The White House is still hopeful that the CLARITY Act can be advanced, but still seemed angry with Coinbase CEO Brian Armstrong for withdrawing his support for the crypto bill.
In one statementPatrick Witt, executive director of the President’s Council of Advisors for Digital Assets, said:
“There will be a crypto market structure bill – it’s a matter of when, not if.”
On the controversial issues that stalled the bill’s momentum last week, Witt called for compromise, adding:
“Let’s continue to work to improve the product, recognizing that compromises must be made to get 60 votes in the Senate, but let’s not let perfection be the enemy of the good.”
However, Trump’s advisor did not miss the opportunity to take a swipe at the Coinase CEO’s statement: ‘no bill is better than a bad bill’ attitude.
He said the Coinbase CEO’s position was a “privilege” because of Trump’s pro-crypto administration.
He warned that the industry could be forced to deal with even worse and “punitive” legislation from Democrats if it squanders the current opportunity.
Source: X/Patrick Witt
Opposing views on the CLARITY Act
Some of the industry leaders, such as Brad Garlinghouse of Ripple and issuers of tokenized products such as Carlos Domingo of Securitize, agreed with the Senate draft as it is.
But Armstrong denounced a ban on stablecoin proceeds, tokenized stocks and DeFi. Since the markup for the bill faltered last week, the outlook for progress has been mixed.
According to Galaxy’s Mike Novogratz, the stablecoin yield issue could cost the bill, and so could he accused banks and lawmakers who support them.
“The dynamics of stablecoin returns are fascinating and could cost the bill. Politics over good policy. The big loser will be the American consumer.”
Source: X/Mike Novogratz
Market expectations about the CLARITY Act are declining
At the time of writing, the next Senate layout schedule was not yet public. Although SEC Chairman Paul Atkins predicted the bill would pass, the market became less optimistic after momentum stalled last week.
Prediction site Polymarket last week gave a 50/50 chance that the bill would be passed. However, at the time of writing, the chances of the bill that will become law in 2026 has fallen further to 40%.
It remains to be seen whether stakeholders will reach a consensus on the crypto market structure in January or the first quarter of 2026.
Source: Polymarkt
Final thoughts
- Trump’s crypto advisor denounced Coinbase’s “holdout” on the account, warning that the industry could lose the chance to get a “good” account.
- At the time of writing, the bill’s progress remained uncertain, with market expectations falling to 40%.