A senior White House crypto advisor issued a sharp warning over efforts to slow or exit the U.S. crypto market structure bill, arguing that postponement could backfire and lead to far stricter regulation later.
In a public statement, Patrick Witt framed the moment as a narrow political window, enabled by President Trump’s victory and a pro-crypto administration, to pass durable crypto legislation through Congress.
“No Bill Is Better Than a Bad Bill” But Not Forever
Witt acknowledged concerns around the current draft of the CLARITY Act, but stressed that avoiding legislation altogether is unrealistic for a multi-trillion-dollar industry.
“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…
— Patrick Witt (@patrickjwitt) January 21, 2026
He argued that assuming crypto can operate indefinitely without a comprehensive regulatory framework is “pure fantasy,” warning that inaction now could leave the industry exposed to far more punitive rules in the future.
A Rare Political Window for Crypto
According to Witt, the current alignment of factors is unusually favorable for the industry:
- A pro-crypto President
- Control of Congress
- Regulators at the U.S. Securities and Exchange Commission and Commodity Futures Trading Commissionviewed as constructive
- A relatively healthy crypto market
He questioned whether the industry should seize this opportunity now, or risk a repeat of post-crisis legislation similar to Dodd-Frank, written under far less favorable conditions.
Implicit Criticism of Industry Pushback
While not naming companies directly, Witt’s remarks were widely interpreted as a rebuke of firms, such as Coinbase, that have recently distanced themselves from the market structure bill.
He warned that rejecting imperfect legislation today could result in a future version written by political opponents of crypto, with far fewer concessions to innovation.
The Core Message: Improve, Don’t Abandon
Witt emphasized that compromise is unavoidable, especially with the need to secure 60 votes in the Senate. His closing message was blunt: perfection should not be allowed to derail progress.
From his perspective, shaping the CLARITY Act now, while the industry still has influence, is preferable to waiting for a future financial crisis that could trigger much harsher regulation with little industry input.
