- White House urges crypto firms to back an imperfect bill to secure fast regulatory clarity.
- Advisor warns delays risk future punitive laws and uncertainty for U.S. crypto markets.
- Coinbase objections stall progress, but talks continue to fix stablecoin yield disputes.
The White House has urged the crypto industry to back an imperfect market structure bill to secure regulatory clarity. Advisors warned that delays could expose the sector to uncertainty and future political backlash.
Trump’s crypto advisory council said the current political window may not last long. It argued that waiting for a flawless framework risks losing momentum under a crypto-friendly administration.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, delivered the warning this week. He called for the quick passage of the crypto market structure bill before divisions stall progress.
Witt said compromise remains essential to move the legislation through Congress. He stressed that disagreements over details should not derail the broader goal of regulatory certainty. He shared the message on social media while responding to rising industry tensions. Those tensions intensified after Coinbase withdrew support for the current draft bill.
Push for speed amid political risk
Witt said the United States will eventually pass a crypto market structure bill. However, he framed timing as the critical factor facing lawmakers and the industry. He warned that delaying action could invite stricter legislation under a future administration. Witt pointed to post-crisis laws like Dodd-Frank as a cautionary example.
He argued that today’s environment offers rare alignment between regulators and the White House. According to Witt, failing to act now could reverse recent progress on crypto policy. The comments followed public remarks from Coinbase CEO Brian Armstrong. Armstrong referenced the idea that no bill remains better than a bad bill.
Witt countered that stance by urging pragmatic decision-making. He said the industry should not let perfection block achievable reforms. He also stressed the need to secure 60 Senate votes. That threshold requires concessions across party lines, he added.
Industry divisions slow momentum
Coinbase withdrew support over language affecting tokenized equities, DeFi privacy, and stablecoin yield. The exchange remains one of the largest crypto donors aligned with the Trump administration. Its withdrawal triggered an immediate legislative impact. The Senate Banking Committee postponed its expected markup hearing.
Lawmakers had earlier signaled fast movement toward a final vote. However, disagreements forced a pause in the process. Despite the setback, Coinbase said it still supports improving the bill. Armstrong said the company wants changes rather than abandonment.
He plans discussions with bank executives at the World Economic Forum in Davos. Those talks aim to find a compromise on stablecoin yield provisions. U.S. banks strongly oppose allowing crypto firms to offer yield-bearing stablecoins. That opposition has become a key sticking point in negotiations.
Related: Senate Crypto Bill Delayed as Lummis Says Passage Is “Closer Than Ever”
Meanwhile, Witt continued to push urgency. He warned that a future Democratic-led Congress could draft harsher crypto laws. He said industry participants may regret rejecting today’s proposal later. Witt urged continued dialogue without stalling legislative progress.
Lawmakers across committees still view the bill as essential. They see it as a solution to long-standing regulatory confusion. The bill aims to clarify roles between the CFTC and the SEC. Jurisdictional overlap has challenged crypto firms for years.
The Senate Agriculture Committee plans a markup hearing on Jan. 27. The Banking Committee has not announced a new date yet. Despite delays, talks continue among lawmakers, regulators, and industry leaders. The White House hopes compromise will deliver clarity before political conditions change.
