U.S. Official Warns Crypto Sector Not to Waste Current Political Momentum

Source: Coindoo Original Title: U.S. Official Warns Crypto Sector Not to Waste Current Political Momentum Original Link: Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, has sent a clear message to the crypto industry: compromise is unavoidable if the United States is going to establish durable rules for digital assets while political conditions remain favorable.

Witt argued that waiting for a “perfect” crypto law is a strategic mistake. According to him, the idea that a multi-trillion-dollar industry can continue operating indefinitely without a clear regulatory framework is unrealistic. A crypto market structure bill, he stressed, is not a question of if, but when.

Why Witt says timing matters

Witt framed the current moment as unusually advantageous for the industry. With a crypto-friendly administration in place and congressional support, he believes the industry has a rare opportunity to help shape the rules rather than react to them later.

He warned that delaying action could backfire. If lawmakers fail to pass legislation now, future reforms may arrive during a crisis, when political pressure is highest and policy tends to swing toward heavy restrictions. Witt explicitly referenced the post-2008 environment, suggesting that crypto could face a Dodd-Frank-style regulatory response if rules are written after a major market collapse.

Accepting trade-offs to avoid worse outcomes

A central theme of Witt’s remarks is that “no bill is better than a bad bill” only up to a point. While he acknowledged that many in the industry dislike parts of certain proposed legislation, he argued that rejecting it outright risks something far more restrictive down the line.

In his view, even an imperfect bill negotiated today is likely to be more favorable than one written later by a less sympathetic Congress. He suggested that a future regulatory framework could be significantly more punitive, especially if it follows a financial crisis tied to digital assets.

Role of regulators in shaping the framework

Witt also highlighted the importance of having aligned regulators involved in drafting the rules. He pointed to current regulatory leadership as another reason to act now, arguing that regulators who understand the technology are more likely to produce workable standards.

From his perspective, regulatory clarity would not only reduce legal uncertainty but also encourage institutional participation, capital formation, and long-term innovation in the U.S. crypto market.

Why this matters for the crypto industry

Witt’s comments reflect a broader shift in the debate around crypto regulation. The conversation is moving away from whether regulation is needed and toward how much influence the industry has over its final shape.

For companies, developers, and investors, this moment could determine whether the U.S. becomes a long-term hub for digital asset innovation or cedes ground to other jurisdictions. Clear rules could unlock growth by giving firms confidence to build and scale domestically, while prolonged uncertainty risks driving talent and capital offshore.