White House Adviser Demands Swift Crypto Market Bill Approval—Regulatory Gridlock Faces Pressure

Move fast or get left behind—that’s the message echoing from Pennsylvania Avenue. A senior White House adviser is pushing regulators to accelerate approval of a landmark crypto market bill, signaling a potential shift in the federal government’s often glacial approach to digital asset policy.

The Push for Clarity

For years, the crypto industry has operated in a gray zone—a patchwork of state rules and regulatory uncertainty that’s stifled innovation and scared off institutional capital. This bill aims to cut through the fog, establishing clear federal guidelines for everything from stablecoins to exchange operations. It’s not about handing out free passes; it’s about drawing the lines so everyone knows the rules of the game.

Why the Sudden Urgency?

Global competitors aren’t waiting. Jurisdictions from Singapore to the EU are rolling out comprehensive frameworks, actively courting blockchain businesses and talent. The adviser’s push reflects a growing fear that the U.S. is risking its financial leadership by clinging to an outdated playbook. The argument is simple: predictable regulation attracts investment, while ambiguity fuels an exodus—or worse, drives activity into the shadows.

The Balancing Act

Speed can’t come at the expense of security. The bill’s proponents argue it strengthens consumer protections by bringing major players into the light, subjecting them to know-your-customer and anti-money laundering standards that many currently bypass. Critics, however, warn that a rushed process could create loopholes big enough to drive a digital truck full of Bitcoin through—another classic case of legislation struggling to keep pace with technology’s breakneck speed.

A pivotal moment is here. This push for fast-track approval isn’t just bureaucratic maneuvering; it’s a tacit admission that crypto markets are now too big to ignore and too interconnected to regulate with a shrug. The outcome will either unlock a new wave of mainstream financial adoption or prove that Washington’s idea of ‘innovation’ is still writing checks on paper—a cynical jab at a system that often confuses motion with progress.

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.

Don’t just read crypto news. Understand it. Subscribe to our newsletter. It's free.