The White House has warned that delays to a U.S. crypto market structure bill could cost the industry a rare legislative window under the current pro-crypto administration. This message came as Senate action stalled following industry pushback and committee disagreements.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said the bill’s passage now depends on timing rather than political will. He argued that momentum could fade if lawmakers fail to act soon.
Witt said future legislation could arrive under less favourable conditions if Congress misses the current opportunity. He emphasized that later efforts could mirror crisis-driven reforms like Dodd-Frank after major financial shocks.
Witt made his comments after crypto exchange Coinbase withdrew support for the current draft. The company raised concerns about limits on tokenized equities, DeFi privacy, and stablecoin yield.
He echoed the remarks from Coinbase chief executive Brian Armstrong, who said last week that “no bill is better than a bad bill.” Witt noted such caution exists only because of the current administration’s stance.
Witt framed the choice as strategic rather than ideological. He asked whether lawmakers should pass a workable bill now or risk a future version written after a financial crisis by a different Congress.
Coinbase’s decision prompted the Senate Banking Committee to postpone its expected markup session. The delay surprised observers who anticipated quick movement toward a final vote.
Committee chair Tim Scott has not announced a new date for the cancelled session. This pause followed earlier expectations that the bill would advance rapidly.
Meanwhile, Armstrong said from the World Economic Forum in Davos that market structure legislation remained a top priority. He said he planned talks with bank executives to seek a compromise on stablecoin yield rules.
Read More: White House May Drop Crypto Bill After Coinbase Walks Away
The Senate Agriculture Committee continues work on its version of the CLARITY Act. Lawmakers expect a new draft on January 21 ahead of a scheduled markup on January 27.
Witt said most industry participants may dislike some provisions. Still, he argued that compromise remains necessary to secure the 60 Senate votes required for passage. While differences in opinions exist, the regulatory roles would be clear through the bill, which has been agreed upon by both the lawmakers and the industry groups. It would also lead to co-existence between the CFTC and the SEC.
The core question remains open during the time committees consider amendments: Will it lead to a supportive administration that makes Congress act, or become a crisis in the future that brings about stricter crypto regulations?
The White House warned that delays to the crypto market structure bill could weaken current momentum and invite stricter future laws. Coinbase’s withdrawal slowed Senate progress, yet lawmakers still view the bill as essential. The takeaway is clear: timely compromise may shape crypto rules under a friendlier policy environment.