White House Shifts Focus to Regulators After Crypto Bill Stalls

The White House has shifted its focus to regulators after the Digital Asset Market Clarity Act stalled in the Senate, according to officials. With chances of passing the bill in the lame duck session now highly unfavorable, the administration is urging federal regulators like the SEC and CFTC to advance crypto rules and exemptions independently. Patrick Witt, White House crypto adviser, notes that any regulatory progress may face legal challenges without statutory backing.

The shift in strategy leaves the crypto industry's top policy effort dependent less on a post-election congressional push and more on rulemaking at regulatory agencies. Officials acknowledge that conditions in Congress are highly unfavorable for the bill, which has been the digital asset sector's main legislative priority for establishing U.S. crypto market rules.

The White House adviser expressed frustration over the failed legislative effort, calling it a major disappointment after a year of work. He voices frustration over the lack of progress on regulating the industry through new legislation and highlights the importance of regulatory action under existing authorities.