White House firmly rejects ethical ban for crypto officials

Patrick Witt, Executive Director of the U.S. President’s Digital Asset Advisory Committee, has emphasized that the administration will not accept any clauses in crypto legislation that directly target President Donald Trump or his digital assets. This stance, as reported by Odaily, has been established as a red line that cannot be negotiated. This firm statement reflects the growing tension in negotiations over crypto market regulation between the White House and Congress lawmakers.

Executive Red Line: Immunity for Officials Is Not Up for Legislation

Witt highlighted that proposals for anti-corruption and ethics clauses introduced by certain Democratic members are “completely unacceptable.” He stated that the primary focus of crypto regulation should be creating a clear framework for the industry, not conducting ethical reviews of senior government officials or their families. This approach indicates that the White House fully rejects legislative efforts aimed at restricting the involvement of executive figures in the digital asset ecosystem.

Fundamental Difference: Market Regulation vs. Ethical Oversight

The strategic divergence between the administration and the Democratic Party lies in their fundamental visions for crypto legislation. While the White House prioritizes compromise between the traditional banking sector and the crypto industry—particularly regarding the mechanisms of stablecoin yields—the Democratic group continues to push for stricter oversight mechanisms on the participation of senior officials and their families. This philosophical difference has led the White House to emphasize that Democratic lawmakers need to propose more “moderate and compromise-friendly” drafts to advance the legislative process.

Progress Challenges: Rejecting Restrictions Does Not Mean Quick Resolution

Witt acknowledged that although the White House firmly rejects officials’ restriction clauses, Democratic pressures remain a significant obstacle to legislative progress. This deadlock indicates that negotiations will require substantial concessions from both sides. The administration’s current priority is to produce legislation that can be signed into law by the president, but the path to approval remains hindered by deep disagreements over the scope and provisions of ethical oversight for government officials.