White House Official Says Trillions in Institutional Capital Ready for Crypto Entry

Patrick Witt, Executive Director of the President's Council of Advisors for Digital Assets, told Yahoo Finance that substantial institutional capital remains on the sidelines pending clearer regulations for the cryptocurrency sector.

The House approved its version of crypto legislation last year, with the Senate now working on amendments. Provisions related to the Commodity Futures Trading Commission have advanced through the Agriculture Committee, while Securities and Exchange Commission sections remain in the Banking Committee. A January markup session was delayed as stakeholders work to address concerns including stablecoin yields and deposit flight issues.

Witt highlighted the administration's halt on uncontrolled government liquidation of digital assets following an executive order, preventing potential losses he estimated in the tens of billions. The government is working to centralize oversight of its Bitcoin holdings and explore budget-neutral methods to increase those reserves.

Upcoming legislation from Senator Cynthia Lummis and Representative Begich would establish formal authority over government-held digital assets, with potential future purchases requiring congressional appropriations approval.

Witt emphasized that major financial institutions like JPMorgan could engage more actively in crypto activities once regulatory frameworks are established, describing collaboration between traditional banks and crypto firms as a significant opportunity for American leadership in digital finance.