EddieJayonCrypto
7 May 25
Bitwise CIO Matt Hougan warned that the digital asset market could face instability if Washington fails to pass key crypto legislation amid political gridlock. Despite early progress under the Trump administration, including a US Bitcoin Strategic Reserve and eased regulatory pressures, these advanc...
Bitwise CIO Matt Hougan warns that stalled crypto legislation amid political gridlock threatens the stability and growth of the digital asset market despite early regulatory progress. The White House's regulatory advances in the first 100 days remain vulnerable without Congressional codification, risking future reversals. The bipartisan Stablecoin GENIUS Act lost crucial Senate support due to national security and anti-money laundering concerns, delaying stablecoin regulatory clarity. Passage of stablecoin legislation is seen as key to integrating crypto with traditional finance, enhancing US dollar demand, and expanding cross-border payment roles. Hougan remains cautiously optimistic that with proper legislation, Bitcoin could exceed $200,000, but warns political inaction could destabilize the market during a turbulent summer.
Hougan cautioned that the digital asset market could face instability if Washington fails to pass key crypto legislation amid political gridlock. Despite early progress under the Trump administration, including a US Bitcoin Strategic Reserve and eased regulatory pressures, these advances rely heavily on executive actions vulnerable to reversal. Stablecoin legislation, notably the Stablecoin GENIUS Act, lost crucial Senate support due to concerns over national security and anti-money laundering. Hougan stressed that passing even one bill could reduce regulatory uncertainty and foster bipartisan support. He remains optimistic that clear legislation could propel Bitcoin above $200,000 but cautions that inaction could destabilize the market during a politically tense summer.