The crypto market may face the chaos this Tag -Heater if lawmakers in Washington do not advance the regulatory measures currently evaluated.
Bitwise Chief Investment Officer Matt Hougan expressed a remembrance of a recent -just Blog post That the United States Congress can quench an opportunity to enter the major gain in crypto regulation, despite the desirable development led by the current administration.
Advancement of Regulation led by the White House
While Hougan remains confident in the long-term perspective for digital assets, which project new all-time highs for many tokens including Bitcoin, he emphasized that political gridlock can cause a short-term risk.
“People often ask me what can be a crypto. My answer is simple: people. More specifically, politicians,” Housan wrote. According to him, the legislative waste could reverse the recent positive momentum developed through executive orders, regulation rollback, and pro-crypto appointments.
The Bitwise Executive noted that the Trump administration has been active in supporting the development of the digital asset. Examples include the creation of a strategic bitcoin reserves, classification of digital assets as a national priority, and a return to controversial regulatory guidelines such as Sab 121.
In addition, the appointment of figures aligned with crypto such as Paul Atkins as the SEC Chair and David Sacks as the “Crypto and AI Czar” of the White House has further strengthened the industry's confidence.
However, Hougan warned that these executive steps were vulnerable to the reversal policy under future administrations other than that of law. He argued that Bipartisan's support in Congress is required to strengthen these gains and provide lasting assurance to institutional investors.
“We need Congress to pass the law that is engaging in the development of crypto,” he wrote, adding that even a single piece of law conducted -such as a Stablecoin framework -would serve as a sign of political alignment with digital ownership.
Stablecoin Bill's Stablecoin Bill releases political uncertainty
A focal point of the current debate is the Genius Act, a Stablecoin bill that has emerged to get traction earlier this year. In March, the Senate banking committee voted 18-6 to move the bill, with cross-party support from some Democrats.
However, that momentum stared in early May when nine Democratic Senators, including some who supported the bill, removed their backing on concerns that were tied to anti-Money (AML) and Know-Customer (KYC) provisions.
Hougan suggested that the return may reflect the transfer of political calculations rather than policy disagreements. He also criticized efforts within the crypto industry to combine Stablecoin law with greater market structure reforms, warning that approach strategies overcomplicated the process and are detrimental to close development. “This is the perfect enemy of good,” Hougan said.
Despite the uprising, Hougan remains carefully optimistic that the law will be passed, noting the economic and geopolitical benefits of the dollar stablecoins denomination. “If Washington joins its action,” he concludes, “I don't think the bull market will stop.”
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