The clock is ticking for cryptocurrency legislation in Washington, and the White House’s top adviser is sounding the alarm.
“Don’t let any moss grow here,” urged Patrick Witt, executive director of the President’s Advisory Council for Digital Assets, on Yahoo Finance’s opening bid.
Witt warned the window to pass the critical Clarity Act is “closing fast” as the political calendar focuses on the upcoming midterms, which often consume all the legislative oxygen on Capitol Hill.
As the industry grapples with uncertainty and volatile markets, the prospect of clear regulatory guidelines hangs in the balance, threatening to leave investors in limbo. For the White House, crypto’s lack of clarity isn’t just red tape; This is a barrier to mainstream adoption for consumers and financial firms.
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Witt noted that getting the bill through would require agility from both the crypto community and the big banks, noting that the council held several meetings at the White House to seek mediation.
Currently, senators from both parties have expressed concern about potential “deposit flight” from traditional banking if stablecoins are not properly regulated. Without clear rules, many financial institutions are hesitant to fully engage with crypto for fear of unknown legal liabilities—a standoff that contributes to market volatility and stifles innovation.
It called for a “scalpel” approach to address specific concerns, such as “passive yields” in stablecoins, rather than a “chainsaw” approach that could derail the entire bill.
Coinbase ( COIN ) CEO Brian Armstrong echoed those concerns on the company’s earnings call on Feb. 12, though he struck a more upbeat tone. He told investors that he is “very optimistic” that some legislation will be passed “in the next few months” as crypto industry players remain “unified” on their questions.
“There’s an opportunity here to create a win-win outcome for everyone, the banks and the crypto companies and the American citizen and everyone,” Armstrong said. “We just want a better level playing field.”
As a publicly traded company heavily invested in the crypto ecosystem, Coinbase’s profitability and strategic plans are directly affected by Washington’s indecision. In its most recent quarter, the company reported a $667 million net loss, which it attributed partly to volatility but also to the shadow of regulatory uncertainty.
