White House crypto adviser Patrick Witt and Treasury Assistant Secretary Luke Pettit said the so-called lame duck session of Congress is unlikely to advance the Digital Asset Market Clarity Act, shifting focus instead to ongoing regulatory work at federal agencies.
Speaking at a CoinDesk Policy & Regulation event in Washington, both officials noted that the legislation's prospects depend on the outcome of November's congressional elections. Pettit said the political environment in Congress is challenging for the bill, describing the waters as "incredibly chilled." Witt added that election results will "motivate certain people or reduce motivation for others," with expectations that Democrats would be less likely to negotiate the legislation if they gain greater authority.
The Senate failed to advance the Clarity Act just days before the officials' comments, marking a setback for what has been the crypto industry's top policy priority.
Regulators Take the Lead
Despite the legislative stall, Witt emphasized that regulators are moving forward. "There's no time to waste now," he said, citing recent crypto-related activity at the Securities and Exchange Commission and the Commodity Futures Trading Commission. He acknowledged that regulatory actions may face legal challenges without the backing of legislation, but said the agencies have substantial existing authorities to work with.
Stablecoin Rules in Progress
The Treasury and banking regulators are actively implementing the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, which was passed into law. Pettit, who helped develop the GENIUS Act as a Senate staffer, said agencies are drafting rules and meeting near-term deadlines established by the legislation. "We're very cognizant of the different deadlines in front of us," Pettit said. "I think we're well on track to make all those deadlines."
Witt noted that some companies are already marketing "GENIUS-compliant stablecoins" even though final rules do not yet exist. He characterized this as companies positioning themselves to align with coming regulatory requirements. Once rules are finalized, Witt predicted a market divided between compliant and non-compliant stablecoins, with the market determining which approach succeeds.
