Patrick Witt, a close crypto advisor to President Trump, is confident that a US crypto market structure bill will pass sooner or later. He says the debate should no longer be about whether a bill is needed. It should be about when it finally becomes law.
Witt admits that many people in crypto like to say that no bill is better than a bad one. He says that mindset only works because the current government is friendly toward crypto. But he warns that this comfort should not turn into denial. A bill is coming no matter what.
He made it clear that the crypto industry cannot expect to stay unregulated forever. In his view, a multi-trillion-dollar market cannot survive long without clear rules. Waiting too long could make things worse.
Witt says the current political setup is rare. The president supports crypto. Republicans control Congress. Regulators at the SEC and CFTC already understand the space. According to him, this is the best window the industry will get.
He also warned that delaying action could open the door to tougher laws later. A future financial crisis or a shift in political power could push Democrats to write far stricter rules. He believes some compromise now is far safer than harsh punishment later.
Witt has shown frustration with parts of the industry. He pointed at companies like Coinbase that pulled support from the CLARITY Act due to specific clauses. He criticized the idea of holding out for a flawless bill. He said progress matters more than perfection.
The CLARITY Act is at the center of the debate. The bill tries to clearly explain how crypto should be regulated in the US. It defines what digital assets are. It explains digital commodities. It also sets clear meaning for blockchain.
The bill splits responsibility between regulators. The SEC would handle securities and investment offerings. The CFTC would control commodities and trading platforms. Some tokens could start as securities and later become commodities once they are decentralized enough.
Crypto exchanges and brokers would need to register under the CFTC. Projects would also need to share basic disclosures. Bigger and older blockchains would face lighter rules. The bill clearly protects the right to self-custody.
The CLARITY Act also supports fundraising. Crypto projects could raise up to $75 million every year without full SEC registration if they hit decentralization goals.
Not everyone supports the bill. Some consumer groups say it weakens investor protection. Others worry that dividing power between the SEC and CFTC could create confusion. A few Democratic lawmakers feel the bill favors crypto companies too much.
Still, Witt believes these disagreements prove why compromise is needed. He says passing the bill now under friendly conditions is smarter than risking a tougher version later.
The CLARITY Act has already passed the House. It is now waiting for the Senate to decide its future. Patrick Witt remains optimistic. He believes political timing and practical reality will push the bill across the finish line.
