White House Says Crypto Market Structure Should Not Wait for Post-Election Clarity Act Push
White House pivots from legislation to regulators
White House crypto adviser Patrick Witt and Treasury assistant secretary Luke Pettit said the Digital Asset Market Clarity Act is unlikely to advance during the post-election lame duck session of Congress. They said the focus should instead be on the work already underway at U.S. financial regulators, including the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The two officials spoke at a CoinDesk Policy & Regulation event in Washington on Sept. 22, 2026, about a week after the Senate failed to advance the Clarity Act.
Key points from the event
- The lame duck session, which falls between the November midterm elections and the start of the new Congress, will likely depend on which party gains control of the House, Senate, or both.
- Witt said there is "no time to waste now" and pointed to recent progress at the SEC and CFTC.
- Pettit described the political environment for the bill as "incredibly chilled."
- Both officials agreed the primary focus has shifted to the administration and regulators rather than Congress.
What the officials said about the Clarity Act
Witt said the midterm elections will determine whether Republican majorities hold in the House or Senate. He expressed disappointment over the Senate's decision to block the bill, saying it was a major letdown after a year of effort. He acknowledged that the regulators' rules and exemptions may face legal challenges without the Clarity Act as a foundation, but said agencies have enough authority to move forward.
Pettit, who helped create the GENIUS Act as a Senate staffer, said Treasury and banking agencies are writing rules to implement that stablecoin law and are on track to meet the law's deadlines.
Stablecoins and what comes next
Witt noted that some companies are advertising "GENIUS-compliant stablecoins," even though final implementing rules have not yet been issued. He said the market will eventually divide into two groups: stablecoins that comply with the new rules and those that do not, with the market deciding its preference. He expects the market to expand as asset tokenization grows with increased U.S. oversight, as begun at the SEC.
What is confirmed
It is confirmed that Witt and Pettit spoke at the CoinDesk event and expressed their views on the Clarity Act and regulatory priorities. It is confirmed that the Senate failed to advance the Clarity Act. It is confirmed that the GENIUS Act is already law and that agencies are working on its implementation rules.
What is still unclear
The exact timeline for the SEC and CFTC to issue their crypto-related rules is not specified. The outcome of the November midterm elections and its effect on any future Clarity Act prospects remains uncertain. Whether the regulators' actions will face legal challenges without the Clarity Act is unclear.
Why this matters for crypto
The Clarity Act was the digital asset industry's top policy priority, aiming to create clear U.S. regulations for crypto markets. Its stall in the Senate leaves regulatory action as the main path forward. The SEC and CFTC have begun advancing their own rules and exemptions even without the legislative backing the industry sought.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.