White House Chief Crypto Advisor Holds "Cautiously Optimistic" View on Progress of the "Clarity Act" Negotiations

Recently, White House Chief Cryptocurrency Advisor Patrick Witt stated in an interview with the media that multiple disputes surrounding the "Digital Asset Market Transparency Act" (Clarity Act) are gradually being resolved.

Witt pointed out that although disagreements between banks and the crypto industry over stablecoin yields still exist, substantial progress has been made behind the scenes in other areas of negotiation.

In an interview with reporters, Witt said that the bipartisan key senators' previous compromise plan on stablecoin yields remains effective. He hopes this compromise can be maintained long-term, as resolving the yield issue is a prerequisite for addressing other unresolved matters.

Although bankers have successfully persuaded some senators that stablecoin yields could threaten the deposit base, Witt revealed that negotiations in several other areas are also progressing simultaneously and have already achieved considerable progress.

Beyond the issue of stablecoin yields, the Clarity Act also faces challenges including risk prevention in the decentralized finance (DeFi) sector and a Democratic proposal to prohibit high-ranking government officials from profiting from cryptocurrencies.

While Witt did not disclose which specific issues have reached consensus, he remains optimistic about the overall progress. He stated that many previously difficult and intractable problems have now been largely resolved, giving him confidence to tackle the remaining challenges.

It is reported that advancing the Clarity Act still requires a committee hearing process before it can proceed to the final Senate vote. Although this step was nearly reached earlier this year, progress was delayed due to opposition from banks.

Last week, the White House attempted to reassure the banking sector by releasing an economist report stating that stablecoin yields would not pose a significant threat to banks. However, the banking association responded on Monday, claiming that the White House's argument is untenable.

Witt also mentioned that, despite significant internal disagreements within banks over stablecoin yields, those familiar with the technology tend to support stablecoins, while those less informed worry that stablecoins could threaten their interests. Nonetheless, these issues concern the interests of bank members and must be taken seriously.

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