• Patrick Witt said large pools of capital remain on the sidelines
• The comments referenced progress toward the Clarity Act
• Institutions are watching regulatory direction
A senior White House official said institutional money could move into digital assets once regulatory conditions are defined.
Patrick Witt pointed to trillions of dollars waiting for clarity as lawmakers debate new rules.
Patrick Witt Signals Institutional Capital Waiting
Patrick Witt made the remarks in a public statement circulated Wednesday.
He said significant amounts of institutional capital remain sidelined while market participants await firmer guidance from Washington.
According to Witt, clearer frameworks could unlock participation from large investors that have so far stayed cautious.
Clarity Act Seen as Key Step
Witt added that the proposed Clarity Act is expected to advance.
The measure is widely viewed as an attempt to define oversight responsibilities and reduce uncertainty around how digital assets are treated.
Supporters argue that defined rules could improve confidence among banks, asset managers, and public companies.
Institutions Have Waited for Rules
Major financial firms have repeatedly signaled interest in crypto exposure.
However, executives often cite compliance risk and unclear jurisdiction between regulators as barriers to deeper involvement.
Statements from policymakers are therefore tracked closely by capital allocators.
Market Participants Watch for Follow-Through
While ">Witt spoke about potential inflows, timelines remain uncertain.
Legislative negotiations can shift, and final provisions may differ from early drafts.
Traders typically look for enacted law rather than promises before adjusting long-term positioning.
Witt’s comments reinforce a familiar theme in Washington: regulation may determine the speed of institutional adoption.
Whether the predicted capital arrives could depend on how quickly policymakers convert proposals into statute.
