News
  • Andrea
    author-profile

    Andrea right arrow

    Author

    • 2 minutes read

    Crypto Faces Summer Shakeup if Congress Fails to Act, Bitwise CIO Warns

    Story Highlights
    • Trumpโ€™s pro-crypto moves, including Bitcoin reserve, face setback without Congressional backing.

    • GENIUS Act stablecoin bill collapses as Democrats cite AML, KYC concerns.

    • Bitwiseโ€™s Hougan warns political gridlock could trigger summer crypto market volatility.

    The $2.8 trillion crypto market could be headed for a rough summer and not because of Bitcoinโ€™s price swings. According to Bitwise CIO Matt Hougan, the real threat isnโ€™t market volatility, but political inaction in Washington.

    In a sharply worded blog post, Hougan warned that despite bullish momentum – from Bitcoinโ€™s recent all-time high to the Trump administrationโ€™s pro-crypto stance – regulatory indecision could throw cold water on the rally.

    Even a single bill passed into law, he says, could lock in political support and ensure cryptoโ€™s continued ascent.

    Trumpโ€™s Crypto Playbook: Big Promises, No Guarantees?

    Hougan applauded several bold moves by the current administration. These include:

    • Proposing a strategic Bitcoin reserve,
    • Declaring digital assets a national economic priority, and
    • Scrapping SEC restrictions like the controversial SAB 121.

    Add to that the appointment of Paul Atkins as SEC Chair and David Sacks as the White Houseโ€™s โ€œcrypto and AI czar,โ€ and itโ€™s clear the executive branch is putting its weight behind the digital asset revolution.

    But Hougan isnโ€™t convinced itโ€™s enough. Without bipartisan legislation, these advances remain vulnerable to the next political shift.

    Who Can Derail Crypto? Hougan Answers!

    Houganโ€™s blunt answer to what could halt cryptoโ€™s growth?

    โ€œPeople can derail crypto. More preciously, the Politicians could derail crypto,โ€ he wrote, highlighting the need for bipartisan legislation to lock in progress.

    His concern is about Congress missing the moment. Despite regulatory rollbacks and favorable appointments, nothing is set in stone without legislative action. A lasting framework is the only way to protect these gains and build long-term confidence, especially among institutional investors.

    Stablecoin Bill Hits a Wall

    One bill in particular has captured attention: the GENIUS Act, a stablecoin framework backed earlier by Coinbase CEO Brian Armstrong. It made surprising headway in March, clearing the Senate Banking Committee with rare bipartisan support.

    But by early May, momentum collapsed. 9 Senate Democrats pulled their support, citing concerns over anti-money laundering (AML) and know-your-customer (KYC) measures.

    Hougan believes this sudden reversal has more to do with political calculations than actual policy flaws. He also cautioned that combining stablecoin regulation with broader market reforms is a risky bet.

    โ€œThis is the perfect example of the enemy of the good,โ€ he noted.

    Why It Matters for Bitcoin and Altcoins

    Despite the regulatory roadblocks, Hougan remains firmly bullish on cryptoโ€™s future. Heโ€™s forecasting fresh all-time highs not only for Bitcoin, but also for Ethereum (ETH) and Solana (SOL).

    But hereโ€™s the catch: without legal clarity – especially around stablecoins and market structure – institutional capital may stay on the sidelines. That means fewer inflows, more volatility, and potentially, a delayed or diluted bull run.

    Never Miss a Beat in the Crypto World!

    Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.

    One bill could make crypto history. Inaction could make it bleed.

    FAQs

    How could Congress affect the crypto market?

    Without bipartisan laws, crypto progress remains fragile and vulnerable to political shifts or reversals.

    How does regulation impact Bitcoin and altcoin prices?

    Lack of legal clarity may keep institutions away, reducing inflows and weakening bullish momentum.

    Show More

    Related Articles

    Back to top button