At the Ondo Summit in New York City, former House Financial Services Chair Patrick McHenry and White House advisor Patrick Witt expressed optimism about a sweeping crypto market structure bill passing soon. McHenry forecasted the legislation reaching the president's desk by Memorial Day, while Witt highlighted ongoing White House efforts to broker agreements. Disputes over stablecoin yields and ethics rules persist but appear surmountable.
Speaking on CoinDesk Live at the Ondo Summit, Patrick McHenry and Patrick Witt outlined growing momentum for landmark crypto legislation amid intensifying debates on yield, decentralized finance (DeFi), and ethics.
McHenry, who previously chaired the House Financial Services Committee, predicted that a finalized market structure bill could arrive at the president's desk by Memorial Day. Witt, serving as a White House advisor, noted that President Trump has personally prioritized the bill following the passage of the Genius Act. Recent negotiations, including a White House-brokered meeting on stablecoin yield, have identified "new areas of agreement" and clarified remaining differences, with the administration aiming to shift from broad principles to concrete legislative drafting.
Witt stressed his role in facilitating a deal robust enough for both Senate and House approval. The central unresolved issue involves whether centralized exchanges can offer passive yield on idle stablecoin balances. Banks, particularly community lenders, view this as a risk to their deposit funding, whereas crypto firms contend it boosts user engagement. There is consensus on prohibiting deceptive practices, such as promoting stablecoins as FDIC-insured deposits.
McHenry emphasized DeFi's essential role, stating that market structure legislation "doesn't work without DeFi." He highlighted how decentralization enables crypto's efficiency, transparency, and cost advantages over traditional finance, with tokenized lending already proving cheaper than conventional securities lending.
Ethics concerns could complicate bipartisan support, but both speakers suggested compromises are feasible. McHenry advocated for permanent ethics rules applying to all officials, rather than targeting specific administrations. Witt criticized some Democratic proposals as "grossly over-scoped" for restricting officials' spouses. Drafting teams are now exchanging specific statutory language, with the White House urging good-faith talks between banks and crypto entities. McHenry anticipated Senate action before Easter, paving the way for rapid final passage.
