The conversation around cryptocurrency in the United States appears to be entering a new phase as key legislation gains traction in Congress. According to Bitwise Chief Investment Officer Matt Hougan, the passage of several pro-crypto bills under discussion in Washington could have lasting implications for the market.
These include the GENIUS Act, which aims to establish a regulatory framework for stablecoins; the CLARITY Act, designed to regulate broader digital currency assets; and the Anti-CBDC Surveillance State Act, which would prohibit the introduction of a US central bank digital currency (CBDC). The GENIUS Act has already cleared the Senate, placing it a step closer to becoming law.
In the absence of defined rules, offshore platforms with inadequate internal controls and auditing were able to thrive, resulting in significant losses for users.
He contends that proper legislation could have prevented such failures. “If clear regulations had allowed safer versions of these services to exist in the US, many of the historical blow-ups might not have occurred,” Hougan stated.
While some may question whether future administrations could reverse pro-crypto momentum, Hougan remains unconcerned. He pointed out that support for legislation like the GENIUS Act has been bipartisan, passing the Senate 68-30 with significant backing from both Democrats and Republicans.
According to Hougan, as financial institutions like BlackRock, JPMorgan, and Morgan Stanley expand their crypto operations, the likelihood of political reversal diminishes. “As a broader array of investors and firms becomes involved in crypto, it will be increasingly difficult for politicians to align against it,” he said.
Should these legislative efforts succeed, Hougan concludes that crypto is positioned to transition further into the mainstream. With clearer rules, reduced risk, and rising institutional support, the digital asset market may be entering a new era of growth and maturity.
Featured image created with DALL-E, Chart from TradingView
