White House Crypto Adviser Warns Time Is Running Out To Pass CLARITY Act | Bitcoinist.com

Trusted Editorial content, reviewed by leading industry experts and seasoned editors. Ad Disclosure Efforts to advance the long‑anticipated crypto market structure legislation, known as the CLARITY Act, are running into renewed headwinds as Washington’s attention gradually turns toward the 2026 midterm elections

Despite ongoing discussions at the White House and behind‑the‑scenes negotiations among lawmakers, banking and crypto industry leaders, the bill remains stalled, with bipartisan consensus still out of reach.

Clock Ticks For Crypto Market Structure Bill

Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, cautioned that time is becoming a critical factor

Speaking on Yahoo Finance’s Opening Bid, Witt urged policymakers not to lose momentum. “Let’s not let any moss grow here,” he said, warning that the opportunity to pass the legislation is “rapidly closing” as campaign season approaches

Related Reading: SEC Chair Confirms Crypto Taxonomy Guidance In Line With CLARITY Act FrameworkMidterm election cycles, he noted, tend to dominate Capitol Hill’s agenda, leaving little room for complex policy debates. Witt emphasized that moving the bill forward will require flexibility from both the cryptocurrency sector and traditional financial institutions

One of the primary sticking points centers on stablecoins and their potential impact on the banking system. Lawmakers, along with representatives from the banking industry, have raised concerns about a major drop in deposits from traditional banks if stablecoins are not subject to clear and appropriate regulations

The issue of whether stablecoins should be permitted to offer yield has emerged as a particularly contentious obstacle, complicating efforts to secure enough votes for passage.

Coinbase CEO Sees ‘Win‑Win’ Path Forward

While recognizing the current challenges for the bill’s approval, Coinbase CEO Brian Armstrong expressed optimism that lawmakers could reach an agreement within months

He told investors during the company’s earning call on Thursday that he is “quite optimistic” that some form of legislation will be approved “in the next few months,” pointing to what he described as a unified stance among major crypto companies

Armstrong framed the situation as an opportunity to create balanced rules that benefit both financial institutions and digital asset firms. “There’s an opportunity to make a win‑win outcome here for everyone, for banks and crypto companies and the US citizen and everyone,” he said.

Related Reading: Coinbase Users Locked Out: Unable To Buy, Sell, Or Transfer CryptoDespite the delays, Witt said the administration remains committed to refining the proposal and working with lawmakers on both sides of the aisle. The goal, he said, is to improve the legislation where necessary while preserving its core objectives

In his view, the bill represents “a good product at the end of the day,” and the administration intends to keep pushing forward even as the political calendar grows more crowded.

The daily chart shows the total crypto market cap currently at $2.33 trillion. Source: TOTAL on TradingView.comFeatured image from OpenArt, chart from TradingView.com

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