Speaking on CoinDesk Live at the Ondo Summit in New York, former House Financial Services Chairman Patrick McHenry and White House advisor Patrick Witt said a broad crypto market structure bill could be passed within months.
Latest developments: Optimism is growing in Washington and in the industry.
- McHenry and Witt discussed the growing momentum for landmark crypto legislation, even as debates intensify over yield, DeFi and ethics.
- McHenry predicted that a finalized market structure bill could reach the president’s desk by Memorial Day.
- Witt said President Trump personally prioritized the legislation following the passage of the Genius Act.
Inside the White House: Negotiations are tightening.
- Witt said a recent White House-brokered meeting on stablecoin performance surfaced “new areas of agreement” while clearly defining remaining red lines.
- He said the administration’s goal is to move from high-level principles to writing actual legislative language.
- Witt stressed that his role is to negotiate a deal that can survive the scrutiny of the Senate and House.
The sticking point: Stablecoin yield is the biggest unresolved issue.
- Witt said there is broad consensus 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 passive yield on unused stablecoin balances.
- Banks, particularly community lenders, see yield as a threat to fund deposits, while crypto companies say yield drives platform engagement.
Why DeFi is important: McHenry says it’s fundamental.
- McHenry said market structure legislation “doesn’t work without DeFi.”
- He argued that decentralization is the source of crypto’s efficiency, transparency, and lower costs compared to traditional finance.
- McHenry said tokenized lending products are already cheaper than traditional securities lending, indicating strong market demand.
The policy: Ethical concerns loom but cannot block the way.
- McHenry said ethics rules should apply permanently to all public officials, not target a single administration or family.
- Witt said some Democratic proposals would have imposed sweeping restrictions on the spouses of public employees and were “grossly overbroad.”
- Both said a closer ethical compromise could still unlock bipartisan support, although Republicans could advance the bill based on partisan votes if necessary.
What comes next: A compressed legislative calendar.
- Witt said drafting teams are now “bargaining paper” and working on specific statutory language.
- He said the White House was pushing banks and crypto companies to negotiate in good faith.
- McHenry said Senate action could come before Easter, paving the way for a quick sprint toward final passage.
Watch CoinDesk live from the Ondo Summit here.
