Bitwise: Crypto Needs Real-World Use If Legislation Doesn’t Pass

TLDR

• Bitwise’s Matt Hougan warns that crypto must become indispensable if the Senate fails to pass the market structure legislation.
• The legislation aims to clarify the role of regulators like the SEC and CFTC in overseeing the crypto market.
• Hougan believes a change in administration could reverse the current pro-crypto stance if the bill is not passed.
• The crypto industry has three years to prove its value in everyday finance if the legislation does not move forward.
• The Senate bill is facing delays as lawmakers debate key provisions, which could significantly affect crypto’s future.

The crypto industry faces a critical turning point as U.S. lawmakers push for new market structure legislation. According to Bitwise investment chief Matt Hougan, if the Senate fails to pass the bill, the future of crypto will rely on its adoption in everyday life. The legislation seeks to clarify the role of regulators like the SEC and CFTC in overseeing crypto markets. If the bill doesn’t pass, Hougan warns that a change in administration could reverse the current pro-crypto regulatory stance.

Bitwise’s Matt Hougan highlights that legislation now moving through the Senate could secure the crypto market’s future in the U.S. He emphasized that this bill, if passed, would cement the pro-crypto environment into law. With a supportive legal framework, the crypto market would grow and develop more predictably.

Without this legislation, Hougan believes a change in administration could pose risks to the sector. He pointed out that the next few years could be crucial. As the current administration nears its end in 2029, crypto must prove its value to avoid setbacks.

Crypto Needs to Prove Everyday Use

Hougan stated that if the legislation fails, the crypto industry will have three years to make itself indispensable to the daily lives of Americans. “If crypto becomes a regular part of people’s financial lives, such as through stablecoins or tokenized stocks, it will push forward, regardless of who is in charge,” he said.

He also warned that if crypto fails to become integral to mainstream finance, the industry’s future will be uncertain. Without significant real-world adoption, crypto will not be able to overcome potential regulatory challenges. Hougan’s forecast underscores the importance of widespread use to secure lasting political and economic support.

Senate Bill Faces Delays, Future of Crypto at Stake

Currently, the bill is facing delays in the Senate, where committees struggle to gain bipartisan support. Lawmakers are debating key provisions, such as ethics measures and stablecoin yield bans, which further complicate the process.

If the bill passes in a form acceptable to the crypto industry, Hougan believes the market will experience a sharp rally. “Investors will expect rapid growth in areas like stablecoins and tokenization,” he said. However, if the bill fails, the future of crypto will depend on its ability to demonstrate real-world use, which could slow progress and dampen investor confidence.

While Hougan remains optimistic about the passage of crypto legislation, he acknowledged that if it does not happen, the industry will face a more gradual path to acceptance.

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