The upcoming crypto bull market? Bitwise Cio says the stability bill changes everything
The U.S. Senate passed the Genius Act this week, which aims to establish a stable and stable framework.
The measure passed a bipartisan supportive Cloture vote, which included a significant shift from 16 Democrats who had previously opposed it. Matt Hougan, chief investment officer of Bitwise, believes this development may lay the foundation for extending the digital asset bull market.
Stablecoins occupy a central position in regulatory push
According to Hougan, the Genius Act marks one of the most influential regulatory advances in U.S. history, and is even more influential than the recognition of spot bitcoin ETFs earlier this year.
In his notes to clients, he explained that the legislation could be normal to the use of digital currencies other than blockchain-based financial instruments, ultimately driving institutional adoption. Hougan structured the bill’s progress as akin to “a critical moment for marriage between Wall Street and cryptocurrencies.”
The Genius Act outlines strict federal guidelines for stabilizing issuers. It stipulates that events (issuer) as equivalent to the U.S. Treasury or the U.S. dollar (issuer) are registered with the federal banking regulator and use the issuer to use anti-currency money laundering schemes.
The legislation also calls for regular audits to ensure compliance and transparency. Hougan stressed the importance of these standards, noting that they could enable major financial institutions such as JPMorgan or Bank of America to ensure stable shares issued.
Currently, the Stablecoin market is worth more than $200 billion despite no clear federal regulations. Hougan believes that the formal legal framework will allow the market to further expand by $2.5 trillion by introducing traditional financial institutions, retailers and global business networks.
He envisions a future where Stablecoin transactions are as common as peer-to-peer applications like credit card payments or Venmo and are backed by incentives such as merchant discounts and faster settlement times.
The meaning of transcending stability
The bill directly addresses stabilizers, while Hogan highlights its broad implications for the cryptocurrency sector. The bill opens doors to other asset classes such as stocks, bonds and real estate by developing the blockchain network, and is marked and transferred in a similar way.
He said this possibility is crucial for blockchain networks such as Ethereum and Solana, as well as long-term investment cases such as decentralized financial platforms such as Uniswap and Aave. Hougan compared the impact of Stablecoin legislation with the impact of Bitcoin ETF approval, which treats cryptocurrencies as legal investment vehicles.
He believes that in a similar way, the Genius Act will verify blockchain-based finance and become a viable infrastructure for the broader financial system. If the bill is completed and enacted in the coming months, it could be a catalyst for a completely new scale of institutions to adopt. Hogan wrote:
This is a basic paper investing in non-Bitcoin crypto assets such as Ethereum and Solana: Financial assets above $1 million will eventually be transferred to the blockchain. The passage of the bill began the ball rolling. I suspect the impact here is similar to that of Bitcoin ETFs.
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