A senior White House digital currency advisor is urging Congress to act quickly on a bill to reform the crypto market. He says that with strong support from the pro-crypto administration, now is the best time to set fair rules before the opportunity passes. He continues to state that delaying action could lead to stricter regulations in the future.
Patrick Witt, executive director of the President’s Council of Advisors on Digital Assets, shared his thoughts publicly on X as Congress continues to debate the CLARITY Act, which proposes clearer terms for crypto across America.
White House advisor urges Congress to pass the crypto bill quickly
Patrick Witt expects a comprehensive crypto market structure bill and says the debate in Congress has shifted from asking if it will happen to when it will finally be passed.
In the absence of strong federal regulation, an industry valued in trillions may soon find itself operating in the dark. As digital currencies become more entwined with the banking system and investing, it is increasingly perilous to delay regulation.
However, waiting for the right time to act, as argued by Witt, could be counterproductive, especially given that the history of finance shows that major regulatory frameworks tend to be developed in the wake of crises rather than in periods of calm.
According to him, “If Congress doesn’t act now and something big happens in the future, like another market shock or the collapse of the crypto market, Congress will likely face pressure to act quickly and pass punitive legislation, just like they did with the Dodd-Frank bill after the financial shock of 2008.
And that will mean that Congress will pass legislation based on fear and political urgency, without debate, and will likely lock in regulatory frameworks that will stifle innovation and put the United States at a disadvantage in the global digital asset market.”
The current political environment, he says, offers a rare opportunity to shape effective policy. Witt pointed to a pro-crypto president, control of Congress, and regulators at the Securities and Exchange Commission and the Commodity Futures Trading Commission who are seen as open to working with the industry.
He stressed that this alignment rarely occurs and that clarity in regulation becomes more achievable under such conditions. Witt says waiting too long risks disruption if leadership shifts later.
Industry concerns slow the bill as lawmakers look for a compromise.
Progress on the crypto market structure bill has been held up in the past few weeks due to points of contention over key details, and the bill has been stalled at a time when proponents would have liked to see it move relatively quickly in Congress.
Despite the bill’s intended aim of establishing clarity regarding the regulation of digital markets in the United States, it has been met with opposition over specific language rather than its underlying aim.
The most serious blow to the bill came when Coinbase, the largest U.S. cryptocurrency exchange and a strong supporter of the current administration, withdrew its support for the draft bill.
Coinbase expressed concerns about several issues in the draft bill, which it felt would negatively impact the creation of tokenized equities, the privacy of decentralized finance, and the way issuers of stablecoins provide yield to clients.
This move by Coinbase altered the bill’s timeline, leading to the postponement of the scheduled hearing before the Senate Banking Committee, despite significant progress being expected.
As far as Witt is concerned, he understood the discomfort but said there must be a compromise for there to be expected progress. He emphasizes that there must be give-and-take to achieve the 60 votes.
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Source: https://www.cryptopolitan.com/witt-calls-for-urgent-crypto-bill-passage/
