U.S. Treasury Secretary Scott Bessent criticized crypto firms opposing a key Senate market structure bill, calling their stance “nihilistic” and telling opponents to “move to El Salvador.” His testimony before the Senate Banking Committee highlighted a clash with Coinbase, which withdrew support over stablecoin yield provisions. Bessent also echoed banking industry concerns that such yields could cause deposit flight from community banks.
U.S. Treasury Secretary Scott Bessent stated it is impossible to proceed with crypto regulation without the Senate’s market structure bill. “There seems to be a nihilist group in the industry who would prefer no regulation over this very good regulation,” he told the Senate Banking Committee.
He directed his criticism at industry players like Coinbase, which recently pulled its support for the legislation. The company’s CEO, Brian Armstrong, had stated they would “rather have no bill than a bad bill,” a position the White House later rebuked as fantasy.
The core dispute centers on provisions allowing stablecoins to generate yield for holders. Banking lobbyists argue this could destabilize the U.S. banking system by causing deposit flight. Responding to Senator Cynthia Lummis, Bessent acknowledged these concerns about community banks.
“I’ve been a champion of these small banks, and deposit volatility is very undesirable,” the Treasury Secretary said. He emphasized the need for stability so these institutions can continue lending to local communities and businesses.
Senator Mark Warner, a Democrat involved in negotiations, expressed frustration during the hearing. “I feel like I’m in crypto hell,” Warner remarked, to which Bessent laughed but did not fully reply.
