White House Advisor Asks Industry Stakeholders to Rally Round CLARITY Act or Face Tough Democrats

Key Insights

• Executive Director for the President’s Council on Advisors for Digital Assets advises the crypto industry to support the CLARITY Act.
• Witt claims that the market structure bill is inevitable, and a Democrat administration could pass punitive legislation.
• Crypto stakeholders are divided on their support for the bill, but Coinbase says it remains committed to getting it enacted.

Patrick Witt, the executive director of the White House Council on Advisors for Digital Assets, has called on the crypto industry to support the crypto market structure bill. In a post on X, Witt noted that this version of the CLARITY Act would be better than anything the Democrats might later pass to regulate crypto.

The comments came in response to recent pushback against the CLARITY Act within the crypto industry. With crypto stakeholders divided on whether to support the bill in its current form, there are concerns that the progress would be derailed.

Crypto Market Structure Bill is Inevitable: Witt

According to the White House advisor, the crypto market structure bill is inevitable, as it is necessary to regulate the crypto industry. He described criticism of the current bill as a privilege that is occurring only because of President Trump’s pro-crypto administration.

However, he dismissed the idea that the crypto industry will continue to exist without a regulatory framework, describing it as pure fantasy.

Witt said:

“But let’s not kid ourselves. There will be a crypto market structure bill — it’s a question of when, not if. Assuming a multi-trillion dollar industry will continue to operate indefinitely without a comprehensive regulatory framework is pure fantasy.”

Given the inevitability of the law, the White House Director has now advised the crypto industry to ensure that the CLARITY Act is passed under the Trump administration. He noted that this will allow the industry to take advantage of the pro-crypto president and regulators.

He warned that the alternative would be for the law to be passed during a Democrat administration, which could lead to punitive legislation. This is likely a reaction to opponents of the current version of the bill, who have said that no bill is better than a bad one.

Still, Witt acknowledged that the CLARITY Act in its current version has room for improvement. However, he believes it is important to get it across the finish line rather than asking for the perfect law.

Crypto Stakeholders Remain Divided on CLARITY Act Even as Efforts to Pass It Continue

Meanwhile, the statement from the White House advisor comes a few days after Coinbase pulled its support for the bill. The exchange’s CEO, Brian Armstrong, posted the decision on X, noting that the bill has too many issues.

Although stakeholders, including Cardano’s Charles Hoskinson, have also criticized the bill,  not everyone aligns with Coinbase. Already, a16z, Kraken, Circle, Ripple, and even advocacy groups such as Digital Chamber and Coin Center have endorsed the bill.

Coinbase’s decision and divided opinions in the crypto community have already led the Senate Banking Committee to postpone its markup. Reports also claim that the Trump administration has threatened to pull the plug if Coinbase does not return to the negotiating table.

Nevertheless, Armstrong has said that efforts to pass the bill remain underway and have even intensified. In a recent post on X, Armstrong stated that one of his three main goals for the week is to continue pushing for the market structure legislation.