the 2026 midterm elections, it is crucial to push the bill through “as soon as possible” and have it signed by President Trump before the U.S. spring (late March to late June). According to data from the U.S. House of Representatives, Republicans currently hold a narrow majority with 218 seats to 214 seats. On Polymarket, 47% of traders believe that the 2026 midterm elections will result in a “divided Congress,” with each party controlling one chamber.