White House Advisor Slams Crypto Platform Over Market Structure Bill Exit

Source: CryptoTale Original Title: White House Advisor Slams Coinbase Over Crypto Bill Exit Original Link: Patrick Witt, a White House crypto advisor, publicly criticized a major crypto platform after it withdrew support for a U.S. crypto market structure bill. The remarks surfaced as the Senate delayed the CLARITY Act markup initially set for January 27. Witt said the withdrawal risks prolonged uncertainty for the digital asset industry.

White House Responds to Platform Withdrawal

Patrick Witt criticized the platform’s decision as lawmakers debated the future of crypto regulation. He rejected the argument that abandoning imperfect legislation benefits the industry. According to Witt, expecting crypto markets to operate indefinitely without formal rules remains unrealistic.

Witt said a market structure bill will pass eventually. He stressed the timing matters more than the outcome. Witt warned that delaying legislation could leave Democrats shaping stricter rules after a future financial crisis.

Witt referenced the current political alignment as a rare opportunity. He cited President Donald Trump’s administration, Republican control of Congress, and leadership at the SEC and CFTC. However, he said industry divisions weaken the push for favorable regulation.

The platform withdrew its support shortly before a planned Senate Banking Committee markup. The CEO said the company opposed several provisions in the draft. He highlighted concerns around decentralized finance, tokenized equities, and stablecoin rewards.

The CEO said some lawmakers appeared surprised by the company’s stance. He added that the company wanted revisions before supporting the bill. This move triggered the latest delay in the Banking Committee’s review.

Boozman Releases Updated Market Structure Bill

Senate Agriculture Committee Chairman John Boozman released revised market structure legislation. The updated text appeared ahead of the committee’s January 27 markup. It builds on an earlier bipartisan discussion draft.

Boozman said the bill incorporates feedback from Senator Cory Booker and other stakeholders. He noted that while policy differences remain, the new draft improves consumer protections. Boozman said months of negotiations shaped the revised text.

Notably, the updated bill removes bracketed language from a prior 155-page draft. It excludes provisions covering certain noncontrolling blockchain developers. It also omits anti-money-laundering sections previously under debate.

The bill grants the Commodity Futures Trading Commission expanded authority. The CFTC would oversee spot markets for digital commodities that are not securities. This includes assets such as bitcoin.

The legislation also preserves liability protections for developers. These protections apply if developers do not control customer assets. Crypto advocates view this provision as critical for decentralized finance projects.

Ji Hun Kim, CEO of the Crypto Council for Innovation, welcomed the release. He called it an important step toward a comprehensive framework. Kim said clear rules support consumer protection and responsible innovation.

Senate Delays Extend Regulatory Uncertainty

Despite progress in the Agriculture Committee, the Senate delayed the CLARITY Act again. According to reports, the markup may now occur in late February or March. Sources cited shifting priorities within the Senate Banking Committee.

The Banking Committee reportedly turned its focus to housing-related legislation. This shift followed requests from the Trump administration. Trump emphasized domestic economic issues during a recent Davos speech.

During that speech, Trump expressed optimism about passing the CLARITY Act. However, the delay extended uncertainty for crypto firms operating in the U.S. Market participants continue to await clearer federal rules.

Democrats have raised additional concerns during negotiations. Some questioned consumer protections within decentralized finance. Others criticized President Trump’s limited Democratic appointments at the SEC and CFTC.

Another major dispute centers on stablecoin rewards. Banking groups argue such rewards could drain deposits from community banks. Crypto firms counter that earlier laws already addressed these concerns.

Before becoming law, the CLARITY Act must secure 60 Senate votes. This requires unanimous Republican support and at least seven Democrats. The final version must also reconcile Agriculture and Banking Committee drafts.

The White House criticism, the platform’s withdrawal and repeated Senate delays continue influencing the CLARITY Act’s path. Lawmakers now face pressure to reconcile industry divisions and committee differences. For now, the Agriculture Committee’s bill remains the most advanced effort toward crypto market structure rules.