Patrick Witt, President Trump’s crypto advisor, is confident that the US Senate will eventually pass a crypto market structure bill.
Witt stressed that while some in the industry advocate for “no bill is better than a bad bill,” the reality is that legislation is inevitable.
The key question, he says, is not if a bill will pass, but when.
“No bill is better than a bad bill.”
What a privilege it is to be able to say those words thanks to President Trump’s victory, and the pro-crypto administration he has assembled.
But let’s not kid ourselves. There *will* be a crypto market structure bill — it’s a question of
Current political landscape offers a rare opportunity
With a pro-crypto president, Republican control of Congress, and experienced regulators at the SEC and CFTC, the timing is ideal for passing legislation favourable to the industry.
Witt warned that delaying the bill could allow Democrats to draft harsher rules, especially following a potential financial crisis.
According to Witt, assuming a multi-trillion-dollar industry can continue operating indefinitely without comprehensive regulation is unrealistic.
He believes that accepting compromises now is far better than risking punitive legislation in the future.
Witt’s comments reflect growing frustration with companies like Coinbase, which have withdrawn support from the CLARITY Act over certain provisions.
The crypto advisor specifically criticised the idea of holding out for a perfect bill, arguing that “perfect should not be the enemy of the good.”
What the CLARITY Act proposes
The CLARITY Act, the focal point of these debates, aims to provide clarity in crypto regulation.
It defines key terms such as “digital asset,” “digital commodity,” and “blockchain,” creating a clear framework for regulators.
The bill delineates jurisdiction between the SEC and CFTC.
The SEC would oversee securities and investment offerings, while the CFTC would regulate commodities and trading platforms.
Tokens that begin as securities could transition to commodity status if they achieve sufficient decentralisation.
The legislation also includes registration requirements for exchanges, brokers, and dealers under the CFTC, as well as disclosure obligations for issuers.
Mature blockchain networks would face lighter regulatory burdens, while self-custody rights for investors are explicitly protected.
The CLARITY Act also encourages fundraising, allowing projects to raise to $75 million annually without full SEC registration if they meet decentralisation milestones.
Industry reactions and the legislative challenges
Despite its comprehensive design, the CLARITY Act has faced criticism.
Some consumer advocates argue it weakens investor protections, while others warn that splitting oversight between the SEC and CFTC could create confusion.
Certain Democratic lawmakers have expressed concern that the bill favours industry interests over strict regulatory safeguards.
Nonetheless, Witt believes these debates highlight the need for compromise.
He argues that passing the bill now under favourable conditions is preferable to risking a delayed, more restrictive version later.
Witt’s message is consistent: progress is more important than perfection, and legislative action is necessary for the long-term stability of the crypto market.
The CLARITY Act has already passed the House and is now awaiting its fate in the Senate.
Patrick Witt remains optimistic that the Senate will pass the bill, citing both political opportunity and the practical necessity of regulation.
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