Patrick Witt, a prominent crypto advisor to Donald Trump, recently underscored the critical need for a swift passage of a comprehensive crypto market structure bill in the United States. Speaking on the urgency of establishing clear regulatory frameworks, Witt emphasized that “compromises need to be made” for the legislation to move forward, as reported by The Block on January 21, 2026.
This push reflects a growing sentiment within political and industry circles that the current regulatory ambiguity stifles innovation and pushes digital asset businesses offshore. The United States has struggled to define clear jurisdictional lines between agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), creating an environment of uncertainty for developers and investors alike.
The call for quick action comes amidst a global race for leadership in the digital assets space, with other major economies making strides in establishing their own frameworks. Without a unified approach, critics argue, the US risks falling behind, potentially impacting its long-term financial competitiveness and technological advancement in the blockchain sector.
The legislative gridlock and the path to clarity
The debate surrounding a federal crypto market structure bill has been ongoing for years, with various proposals failing to gain bipartisan consensus. Legislation such as the Financial Innovation and Technology for the 21st Century Act (FIT21), which passed the House of Representatives in May 2024, aims to clarify the roles of the SEC and CFTC, assigning primary jurisdiction over digital commodities to the CFTC. However, its path through the Senate remains uncertain, highlighting the deep divisions on how to best regulate this burgeoning industry.
Witt’s insistence on compromise suggests an acknowledgment of these political hurdles. Achieving a workable framework necessitates concessions from both sides of the aisle and from different regulatory bodies. “The perfect cannot be the enemy of the good,” a sentiment often echoed by industry advocates, underscores the pragmatic approach now being urged by Trump’s advisor.
According to a Brookings Institution analysis from late 2023, the lack of a clear regulatory framework has led to significant legal battles, enforcement actions, and a chilling effect on capital investment in US-based crypto ventures. This environment contrasts sharply with regions like the European Union, which has moved forward with comprehensive legislation like MiCA (Markets in Crypto-Assets) to provide clarity.
Economic implications and global competition
The economic stakes of effective digital asset regulation are substantial. Proponents of a clear crypto market structure bill argue it could unlock significant economic growth, create jobs, and attract investment back to the US. A report by the Atlantic Council in early 2024 highlighted that regulatory certainty is a key factor for businesses deciding where to establish operations, with many currently opting for jurisdictions with more defined rules.
Conversely, critics, including some high-ranking officials at the SEC, have voiced concerns about consumer protection and market stability, advocating for existing securities laws to largely apply to digital assets. Witt’s call for compromise aims to bridge this gap, finding common ground that protects consumers without stifling innovation. This delicate balance is vital for the long-term health and credibility of the US digital economy.
The plea from Patrick Witt underscores a pivotal moment for digital asset legislation in the US. With a potential shift in political landscape and increasing pressure from the industry, the urgency for a functional crypto market structure bill has never been higher. Future legislative efforts will likely revolve around finding those crucial compromises that can pave the way for a robust, clear, and competitive regulatory environment, shaping America’s role in the global crypto future.
