White House Official: Failing to Regulate Crypto Will Benefit China

Some conservative voices are now warning that stalling the Clarity Act, the major crypto bill, poses a direct national security threat.

Patrick Witt recently weighed in on the fierce lobbying surrounding the proposed “Clarity Act.” He has argued that efforts to derail the comprehensive regulatory framework are playing directly into the hands of foreign adversaries. 

“What are the odds the anonymous sources cited in this article have deep ties to China? Because if the US fails to lead on crypto by passing a comprehensive regulatory framework, the prime beneficiary will be the CCP,” he stated. 

The Clarity Act vs. the Genius Act

The new bill, which has been championed by Republican Senator Tim Scott, strives to implement a national rulebook for digital currency. It will make crypto companies adhere to the same banking regulations and disclosure requirements that are applied to traditional financial players. 

However, the bill faces intense opposition from a coalition of MAGA-aligned billionaires and crypto insiders. Their argument is that it will dismantle the protections established by the Genius Act. They see the major legislative fight as “corporate hijacking.” 

Legislative gridlock 

The push to pass the Clarity Act is currently stalled in the Senate Banking Committee. 

Senator Thom Tillis is pushing to delay the bill until May amid ongoing disputes over the language regarding stablecoin yield rules. 

Since Republicans hold only a razor-thin one-vote majority on the committee, the bill requires unanimous GOP support. 

There is a leadership vacuum within the administration since there is no dedicated coordinator inside the West Wing to police the new policy.