A White House-linked official has warned that delays in passing comprehensive crypto regulation in the United States could allow China to gain ground in digital asset markets.
The warning comes as the proposed CLARITY Act remains stalled in Congress, with lawmakers divided over stablecoin yield rules and broader market oversight provisions.
“What are the odds the anonymous sources cited in this article have deep ties to China?”
Said Patrick Witt, adding that failure to pass a full framework could benefit the CCP.
The CLARITY Act aims to establish a national regulatory structure for digital assets, bringing crypto firms closer to standards applied to traditional financial institutions.
However, opposition has emerged from some conservative and crypto-aligned groups who argue the bill could weaken elements of the GENIUS Act and concentrate power among larger firms.
Debate over stablecoin yields has become a central sticking point, with banks warning of competition with deposits while crypto companies push for flexibility to develop new products.
With a narrow Republican majority in the Senate Banking Committee and no clear policy coordination from the White House, the bill’s path forward remains uncertain as broader concerns about US competitiveness intensify.