CoinDesk
White House crypto adviser Patrick Witt and Treasury assistant secretary Luke Pettit said U.S. regulators must keep moving after the Senate failed to advance the Digital Asset Market Clarity Act. Speaking at a Washington policy event, both officials played down the bill's chances in Congress's post-election lame-duck session, which will depend heavily on the November election results.
Why it matters
The Clarity Act remains the crypto industry's top market-structure priority, but Witt said its legislative path has been blocked by Senate politics. He called the outcome a major disappointment and said there was no time to wait for a possible late-year vote.
The administration instead plans to use the authorities already available to the SEC and CFTC. Witt acknowledged that rules and exemptions could face legal challenges without the law's statutory foundation, but said regulators would do what they could with their existing powers.
Market impact
For digital-asset firms, the shift means regulatory guidance and enforcement decisions may arrive before Congress establishes a durable market-structure framework. The outcome of the congressional elections will determine whether lawmakers regain momentum or further delay the bill.
Treasury and banking agencies are also writing rules to implement the GENIUS Act, with near-term deadlines ahead. Companies are already preparing for compliance, although no GENIUS-compliant stablecoin status exists until final rules are issued. Witt expects the law to create a split between compliant and noncompliant stablecoins, while U.S. oversight could support wider adoption of tokenization.
Frequently asked questions
-
Why did officials downplay a lame-duck vote on the Clarity Act?
The Senate's failure to advance the bill chilled its prospects. Officials said any return during the lame-duck session would depend heavily on the November congressional elections.
-
What happens to crypto regulation while Congress delays the bill?
The administration plans to keep using the authorities available to the SEC and CFTC. Officials acknowledged that some regulatory actions could face legal challenges without a statutory framework.
-
How could the congressional elections affect the Clarity Act?
The elections will determine whether Republican majorities hold the House, Senate, or both. That result could either restore legislative momentum or make new deals less likely.
-
What is the current status of GENIUS Act stablecoin rules?
Treasury and banking agencies are writing the rules and working toward deadlines in the law. Companies are preparing for compliance, but no GENIUS-compliant stablecoin status exists until final rules are issued.
-
How could GENIUS rules change the stablecoin market?
White House officials expect the law to create a split between compliant and noncompliant stablecoins. They also said U.S. oversight could support broader tokenization.
TheBlock
CoinTelegraph
WatcherGuru
Altcoin Daily
CryptoSlate
Benjamin Cowen
Crypto News