A crypto notation could create or destroy markets this summer – Bitwise Cio explains why
If Washington’s lawmakers fail to review the regulatory measures currently under review, the crypto market could face turmoil this summer.
Matt Hougan, chief investment officer of Bitwise, expressed concern in a recent blog post that the U.S. Congress may waste opportunities to achieve key gains from crypto regulation, despite favorable developments brought by the current administration.
White House leadership’s regulatory progress
While Hougan remains confident in the long-term prospects of digital assets, predicting new all-time highs for several tokens, including Bitcoin, he stressed that political impasses could pose short-term risks.
“People often ask me what would be off-track. My answer is simple: people. More specifically, politicians.” According to him, legislation inaction could reverse the positive momentum built recently through executive orders, regulatory rollbacks and pro-Cretto appointments.
An executive pointed out that the Trump administration has actively supported digital asset development. For example, creating strategic Bitcoin reserves, classifying digital assets as national priorities, and reversing controversial regulatory guidelines, such as SAB 121.
In addition, the appointment of crypto-consensus figures like Paul Atkins as SEC chairman, while David Sacks as the White House’s “cryptocurrency and AI Czar” further strengthened industry confidence.
However, Hougan warned that unless it is codified into law, these administrative measures are vulnerable to future government policy reversals. He believes that bipartisan support in Congress is needed to consolidate these gains and provide long-term certainty for institutional investors.
“We need legislation that includes legal progress in cryptocurrencies,” he wrote, adding that even an enacted legislation (for example, a stable legislative framework) would be a signal of political consistency in digital assets.
Stagnant Stability Acts Inspire Political Uncertainty
One of the focus of the current debate is the Genius Act, a stability bill that seems to have gained appeal earlier this year. In March, the Senate Banking Committee voted 18-6 to pass the bill forward with a cross-party support from several Democrats.
However, that momentum stagnated in early May, when nine Democratic senators, including some who supported the bill, stepped down from concerns related to anti-money laundering (AML) and Knowledge Clients (KYC) regulations.
Hougan suggested that reversals might reflect shifts in political calculations rather than substantial policy differences. He also criticized efforts within the cryptocurrency industry for combining Stablecoin legislation with broader market structural reforms, warning that the strategy could overcomplicate the process and harm recent progress. “It’s perfect for being the enemy of goodness,” Hogan said.
Despite the setbacks, Hogan is cautiously optimistic that legislation will be passed, citing the economic and geopolitical interests of stable stocks denominated in USD. “If Washington can act together, I think the bull market will be unstoppable,” he concluded.
Feature images created with DALL-E, charts on TradingView
Editing process For Bitcoin experts, focus on thorough research, accurate and impartial content. We adhere to strict procurement standards and each page is diligently evaluated by our top technical experts and experienced editorial team. This process ensures the integrity, relevance and value of our content to our readers.
