McHenry predicts fast crypto deal as Witt brokers talks

Speaking on CoinDesk Live at the Ondo Summit in New York City, former House Financial Services Chair Patrick McHenry and White House advisor Patrick Witt said a sweeping crypto market structure bill could pass within months.

Latest developments: Optimism is rising across Washington and industry.

• McHenry and Witt discussed the growing momentum for landmark crypto legislation, even as debates intensify over yield, DeFi, and ethics.
• McHenry predicted a finalized market structure bill could reach the president’s desk by Memorial Day.
• Witt said President Trump has personally prioritized the legislation following passage of the Genius Act.

Inside the White House push: Negotiations are narrowing.

• Witt said a recent White House–brokered meeting on stablecoin yield surfaced “new areas of agreement” while clearly defining remaining red lines.
• He said the administration’s goal is to move from high-level principles to drafting actual legislative language.
• Witt emphasized his role is to broker a deal that can survive both Senate and House scrutiny.

The sticking point: Stablecoin yield is the biggest unresolved issue.

• Witt said there is broad agreement on banning deceptive practices, including marketing stablecoins as FDIC-insured deposits.
• The dispute centers on whether centralized exchanges should be allowed to pay passive yield on idle stablecoin balances.
• Banks, especially community lenders, see yield as a threat to deposit funding, while crypto firms argue yield drives platform engagement.

Why DeFi matters: McHenry says it’s foundational.

• McHenry said market structure legislation “doesn’t work without DeFi.”
• He argued decentralization is the source of crypto’s efficiency, transparency and lower costs compared with traditional finance.
• McHenry said tokenized lending products are already cheaper than traditional securities lending, signaling strong market demand.

The politics: Ethics concerns loom but may not block passage.

• McHenry said ethics rules should apply permanently to all officials, not target any single administration or family.
• Witt said some Democratic proposals would have imposed sweeping restrictions on officials’ spouses and were “grossly over-scoped.”
• Both said a narrower ethics compromise could still unlock bipartisan support, though Republicans could move the bill forward on partisan votes if needed.

What comes next: A compressed legislative timeline.

• Witt said drafting teams are now “trading paper” and working through specific statutory language.
• He said the White House is pushing banks and crypto firms to negotiate in good faith.
• McHenry said Senate action could come before Easter, setting up a rapid sprint toward final passage.

Watch CoinDesk Live from Ondo Summit here.