Bessent's crypto adviser Tyler Williams exits Treasury as CLARITY vote runs out of clock

Tyler Williams, the top digital assets adviser to Treasury Secretary Scott Bessent, has left the federal government and is expected to head back to the private sector. 

Williams left his role ahead of the Senate’s August recess, which has still not voted on the crypto industry’s signature bill, the CLARITY Act.

What was Tyler Williams’ role at the U.S. Treasury?

The crypto industry spent 2025 building relationships in Washington, only for Tyler Williams, one of the most knowledgeable crypto officials inside the government, to leave his role just days before the Senate’s August recess. Williams is also exiting his role despite the fact that the CLARITY Act has yet to be passed. 

Treasury Secretary Scott Bessent appointed Williams in February 2025. Before that, he worked as Global Head of Policy and Regulatory Counsel at Galaxy Digital (NASDAQ: GLXY), one of the largest crypto financial firms. He also previously served as a Treasury Deputy Assistant Secretary from 2018 to 2020.

During his time as Counselor to the Secretary for Digital Assets, Williams helped write the White House’s 163-page digital assets report. He also worked on the CLARITY Act and took part in discussions about a federal Bitcoin reserve. In April 2026, he announced a new Treasury initiative to share cybersecurity information with digital asset firms.

Eleanor Terrett, who covers crypto policy, posted on social media that it “feels like crypto’s allies are leaving Washington en masse,” citing the departures of SEC Commissioner Hester Peirce, Senator Cynthia Lummis (R-WY), and Williams himself.

Can the CLARITY Act pass before the August recess?

The CLARITY Act is the crypto industry’s top legislative priority that would split the oversight of digital assets between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). It would also protect blockchain developers from liability over how third parties use their code.

With the Senate’s August recess starting August 10, lawmakers have roughly five working days to act, but Republicans hold 53 Senate seats. At least seven Democrats are required to reach the 60 votes required to move the bill forward. 

But due to concerns regarding ethics and security, seven Democratic senators have blocked the bill. Senator Elizabeth Warren (D-MA) has even called the bill “dead on arrival.”

Senate Majority Leader John Thune (R-SD) has said he wants a floor vote but has not confirmed a path forward. As of Monday, August 3, the CLARITY Act was not listed on the Senate’s floor schedule.

Galaxy Research cut its estimated odds of the CLARITY Act becoming law in 2026 from 50% to 30%. Polymarket odds have fallen from above 80% in February to roughly 30%.

The bill’s failure would likely cause a negative reaction in digital asset markets, but policy support from agencies might continue. 

A coalition that includes BlackRock (NYSE: BLK), Fidelity, and Goldman Sachs (NYSE: GS) is urging that the bill be passed. Coinbase’s (NASDAQ: COIN) chief policy officer Faryar Shirzad argued on The Hill’s Rising show that younger Democrats understand the technology and the bill “should be good to go.”

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