White House Pushes for Fast Crypto Deal as Senate Window Narrows and $1B Liquidations Rock Markets

The White House is urging U.S. lawmakers to move quickly on legislation to reform the crypto market structure as political timelines tighten and digital asset markets face renewed volatility.

With the Senate struggling to secure bipartisan support and more than $1 billion in recent crypto liquidations, officials say the window for passing a workable regulatory framework may be closing.

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, has warned that expecting the crypto industry to operate without clear rules is unrealistic. He argues that some form of legislation is “inevitable” and that delays could leave the sector exposed to harsher policies in the future.

White House Presses for Action on Crypto Rules

The proposed Senate bill would define how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) oversee crypto markets, including stablecoins and decentralized finance protocols. However, disagreements over key provisions have slowed progress.

Both the Senate Banking and Agriculture Committees recently postponed markups as lawmakers worked to resolve disputes and gather enough support to advance the bill. Witt has been blunt in his message to the industry: accept compromise now or risk facing a less favorable outcome later.

He criticized Coinbase CEO Brian Armstrong for withdrawing support for the current version of the bill, after Armstrong said the company would “rather have no bill than a bad bill.”

Midterm Elections Add Pressure

The push for speed is also tied to the November U.S. midterm elections, which could reshape Congress. All House seats and 35 Senate seats are up for grabs, and polling and prediction markets suggest Democrats have a strong chance of flipping the House.

A divided Congress would likely slow or stall crypto legislation altogether. Witt has cautioned that the political alignment needed to pass a market structure bill may not be in place after the elections, making the coming months critical for any deal.

The policy debate comes as markets reel from a sharp deleveraging event. Today, more than 182,000 traders were liquidated in a single day, with total losses of over $1.08 billion. Most of the damage came from long positions in Bitcoin and Ethereum, as falling prices triggered cascading margin calls across major exchanges.

Bitcoin alone saw over $427 million in long liquidations, while Ethereum accounted for roughly $374 million. Technical indicators show many altcoins trading with RSI levels below 50, suggesting continued selling pressure.

Rising Japanese bond yields and renewed global risk-off sentiment have also tightened liquidity, prompting investors to shift away from volatile assets like crypto. Although Bitcoin later stabilized near $90,000, analysts say the recent rebound looks more like a pause after forced selling than a clear return to bullish momentum.

Cover image from ChatGPT, BTCUSD chart on Tradingview