Patrick Witt Crypto Negotiations: Will the CLARITY Act Move On?

Patrick Witt White House crypto adviser, is leading negotiations with Senate Democrats over the CLARITY Act. A potential deal on the bill could include restrictions on crypto businesses owned by federal officials, including Donald Trump and his family.

The CLARITY Act is a bill designed to regulate the U.S. digital asset market. It would split oversight between the SEC and the CFTC: the SEC would continue to oversee securities, while the CFTC would gain broader authority over digital commodities and the crypto spot market.

The bill is meant to clarify which tokens qualify as securities and which fall under digital commodities. It would also set requirements for exchanges, brokers, custodians, and other market participants.

The CLARITY Act is now awaiting a Senate vote. On May 14, the Senate Banking Committee approved the bill in a 15 to 9 vote. It was backed by every Republican on the committee, along with two Democrats, Ruben Gallego and Angela Alsobrooks.

BREAKING: 🇺🇸 Senate Banking Committee PASSES the Clarity Act in 15-9 vote.

The bill now goes to the full Senate. pic.twitter.com/TCs6T283y2

— Bitcoin Magazine (@BitcoinMagazine) May 14, 2026

That is still not enough to pass the bill. In the Senate, 60 votes are needed to clear a procedural hurdle. Republicans hold 53 seats, which means the CLARITY Act needs support from at least seven Democrats or independents to reach a final vote.

Democrats are calling for restrictions on officials' crypto businesses

Democrats want to bar the president, members of Congress, federal officials, and their families from issuing, promoting, or endorsing crypto assets if they could personally benefit from doing so. Patrick Witt crypto negotiations are leading on this specific issue.

Witt represents the White House’s position, but some senators doubt he can finalize such a deal on his own. Republican Senator John Kennedy said Witt does not have the authority to strike an agreement on this issue. According to Kennedy, only Trump himself can do that.

Witt previously suggested that conflict-of-interest rules could be introduced, but only in broad terms. He said the rules should apply to everyone, from the president to a Capitol Hill intern. The White House does not want the restrictions to look like a measure aimed specifically at Trump and his family’s crypto businesses, including World Liberty Financial, the TRUMP Meme Coin, and Melania Trump Crypto Coin.

A deleted page from World Liberty Financial confirming the Trump family's connection to the project. Source: worldlibertyfinancial.com

As a result, the CLARITY Act fight is no longer only about the SEC’s and CFTC’s authority. It now also tests whether the White House is willing to accept restrictions that could hurt the president’s own crypto businesses.

DeFi and stablecoins are complicating the deal under the CLARITY Act

Patrick Witt White House negotiator’s task goes beyond the fight over Trump’s crypto businesses. The bill still raises unresolved questions around DeFi, protections for blockchain protocol developers, illicit finance, and stablecoin yield. Witt needs a compromise that works for both the White House and Democratic representatives in the Senate, without alienating the crypto industry.

One of the disputed provisions is the BRCA, or Blockchain Regulatory Certainty Act. It is meant to protect developers and participants in peer-to-peer protocols from rules designed for centralized intermediaries. If a developer does not custody customer funds or control transactions, they would not be regulated as an exchange or broker.

But the proposal has opponents. Law enforcement agencies worry that broad DeFi exemptions could make it harder to fight money laundering, sanctions evasion, and illicit financing.

Banking lobby groups also oppose models that allow crypto companies to pay users rewards for holding or using dollar-pegged tokens. The Bank Policy Institute, the American Bankers Association, and other industry groups argue that such payments could pull deposits away from banks and hurt lending.

News: Banking groups released a statement Monday criticizing a compromise on stablecoin yield from Sens. Thom Tillis (R-N.C.) and Angela Alsobrooks (D-Md.), saying it "falls short" of protecting bank deposits. pic.twitter.com/XbC9TrOP1E

— Brendan Pedersen (@BrendanPedersen) May 4, 2026

Bank of America also warned that deposits could flow into stablecoins if account holders are able to earn interest through third-party platforms. Crypto companies argue that a full ban would be anti-competitive.

If the White House gives Democrats too little, the CLARITY Act may not secure the votes it needs in the Senate. If it gives too much, the bill risks losing support from some Republicans and the crypto industry it is meant to represent. Quite a different task behind Patrick Witt White House crypto negotiator.

The White House's deadline for the CLARITY Act has been pushed back

The White House has been trying to speed up the passage of the CLARITY Act. In May, Patrick Witt said the administration hoped to pass the bill by July 4. That deadline now seems less realistic.

However, the bill has not been removed from the agenda. On July 17, the House Subcommittee on Digital Assets, Fintech, and Artificial Intelligence will hold on-site hearings in New York. The topic of the hearings is “Building the Future of Finance: How the CLARITY Act Unlocks Innovation.”

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