White House Crypto Czar Aims to Shape National Digital Asset Strategy

Patrick Witt, the newly appointed executive director of the President’s Council of Advisers on Digital Assets, is prioritizing key legislative and regulatory actions to advance the U.S. government's approach to cryptocurrency. Taking over from Bo Hines, who previously served in the role before joining Tether, Witt is focusing on the passage of the Senate’s crypto market structure bill, the implementation of the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act, and the creation of a federal bitcoin stockpile.

Witt, in his first public comments as the White House’s liaison to the crypto industry, emphasized the importance of moving forward with the market structure legislation, which is seen as critical to regulating the broader crypto market beyond stablecoins. The Senate Banking Committee has already released a draft of the bill, and Witt noted that the current version has shown "significant improvements" over earlier drafts. However, the legislation must pass the 60-vote threshold in the Senate, requiring cooperation across party lines. Witt stated that his office is engaging with both Democratic and Republican senators to refine the bill, ensuring it garners sufficient support while remaining effective for the industry.

Another key focus for Witt is the implementation of the GENIUS Act, which governs stablecoin regulation and consumer protections. He expressed confidence in his ability to facilitate interagency cooperation to put the law into practice, drawing on his experience at the Department of Defense and the Office of Personnel Management. The White House is also seeking a legal framework to establish a Bitcoin Strategic Reserve, which would hold government-seized bitcoin and other cryptocurrencies. This effort, however, faces challenges due to the complex legal questions involved in setting up such a reserve.

The administration’s interest in the reserve has also sparked discussions about how it might grow beyond initial seizures. While Witt did not provide specific details, he noted that the White House is exploring "creative ways" to expand the fund using existing authorities. The administration’s involvement in crypto has drawn criticism from some lawmakers, particularly over concerns about potential conflicts of interest stemming from President Donald Trump’s personal investments in the industry. Witt dismissed these concerns, asserting that promoting a robust crypto market benefits the broader U.S. economy.

In parallel, the Bank Policy Institute (BPI) and other banking groups have raised concerns that the GENIUS Act may not cover certain entities, potentially allowing stablecoin issuers to circumvent restrictions on offering interest to token holders. These groups have warned that such loopholes could destabilize traditional banking markets and lead to significant outflows. Witt acknowledged the importance of addressing these concerns as part of the broader regulatory effort but did not provide further details on how the administration plans to respond.

The White House remains committed to expediting the legislative process, despite the bill missing the August deadline set by the president. Witt emphasized that the Senate’s work must be completed quickly to avoid uncertainty in the market, which could affect both businesses and investors. The administration is also encouraging coordination between the Senate and the House of Representatives to ensure alignment between the Senate’s market structure bill and the House’s previously passed Digital Asset Market Clarity Act.

Witt’s deep policy background, including his work at McKinsey & Co. and the Department of Defense, is expected to support his efforts in navigating the legislative landscape and ensuring smooth implementation of new regulations. As the White House crypto czar, he aims to maintain momentum on the initiatives outlined in the administration’s recent comprehensive strategy report. His appointment marks a continuation of the administration’s push to establish a regulatory framework that supports innovation while addressing risks in the evolving crypto ecosystem.