White House Pushes Quick Crypto Deal as Senate Window Narrows and $1B Liquidations Rock Markets
The White House is urging US lawmakers to act quickly on legislation to reform the structure of the crypto market as political times tighten and digital asset markets face new volatility.
As the Senate struggles to secure bipartisan support and more than $1 billion in the latest crypto liquidation, officials say the window to pass an effective regulatory framework may be closing.
Patrick Witt, executive director of the President’s Council of Advisors for Digital Assets, warned that expecting the crypto industry to operate without clear rules is unreasonable. He argues that some form of legislation is “inevitable” and that a delay could leave the sector vulnerable to tougher policies in the future.
BTC's price trends to the downside on the daily chart. Source: BTCUSD on Tradingview
White House Pushes Action on Crypto Regulations
A proposed Senate bill would outline how the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) oversee crypto markets, including stablecoins and decentralized finance agreements. However, disagreements over key arrangements have slowed progress.
Both the Senate Banking and Agriculture Committees recently pushed back on markups as lawmakers worked to resolve disputes and gather enough support to move the bill forward. Witt was tight-lipped in his message to the industry: accept compromise now or risk a worse outcome later.
He criticized Coinbase CEO Brian Armstrong for withdrawing support for the current version of the bill, after Armstrong said the company “would rather have a bill than a bad bill.”
Midterm Elections Add Pressure
The push for speed is also linked to the mid-term elections in the US, which could reshape Congress. All of the House seats and 35 Senate seats are up for grabs, and polling markets and forecasts suggest that Democrats have a strong chance of flipping the House.
A divided Congress may delay or stop crypto legislation entirely. Witt warned that the political consensus needed to pass a market structure bill may not be there after the election, making the coming months critical to any deal.
$1B Debts Highlight Market Stress
The policy debate comes as markets are reeling from an intense bout of deflation. Today, more than 182,000 sellers were liquidated in one day, with a total loss of more than 1.08 billion. Most of the damage came from long positions in Bitcoin and Ethereum, as falling prices caused cascading margin calls in major exchanges.
Bitcoin alone saw more than $427 million in the long run, while Ethereum accounted for about $374 million. Technical indicators show many altcoins trading at RSI levels below 50, suggesting continued selling pressure.
Rising Japanese bond yields and a renewed sense of risk-off around the world have also strengthened the economy, prompting investors to move away from volatile assets such as crypto. Although Bitcoin later settled near $90,000, analysts said the recent rebound looks like a break after a forced sell-off rather than a clear return to bullish momentum.
Cover image from ChatGPT, BTCUSD chart on Tradingview
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