Crypto market structure can't wait for shot at post-election Clarity Act surge: White House

Senior White House and Treasury officials told an industry audience in Washington that hopes for reviving the Digital Asset Market Clarity Act during Congress’ year-end lame-duck session are uncertain and contingent on the midterm election results. At the CoinDesk Policy & Regulation event, Patrick Witt and Luke Pettit said the brief post-election window will likely be shaped by shifts in congressional majorities and changing motivations among lawmakers. Both officials urged attention to the work already underway at federal financial regulators. Witt highlighted recent activity at the Securities and Exchange Commission and the Commodity Futures Trading Commission as evidence that agencies are pressing ahead with rulemaking and enforcement even without the statute the administration had sought. Pettit described the legislative environment in Congress as “incredibly chilled” after the Senate failed to advance the Clarity Act the prior week. The administration acknowledged limits to agency action absent new statute. Witt warned that some regulatory efforts and exemptions may face legal challenges without the explicit legal underpinning the Clarity Act would have provided, but said the government will use the authorities it currently possesses. Both officials framed regulatory progress as the immediate priority rather than pinning hopes on a late congressional revival of the bill. Separately, Pettit and Witt stressed continued implementation work on last year’s stablecoin law, the GENIUS Act. Pettit, who helped draft GENIUS while on Senate staff, said Treasury and banking regulators are drafting required rules and meeting statutory deadlines. Witt noted firms are already positioning products as “GENIUS-compliant” ahead of final rules and suggested the market will sort between tokens that meet the forthcoming regulatory requirements and those that do not.