White House Shifts Focus to SEC and CFTC for Crypto Regulation Overhaul

The White House and Treasury Department have announced that they will focus on overhauling digital-asset regulation through the SEC and CFTC, rather than waiting for the passage of the CLARITY Act. Adviser Patrick Witt stated that 'there is no time to waste' and that regulators should move forward with reform using their existing authority. The administration acknowledges the risk of legal disputes but believes it's necessary to act quickly.

The outcome of the November midterm elections may impact the bill's prospects, as Witt noted that if Republicans lose their majority, lawmakers' willingness to negotiate could shift. He expressed disappointment in the Senate's failure to advance the bill, saying 'this is a very disappointing result.'

The SEC and CFTC will press ahead with crypto regulatory reform, using their existing authority to the fullest extent possible. This move has been accelerated since last week, as Witt stated. The administration believes that the center of policymaking has shifted to the executive branch, while legislative discussions on Capitol Hill have cooled.