Tyler Williams, the chief digital assets advisor to Treasury Secretary Scott Bessent, has left the federal government and is expected to return to the private sector.
Williams left his post ahead of the Senate's August recess, which has still not voted on a key piece of crypto industry legislation — the CLARITY Act.
What Was Tyler Williams' Role at the U.S. Treasury Department?
In 2025, the crypto industry spent considerable time building connections in Washington, but Tyler Williams, one of the government's most knowledgeable crypto experts, left his post just days before the Senate's August recess. Williams is stepping down despite the CLARITY Act not yet being passed.
Treasury Secretary Scott Bessent appointed Williams to the position in February 2025. Prior to that, he served as head of policy and regulation at Galaxy Digital (NASDAQ: GLXY), one of the largest crypto financial companies. He previously held the position of Deputy Assistant Secretary of the Treasury from 2018 to 2020.
During his tenure as the Minister's advisor on digital assets, Williams contributed to the writing of the White House's 163-page report on digital assets. He also worked on the CLARITY Act and participated in discussions about a federal Bitcoin. In April 2026, he announced a new Treasury Department initiative to exchange cybersecurity information with digital asset companies.
Eleanor Terrett, who covers cryptocurrency policy, wrote on social media that "there seems to be a feeling that crypto allies are leaving Washington en masse," mentioning the departure of SEC Commissioner Hester Peirce, Senator Cynthia Lummis (R-Wyo.), and Williams himself.
Can the CLARITY Act Be Passed Before Parliament's August Recess?
The CLARITY Act is a priority piece of legislation for the crypto industry, which would divide 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 for third-party use of their code.
With the Senate's August recess beginning on August 10th, lawmakers have roughly five working days to decide, but Republicans hold 53 seats in the Senate. At least seven Democratic votes are needed to advance the bill and reach the 60-vote threshold.
However, due to ethical and security concerns, seven Democratic senators have blocked the bill. Senator Elizabeth Warren (D-Mass.) even called the bill "dead on arrival."
Senate Majority Leader John Thune (R-S.D.) stated he wants a Senate vote but did not confirm next steps. As of Monday, August 3rd, the CLARITY Act was not on the Senate's schedule.
Analytical firm Galaxy Research lowered its estimate for the probability of the CLARITY Act passing in 2026 from 50% to 30%. The probability of passing on Polymarket fell from over 80% in February to around 30%.
The bill's failure is likely to trigger a negative reaction in digital asset markets, however, support from public institutions may persist.
A coalition including BlackRock (NYSE: BLK), Fidelity, and Goldman Sachs (NYSE: GS) is pushing for the bill's passage. Faryar Shirzad, Chief Policy Officer at Coinbase (NASDAQ: COIN), stated on The Hill's Rising program that young Democrats understand the technology, and the bill "should be ready for passage."
