Patrick Witt, White House Executive Director of the President’s Crypto Council, has advocated for the urgent passage of crypto market structure legislation.

Pushing back Coinbase CEO’s “no bill is better than a bad bill” line, Witt argues that it is a “privilege” to say that only because Donald Trump won in 2024 and installed a pro‑crypto administration.

He wrote on X on Wednesday that it is unrealistic to expect a multi-trillion-dollar industry to operate without a comprehensive regulatory framework.

Witt bluntly warned that if the bill fails to move ahead, a future Democratic Congress may write punitive legislation in the wake of a crisis, “à la Dodd‑Frank.”

“You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem version even more,” he wrote.

Crypto Market Bill Delays – Disagreements Over Details

Patrick Witt’s comments follow the recent legislative slowdown, mainly due to disagreements over a specific section of the bill.

Notably, cryptocurrency exchange Coinbase withdrew its support for the legislation’s then-current version, labeling specific provisions as “problematic” and potentially harmful to innovation.

“This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill. Hopefully, we can all get to a better draft,” wrote Brian Armstrong in a post last week.

The current version of the bill prompted the Senate Banking Committee to postpone its markup hearing. Chairman Tim Scott noted that the Committee did not set a new date.

The delay leaves crypto industry waiting again for a clear regulatory path that could replace years of enforcement with a proper framework.

Besides, Senate Agriculture Committee Chairman John Boozman said that lawmakers need more time to finalize remaining policy details and ensure broad congressional support.

The post White House Digital Asset Advisor Calls for Immediate Crypto Market Structure Bill appeared first on Cryptonews.

The CFTC Chair Michael Selig called his chairmanship the beginning of what he calls a “golden age” for American financial markets as he takes over leadership of the U.S. Commodity Futures Trading Commission.

His remarks come as pressure intensifies on Washington to finally clarify how digital asset markets should be regulated.

Shortly after assuming office as chairman of the agency, Selig proclaimed a comprehensive plan to revamp the agency, the Future-Proof, which is a review to update decades-old CFTC regulations to more effectively reflect markets created by crypto, blockchain, and artificial intelligence.

Selig Outlines Plan to Update CFTC Rules for Blockchain and AI Trading

In an announcement of the initiative put out publicly, Selig stated that the CFTC needs to be in place to provide services to the markets of the future, and that the present-day period is a turning point in U.S. finance.

He elaborated that opinion in a Washington Post opinion piece, in which he claimed that technological changes were altering the way that financial products are produced, traded, and consumed, and that Congress was now near enacting long-awaited legislation on digital asset market structure.

He said that legislation would have a straightforward mandate on regulators and would bring sanity to an industry that has become a market worth over 3 trillion dollars.

The message by Selig is the opposite of the regulative policy of the past few years.

His criticism of the former administration was that they operated based on enforcement measures instead of explicit rules, and that digital assets and perpetual futures were shoehorned into the systems of traditional markets.

According to Selig, the strategy outsourced innovation and reduced the input of the common American.

Under his leadership, he claimed that the CFTC will work on custom-fit, purpose-specific rules that safeguard against fraud and manipulation without choking new products before they can grow.

The Future-Proof initiative will mean that CFTC staff will undergo a thorough review of the existing rules, most of which were originally agricultural futures market rules.

Selig said those rules may still work for traditional products, but do not account for blockchain-based trading venues, prediction markets, or AI-driven risk tools.

His stated goal is to modernize requirements in a way that creates a level playing field for incumbents and new entrants, while delivering what he described as the “minimum effective dose” of regulation.

New CFTC Chair Inherits Expanding Crypto Agenda

Selig officially assumed the role on December 22 after being confirmed by the Senate on December 18, replacing acting chair Caroline Pham.

Pham’s tenure was marked by an aggressive push to modernize the CFTC’s approach to crypto.

Over the past year, she launched the agency’s Crypto Sprint and oversaw the introduction of spot crypto trading on CFTC-regulated futures platforms.

She also implemented internal reforms, including the deployment of an automated market surveillance system that the agency said would save nearly $50 million annually.

Just before leaving office, Pham granted no-action relief to several prediction market operators, easing enforcement pressure while requiring full collateralization and transaction transparency.

Selig has shown continuity with that agenda, while also promising a broader reset.

Since taking office, Selig has moved quickly. On January 1, he appointed Amir Zaidi, a longtime CFTC veteran who previously worked on early regulated Bitcoin products, as his chief of staff.

On January 13, he launched the Innovation Advisory Committee, replacing the former Technology Advisory Committee, to bring in expertise from industry, academia, and public interest groups as the agency prepares rules for emerging technologies.

The post New CFTC Chair Declares “Golden Age,” Launches ‘Future-Proof’ Drive to Rewrite Crypto Rules appeared first on Cryptonews.

On Thursday, a new legislation was proposed in New York that aims to impose additional regulations on digital asset firms. The proposed law, known as the “CRYPTO” Act—short for “Cryptocurrency Regulation Yields Protections, Trust, and Oversight”—would make it illegal for digital asset firms to operate without the necessary licenses. 

The announcement came from Manhattan District Attorney (DA) Alvin L. Bragg, Jr., and New York State Senator Zellnor Myrie, who emphasized the urgency of regulating the cryptocurrency marketplace in the State.

NY’s Proposed Crypto Bill

According to the duo’s press statement, organizations that exchange, trade, or transport cryptocurrencies in New York are required to register for a virtual currency license. Failure to do so has resulted in merely civil sanctions. 

In contrast, the proposed CRYPTO Act would introduce criminal penalties for operating without a license, bringing New York’s regulatory framework closer to that of the federal system, where unauthorized conduct can result in up to five years in prison.

The new Act aims to ensure that digital asset businesses adhere to the same levels of diligence and transparency as traditional money transmitters.

Under the new legislation, unlicensed operations would fall under the category of Unlicensed Virtual Currency Business Activity, leading to a series of graduated penalties based on the value of the transactions involved. 

Offenders could face charges ranging from a Class A misdemeanor to a Class C felony for activities involving $1 million or more within a year, potentially resulting in sentences of 5 to 15 years in state prison.

A “Shadow Financial System” 

District Attorney Bragg expressed concern about the growth of cryptocurrency, describing it as a “shadow financial system” that facilitates money laundering and other criminal activities. “Crypto is the go-to means for bad actors to move and hide the proceeds of crime,” he stated. 

Bragg further urged that the time has come for unlicensed cryptocurrency businesses to face criminal repercussions for not adhering to due diligence requirements.

Senator Myrie echoed Bragg’s sentiments, noting, “As the use of crypto has grown, so has illicit activity.” He emphasized that New York, as a major financial hub, must take seriously its regulatory responsibilities. 

Myrie’s bill aims to align the state with the 18 other jurisdictions that have made unlicensed virtual currency transactions criminal offenses, to enhance consumer protection against potential fraud and scams.

This legislative push coincides with a letter from House Democrats to Securities and Exchange Commission (SEC) Chair Paul Atkins, in which several lawmakers urged the reinstatement of enforcement actions against digital asset firms. 

The letter sent on Thursday and signed by Representatives Maxine Waters, Sean Casten, and Brad Sherman, expressed deep concerns regarding the SEC’s recent retreat from prosecuting violations related to “digital asset securities.”

Featured image from DALL-E, chart from TradingView.com