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<ul class="wp-block-list"><li>Patrick Witt said delaying a crypto market structure bill risks stricter future rules despite today’s rare pro-crypto political alignment.</li><li>Witt criticized Coinbase’s withdrawal, arguing the bill sets a framework and refinements should occur later via rulemaking.</li><li>Senate Banking paused markup after Coinbase’s exit, while Agriculture advanced its version amid divided industry support.</li></ul><p>Patrick Witt, a White House digital assets advisor, <a href="https://x.com/patrickjwitt/status/2013776653902614547?s=20" rel="noopener noreferrer nofollow">criticized</a> Coinbase this week after it withdrew support for a crypto market structure bill. The dispute emerged days before a planned Jan 27 Senate markup. Witt warned that delaying legislation risks stricter regulation later and said operating without clear market rules is unrealistic.</p><h2 class="wp-block-heading" id="strong-white-house-warns-against-delaying-market-structure-rules-strong"><strong>White House Warns Against Delaying Market Structure Rules</strong></h2><p>Patrick Witt said the crypto industry cannot assume indefinite operation without a regulatory framework. Notably, he stressed that a crypto market structure bill will pass eventually, regardless of timing.</p><p>Witt highlighted current political conditions as unusually favorable. He cited a pro-crypto president, unified congressional control, and supportive leadership at the <a href="https://cryptofrontnews.com/sec-and-cftc-to-hold-roundtable-on-crypto-regulatory-clarity/" rel="noopener noreferrer nofollow">SEC and CFTC</a>. However, he warned that postponement could shift rulemaking power to future Democratic administrations.</p><p>He referenced past financial crises, noting that delayed action often leads to stricter outcomes. Witt urged lawmakers and industry participants to accept compromise to secure Senate support. He said achieving 60 votes requires concessions, even when legislation feels imperfect.</p><h2 class="wp-block-heading" id="strong-coinbase-withdrawal-raises-political-tensions-strong"><strong>Coinbase Withdrawal Raises Political Tensions</strong></h2><p>The criticism followed <a href="https://cryptofrontnews.com/coinbase-rejects-senate-clarity-act-as-ceos-clash/" rel="noopener noreferrer nofollow">Coinbase’s withdrawal</a> from the bill days before Senate consideration. The exchange objected to provisions affecting stablecoin rewards and tokenized equities. Coinbase argued that revised language expanded regulatory authority beyond workable boundaries.</p><p>Administration officials described the move as a strategic mistake. They argued the bill establishes a framework rather than finalized rules. Consequently, regulators would refine definitions later through formal rulemaking processes.</p><p>The Senate Banking Committee postponed its planned markup after the withdrawal. Lawmakers redirected attention to housing policy following President Donald Trump’s affordability agenda. The delay has paused progress on the crypto legislation indefinitely.</p><h2 class="wp-block-heading" id="strong-committees-move-separate-paths-amid-industry-divisions-strong"><strong>Committees Move Separate Paths Amid Industry Divisions</strong></h2><p>While the Banking Committee paused, the Senate Agriculture Committee <a href="https://www.agriculture.senate.gov/newsroom/rep/press/release/chairman-boozman-unveils-updated-market-structure-legislation-schedules-business-meeting" rel="noopener noreferrer nofollow">released</a> its own version. Chairman John Boozman scheduled a markup despite unresolved policy disagreements. He acknowledged that bipartisan consensus remains incomplete.</p><p>Industry reactions remain divided. Andreessen Horowitz publicly supported advancing the bill despite flaws. Meanwhile, Clearpool executives warned that unclear yield definitions could disrupt on-chain liquidity markets.</p><p>Despite setbacks, White House officials maintain that crypto market structure legislation remains unavoidable.</p><p>The post <a href="https://cryptofrontnews.com/white-house-advisor-criticizes-coinbase-over-crypto-bill/" rel="noopener noreferrer nofollow">White House Advisor Criticizes Coinbase Over Crypto Bill</a> appears on <a href="https://cryptofrontnews.com" rel="noopener noreferrer nofollow">Crypto Front News</a>. Visit our website to read more interesting articles about cryptocurrency, blockchain technology, and digital assets.</p>

White House Advisor Criticizes Coinbase Over Crypto Bill

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