President Trump’s top crypto advisor is expressing cautious optimism that broad cryptocurrency legislation could soon become law.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, spoke Monday at an event hosted by the Solana Policy Institute in Brooklyn, noting that months ago negotiations involved a dozen issues that all felt “impractical, unsolvable”. But now:
“I’m encouraged by the fact that we solved a lot of these that felt unsolvable.”
Congress returns with crypto on the agenda
Congress is back in Washington after a two-week recess, and the Senate Banking Committee is expected to hold a hearing to amend and vote on the crypto legislation before the end of the month.
The bill would clarify jurisdiction between the SEC and the CFTC, establish rules for exchanges, and require disclosures.
Stablecoin rewards remain a sticking point
One of the most contested issues is the treatment of stablecoin rewards.
A stablecoin law passed in July prohibits issuers from paying interest directly to holders, but does not restrict third-party platforms like Coinbase from offering rewards.
A White House report released last week found that stablecoin rewards are unlikely to meaningfully dent bank lending. The American Bankers Association pushed back, arguing the White House was analyzing the wrong question — the real concern being whether allowing yield “would encourage deposit flight.”
Ethics and developer protections also in play
Two other outstanding issues involve software developer protections and ethics.
Politico reported disagreements between law enforcement and crypto industry groups over whether bill language could impede crime-fighting efforts.
On ethics, Anthony Scaramucci, SkyBridge Capital founder and former White House communications director, acknowledged that Trump’s memecoin activity — both he and Melania launched memecoins in January 2025 — is “hurting” the industry’s legislative push, even as he expressed overall support for the administration’s crypto stance.
