If Crypto Bills Pass, ‘You Can’t Put the Genie Back in the Bottle,’ Says Bitwise CIO

With a slate of pro-crypto bills advancing through Congress during what’s being dubbed “Crypto Week,” Bitwise CIO Matt Hougan says the digital asset industry is on the verge of a transformation that could make crypto truly mainstream and virtually irreversible.

In a client note, Hougan argued that while Bitcoin’s recent surge to all-time highs is partly due to institutional demand colliding with tight supply, the regulatory developments in Washington are an underappreciated catalyst.

On July 3, the U.S. House formally designated the week of June 14 as Crypto Week and committed to advancing three major pieces of legislation:

• The GENIUS Act, to regulate stablecoins
• The Clarity Act, to define crypto market infrastructure rules
• The Anti-CBDC Act, to prohibit a U.S. central bank digital currency

The GENIUS Act has already cleared the Senate with a bipartisan 68–30 vote and could soon become the first comprehensive crypto law in the U.S., while the other two await Senate debate.

For Hougan, this is a turning point.

“If you’ve ever wondered what would happen to crypto if JPMorgan, Bank of New York Mellon, and Nasdaq could build freely in the space — you’re about to find out,” he wrote.

Clear regulations, Hougan says, will reduce systemic risk, deter bad actors, and open the door for billions in institutional capital to flow in. He predicts that with proper oversight, the kind of devastating collapses seen in the FTX, Luna, and Celsius debacles will be far less likely.

“If these bills pass, I doubt we will ever see a 70%+ drawdown in crypto again,” he added.

He also dismissed concerns over political reversal, noting growing bipartisan support and crypto’s rising popularity among younger voters and Wall Street alike.

“Crypto has become too embedded in the financial and political ecosystem to be rolled back,” Hougan said. “If these bills pass, we’ve entered a new era. Crypto is going mainstream. Risk is being reduced. And Wall Street is moving in.”

---

Editorial Note: This news article has been written with assistance from AI. Edited & fact-checked by the Editorial Team.

Interested in advertising with CIM? Talk to us!