Patrick Witt, the White House’s executive director of the President’s Crypto Council, is calling for urgent action on crypto market structure legislation, warning that delays could leave the industry exposed to far harsher rules down the line.
In a series of posts on X, Witt pushed back against Coinbase CEO Brian Armstrong’s view that “no bill is better than a bad bill.” According to Witt, that stance is only possible because Donald Trump’s 2024 election win brought in a pro-crypto administration.
“It’s a privilege to say that,” Witt argued, suggesting the political winds could easily shift.
He warned that it’s unrealistic for a multi-trillion-dollar industry to continue operating without a clear regulatory framework. If lawmakers fail to act now, he said, a future Democratic Congress could step in after a crisis and impose strict, punitive rules — similar to how Dodd-Frank reshaped financial regulation after 2008.
“You might not love every part of the CLARITY Act,” Witt wrote, “but I can guarantee you’ll hate a future Dem version even more.”
Bill Stalls as Industry and Lawmakers Clash Over Details
Witt’s comments come as momentum behind the bill has slowed, largely because of disagreements over specific provisions.
Coinbase recently withdrew its support for the current draft, calling parts of the legislation “problematic” and warning they could hurt innovation. In a post last week, Armstrong made the company’s position clear.
“This version would be materially worse than the current status quo,” he wrote. “We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft.”
Those disagreements have had real consequences in Congress. The Senate Banking Committee postponed its planned markup hearing, with Chairman Tim Scott saying no new date has been set.
The delay once again leaves the crypto industry in limbo — waiting for clear rules that could replace years of regulation by enforcement.
Meanwhile, Senate Agriculture Committee Chairman John Boozman said lawmakers need more time to work through the remaining policy details and build broader support across Congress.
For now, the standoff highlights a growing divide: whether it’s better to accept imperfect rules today, or risk far tougher ones tomorrow.
