Speaking on CoinDesk Live at the Ondo Summit in New York City, former House Financial Services Chairman Patrick McHenry and White House Advisor Patrick Witt said a sweeping crypto market structure bill could be passed within months.
Latest news: Optimism is growing in Washington and in the industry.
- McHenry and Witt discussed the growing momentum for landmark cryptocurrency legislation, even as debates over performance, DeFi, and ethics intensify.
- McHenry predicted that a finalized market structure bill could reach the president’s desk by Memorial Day.
- Witt said President Trump has personally prioritized the legislation following the passage of the Genius Act.
Inside the White House there is pressure: Negotiations are tightening.
- Witt said that in a recent White House-brokered meeting on stablecoin performance, “new areas of agreement” emerged while remaining red lines were clearly defined.
- He said the administration’s goal is to move from high-level principles to writing actual legislative language.
- Witt emphasized that his role is to negotiate a deal that can survive scrutiny by both the Senate and the House of Representatives.
The conflicting point: The performance of stablecoins is the biggest unsolved problem.
- Witt said there is broad agreement on prohibiting deceptive practices, including the marketing of stablecoins as FDIC-insured deposits.
- The dispute centers on whether centralized exchanges should be allowed to pay a passive yield on dormant stablecoin balances.
- Banks, especially community lenders, see yield as a threat to deposit funding, while crypto companies argue that yield drives platform engagement.
Why DeFi is important: McHenry says it’s critical.
- McHenry said market structure legislation “doesn’t work without DeFi.”
- He argued that decentralization is the source of cryptocurrency’s efficiency, transparency, and lower costs compared to traditional finance.
- McHenry said tokenized lending products are already cheaper than traditional securities loans, indicating strong market demand.
The policy: Ethical concerns lurk, but cannot block your path.
- McHenry said ethics rules should apply permanently to all officials, not target a single administration or family.
- Witt said some Democratic proposals would have placed broad restrictions on officials’ spouses and were “very overblown.”
- Both said a closer ethical compromise could still unlock bipartisan support, although Republicans could advance the bill with party-line votes if necessary.
What comes next: A compressed legislative schedule.
- Witt said drafting teams are now “trading papers” and working through specific legal language.
- He said the White House is putting pressure on banks and crypto companies to negotiate in good faith.
- McHenry said Senate action could come before Easter, setting up rapid progress toward final approval.
Watch CoinDesk Live from Ondo Summit here.
