Bitwise Chief Investment Officer Matt Hougan has voiced serious concerns over Congress’s ability to pass meaningful crypto regulation, warning that the industry could face a rough summer if lawmakers drop the ball on pending legislation.
Hougan expressed optimism about crypto’s broader outlook—predicting all-time highs for many digital assets and a potential $200,000 price for Bitcoin under the current administration.
“We need Congress to pass legislation enshrining crypto’s progress in law,” he said. The Bitwise CIO had been hopeful that stablecoin legislation would sail through this year, particularly after the GENIUS Act cleared the Senate Banking Committee in March with bipartisan support.
Despite supportive moves from the Trump administration—including a Bitcoin Strategic Reserve, reversed SEC enforcement actions, and regulatory rollbacks—Hougan warned that these executive measures could be undone by future leaders.
They cited concerns over anti-money laundering and national security provisions—despite the updated bill being stronger in those areas than its earlier version. Hougan suggested that shifting political winds, including Trump’s declining approval ratings and growing scrutiny over his crypto business ties, are playing a bigger role than policy disagreements.
But momentum stalled last weekend when nine Senate Democrats, including Senate Minority Leader Chuck Schumer, abruptly withdrew support.
The bill mandates 100% reserve backing for stablecoins, regular audits, and strict marketing and insolvency rules.
Adding to the complexity, World Liberty Financial, a DeFi platform backed by Trump, recently launched its stablecoin. “Stablecoins are too obviously beneficial—for America, the dollar, merchants, and entrepreneurs—for petty political jockeying to derail progress,” he wrote. “If Washington can get its act together, I think the bull market will be unstoppable. If not, we’re in for a very difficult summer.”
Democrats are reportedly planning to boycott a joint hearing on crypto market structure, while another bill—the STABLE Act—continues to make headway.