The crypto market could face turbulence this summer if lawmakers in Washington fail to advance regulatory measures currently under review.
While Hougan remains confident in the long-term outlook for digital assets, projecting new all-time highs for several tokens including Bitcoin, he emphasized that political gridlock could pose a short-term risk.
“People often ask me what could derail crypto. My answer is simple: people. More specifically, politicians,” Hougan wrote. According to him, legislative inaction could reverse recent positive momentum built through executive orders, regulatory rollbacks, and pro-crypto appointments.
Moreover, the appointment of crypto-aligned figures like Paul Atkins as SEC Chair and David Sacks as the White House’s “crypto and A.I. czar” has further boosted industry confidence.
“We need Congress to pass legislation enshrining crypto’s progress in law,” he wrote, adding that even a single piece of enacted legislation—such as a stablecoin framework—would serve as a signal of political alignment on digital assets.
However, that momentum stalled in early May when nine Democratic senators, including some who had supported the bill, withdrew their backing over concerns tied to anti-money laundering (AML) and know-your-customer (KYC) provisions.
Featured image created with DALL-E, Chart on TradingView
