White House digital assets adviser Patrick Witt has stepped up the administration's defence of the Digital Asset Market Clarity Act, describing it as a bill that is good for regulation and go
White House digital assets adviser Patrick Witt has stepped up the administration's defence of the Digital Asset Market Clarity Act, describing it as a bill that is good for regulation and good for law enforcement, pushing back against critics who argue the legislation falls short on financial crime provisions.
Speaking at a Blockchain Association town hall, Witt called the Clarity Act a "pro-regulatory, pro-enforcement bill," despite pushback from law enforcement groups who say the bill does not do enough to guard against financial crimes.He said lawmakers have responded to those concerns by adding new sections to the bill ahead of the Senate Banking Committee vote last month.
Some law enforcement agencies and Democratic lawmakers have argued that the Clarity Act could weaken anti-money laundering rules and make it harder to combat financial crime.Democratic Senator Catherine Cortez Masto voted against the bill over those concerns, saying it "undermines law enforcement's ability to trace illicit finance and recover victims' money."
On the broader stakes, Witt made the geopolitical case for moving quickly. "Money is moving faster globally, and if we are not setting standards as the United States, then we are going to be receivers of somebody else's playbook," he said.He warned that failing to act would leave the US as a rule follower, adding: "And God forbid it's China that's ultimately writing those rules."
As time runs out to pass bills this year, lawmakers are pushing toward trying to get the sweeping digital asset legislation signed into law, with potentially only a narrow window ahead of midterm elections.Senator Cynthia Lummis warned that if the bill is not passed this year, it may not be reconsidered until 2030.
Witt has previously said the administration is targeting July 4 for House passage of the Clarity Act, with the Senate Banking Committee markup planned for this month and four working Senate weeks in June for a floor vote."There's not a lot of slack left in the rope right now," he said, adding: "But it is an achievable timeline."
The Digital Asset Market Clarity Act is formally the Digital Asset Market Clarity Act of 2025 and is described as the most comprehensive piece of crypto regulation ever to pass one chamber of the US Congress.Passed by the House in 2025, the bill would formally divide oversight between securities regulators and commodity regulators, ending much of the legal uncertainty that has shaped the US crypto market for years. The Senate has yet to pass its version.
Over the past year, the Clarity Act has faced multiple hurdles, including a fight between banks and crypto over stablecoin rewards and concerns over President Donald Trump's own crypto ventures. The latter has not been resolved and could still jeopardize the bill's future.
Sources:The Block: White House crypto adviser Witt defends Clarity Act, calls it pro-law enforcementCoinDesk: White House targets July 4 for Clarity Act passageCongress.gov: H.R.3633 Digital Asset Market Clarity Act text
