In a stark warning to the industry, Trump’s crypto advisor said: Pass the CLARITY Act or be hit with more restrictive regulations in the future.
Patrick Witt wrote on X that the bill is not flawless, but still emphasized the need to take action as long as the conditions are met. crypto proponent.
“No bill is better than a bad bill.”
What a privilege it is to be able to say these words thanks to President Trump’s victory and the pro-crypto government he has put together.
But let’s not fool ourselves. There *will* be a crypto market structure bill – it’s a matter of…
— Patrick Witt (@patrickjwitt) January 21, 2026
Source: Patrickjwitt
Will Democrats seize control after the crisis?
Witt made the decision simple: either pass the bill with a pro-crypto president and Congress, or let Democrats write punitive rules if a financial crisis hits.
You may not like the whole CLARITY Act, Witt said on X., but I can assure you that you will despise a Democratic version even more in the future.
He gave Dodd-Frank as an example to be wary of, stating that this came after the 2008 crisis and changed the financial sector with strict regulations.
The crypto market exists without detailed regulation by the federal government, and Witt called any prospect of forever crypto-related existence as pure fantasy.
He praised the existing regulatory environment: SEC and CFTC are led by pro-crypto leaders in the Trump administration, and Congress remains Republican.
You might also like: Supreme Court Tariff Ruling Looms: Will XRP Provide $1.80 Support?
Private investors are expressing their concerns
Not everyone agrees with Witt’s assessment. CryptoWendyO replied to X with doubts about the account.
You’re not wrong, CryptoWendyO tweeted. And yet at the same time this is an opportunity for retail to actually move forward.
She also expressed her anger towards politicians, explaining: “It’s such a shame to see politicians taking even more from us.
You are not wrong, but at the same time this is a unique opportunity to actually make progress and it is really sad to see how civil servants are taking more and more from us.
— Wendy O (@CryptoWendyO) January 21, 2026
Source: CryptoWendyO
CryptoWithKris, another user, brought certain concerns to X. The issue of the proceeds from stablecoins is still a subject of discussion within the ongoing discussions.
CryptoWithKris warned: Don’t underestimate the stablecoin yield issue. “If the banks win now, this will never change.”
Don’t hide the stablecoin yield problem. If the banks win now, this will never change.
— Blastoplast 💹🧲 (@CryptoWithKris) January 21, 2026
Source: CryptoMetKris
Senate votes require compromise
Witt admitted that compromises would be necessary; the Senate needs 60 votes to pass, and Republicans alone cannot reach that number.
He encouraged further efforts by working to enrich the law, but warned that perfectionism could halt the process completely.
The CLARITY Act will attempt to create a definitive regulatory structure that will determine jurisdiction between the SEC and CFTC over crypto assets.
The message Witt conveys is a reflection of larger tensions in the sector. Others believe that we should wait until we get more favorable terms, while others may not risk losing the political moment.
The controversy illuminates regulatory ambiguity in crypto. Trump’s pro-crypto stance sets a stage never seen before, but that may not be the case after his term.
#Trumps #crypto #advisor #warns #change #law