The White House sets new requirements for cryptocurrency market structure legislation

The White House administration has openly stated its conditions for passing comprehensive legislation regulating the digital asset market. According to Patrick Witte, head of the Presidential Advisory Council on Digital Assets, the U.S. government has set insurmountable boundaries that lawmakers must not cross. The central requirement from the administration is that legislation should not include provisions targeting President Donald Trump or his family members. “We have clearly outlined the insurmountable boundaries. There will be no personal prosecution of the president or his family,” Witte said in an interview with CoinDesk.

This condition is important to understand in the context of how the modern crypto market operates. Including mechanisms like OTC (over-the-counter) transactions—those that occur outside official exchanges and require separate regulation—the legislation must create a clear regulatory framework without selective pressure on individuals.

Innovation Development Strategy as the Foundation of the White House’s Position

Witte characterized the administration’s stance as part of a broader strategy to strengthen U.S. leadership in technological development. The government is not just a supporter of the cryptocurrency industry in a narrow sense but promotes innovation across all areas—from artificial intelligence to digital financial infrastructure.

“This is an innovation-oriented administration,” Witte emphasized. “We want these technologies to develop on American soil. For that, a fundamental regulatory framework is needed to provide clear rules without excessive bureaucratic burden.” According to him, without timely adoption of proper legislation, innovative developments will shift to other countries.

Competitive Threat: Why the Decision Cannot Be Delayed

Witte warned that a new architecture of financial systems is already forming worldwide, and the U.S. cannot afford to stay on the sidelines. “If we don’t seize this moment, the entire architecture will be built without us, abroad,” he noted.

This approach reflects the administration’s understanding that the cryptocurrency sector is not just a local market but part of a global reshaping of finance. Regulating the structure of the crypto market, including rules for OTC platforms and direct participant interactions, becomes a matter of national competitive advantage.

Ethical Restrictions: From Excessive Demands to Reasonable Compromises

One of the most contentious points in negotiations relates to ethical standards concerning the participation of high-ranking government officials and their families in the crypto industry. According to Witte, initial legislative proposals went too far.

“The initial proposal was absolutely excessive,” he stated. “It essentially banned spouses and family members from working in the cryptocurrency sphere, even in leadership roles or lawful activities.” The administration considers such an approach counterproductive and cannot agree to complete bans on individuals or their relatives.

Instead, the White House is open to considering reasonable restrictions that prevent conflicts of interest but do not exclude entire families from market participation. This applies to both traditional trading operations and OTC mechanisms, where direct contracts between participants require particular attention to transparency.

Signs of Consensus: Democrats Moving Toward Compromise

Despite existing disagreements, Witte expressed cautious optimism about reaching an agreement. Several Democratic lawmakers, in his view, have begun adopting a more pragmatic stance, prioritizing the creation of a functioning regulatory system over punitive measures.

“The goal is not to impose narrowly targeted rules against individuals,” Witte explained. “The goal is for digital assets to become a normal, regulated part of the financial system.” This approach involves clear classification of different asset types and trading mechanisms, including OTC operations, enabling the market to develop on a healthy basis.

According to data presented at the end of the discussion, the Trump administration itself attracted $429 million for the campaign, indicating the scale of the financial machinery behind the current political agenda.