Speaking on CoinDesk Live at the Ondo Summit in New York City, former House Financial Services Chair Patrick McHenry and White House advisor Patrick Witt said a sweeping crypto market structure bill could pass within months.
Latest developments: Optimism is rising across Washington and industry.
- McHenry and Witt discussed the growing momentum for landmark crypto legislation, even as debates intensify over yield, DeFi, and ethics.
- McHenry predicted a finalized market structure bill could reach the president’s desk by Memorial Day.
- Witt said President Trump has personally prioritized the legislation following passage of the Genius Act.
Inside the White House push: Negotiations are narrowing.
- Witt said a recent White House–brokered meeting on stablecoin yield 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 drafting actual legislative language.
- Witt emphasized his role is to broker a deal that can survive both Senate and House scrutiny.
The sticking point: Stablecoin yield is the biggest unresolved issue.
- Witt said there is broad agreement on banning deceptive practices, including marketing stablecoins as FDIC-insured deposits.
- The dispute centers on whether centralized exchanges should be allowed to pay passive yield on idle stablecoin balances.
- Banks, especially community lenders, see yield as a threat to deposit funding, while crypto firms argue yield drives platform engagement.
Why DeFi matters: McHenry says it’s foundational.
- McHenry said market structure legislation “doesn’t work without DeFi.”
- He argued decentralization is the source of crypto’s efficiency, transparency and lower costs compared with traditional finance.
- McHenry said tokenized lending products are already cheaper than traditional securities lending, signaling strong market demand.
The politics: Ethics concerns loom but may not block passage.
- McHenry said ethics rules should apply permanently to all officials, not target any single administration or family.
- Witt said some Democratic proposals would have imposed sweeping restrictions on officials’ spouses and were “grossly over-scoped.”
- Both said a narrower ethics compromise could still unlock bipartisan support, though Republicans could move the bill forward on partisan votes if needed.
What comes next: A compressed legislative timeline.
- Witt said drafting teams are now “trading paper” and working through specific statutory language.
- He said the White House is pushing banks and crypto firms to negotiate in good faith.
- McHenry said Senate action could come before Easter, setting up a rapid sprint toward final passage.
Watch CoinDesk Live from Ondo Summit here.
