Bitwise's Warning from the US: A Challenging Summer Season Approaches for Cryptocurrencies! - Coin Bulletin

Bitwise Chief Investment Officer Matt Hougan warned that the industry would face a tough summer if the US Congress fails to regulate cryptocurrency.

Hougan said that his overall outlook for the cryptocurrency market for this year is positive, with many digital assets projecting them to reach all-time highs and Bitcoin to rise above $200,000. However, despite the support of the Trump administration, the cryptocurrency industry could be hampered by interference from politicians, he said.

Cryptocurrencies surged in November following expectations that Washington would take a more favorable approach to crypto after the U.S. presidential elections. During Trump's first 100 days, steps were taken such as the establishment of the Bitcoin Strategic Reserve, the declaration of digital assets as a "national priority", the SEC withdrawing crypto-related lawsuits, and the conclusion of Operation Choke Point 2.0. However, Hougan warned that these initiatives could be reversed by future administrations since they came from the White House.

Hougan stated that Congress must convert these advancements into law through legal regulations in order to advance cryptocurrency. The passage of at least one cryptocurrency law by Congress would demonstrate that Democrats and Republicans can come together on cryptocurrency, making it more difficult for future administrations to reverse these advancements.

Initially, Hougan, who expected that the stablecoin law would be passed quickly this year and would create a new profit center for Wall Street by providing a large buyer that would purchase U.S. debts, thereby granting the dollar global dominance, stated that this expectation was shaped by the Senate Banking Committee passing the GENIUS Act by a vote of 18 to 6 in March. This law requires that stablecoins have 100% reserve backing in U.S. dollars and short-term Treasury bills.

However, over the weekend, nine Democrats withdrew their support, arguing that the bill's national security and anti-money laundering provisions needed to be strengthened. This situation created a significant obstacle before the law could go to the Senate. 60 votes are needed for the bill to pass, and since the Republicans only have 53 seats, a bipartisan agreement is inevitable.

In addition to the uncertainty surrounding the GENIUS Act, there are concerns that Democrats are under pressure due to Trump's activities related to digital assets, and that the passage of certain laws may be hindered. However, Hougan believes that the stablecoin legislation will eventually pass. "Stablecoins are clearly beneficial for America, the dollar, merchants, entrepreneurs, and others. Small political games will not hinder this progress,"** he said.

As a result, if Washington can recover and pass the law, a strong bull market in the cryptocurrency market will be possible according to Hougan. Otherwise, a difficult summer may be inevitable.