Matt Hougan, the Chief Investment Officer (CIO) of Bitwise, has expressed concerns about potential challenges for the crypto market in the summer of 2025. He emphasized that uncertainty in the passage of necessary legislation by the U.S. Congress could negatively impact the development of the digital asset industry.
This is reported by Finway
Regulatory Issues in the Crypto Market
According to Hougan, despite optimistic forecasts for market growth, delays in legislative initiatives could lead to serious consequences for the crypto industry. He noted:
“I am increasingly worried that Congress will drop the ball on the one-yard line. I am extremely optimistic about the crypto market this year: institutional growth, breakthroughs in blockchain, and improvements in the regulatory climate create a strong foundation for a new boom.”
Hougan also believes that under Bitwise’s base case scenario, the price of Bitcoin could exceed $200,000, and many digital assets could set new all-time highs. However, he stresses that sustainable growth requires more than just support from the executive branch.
The GENIUS Bill and Its Implications
Hougan highlighted positive changes in the crypto industry during the presidency of Donald Trump, which include the establishment of a strategic Bitcoin reserve and the declaration of digital assets as a national priority. However, he believes that without legislative support, these changes will not have a lasting effect:
“To ensure the sustainable development of cryptocurrencies, Congress must pass a law that solidifies the progress made. This would also signal that Democrats and Republicans can unite around the crypto industry.”
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He paid particular attention to the failure of the “Guiding and Establishing National Innovation for U.S. Stablecoins” (GENIUS) bill, which was intended to lay the groundwork for the transparent and secure use of stablecoins in the U.S. In March 2025, the legislative initiative passed through the Senate Banking Committee, but in May, a group of Democrats withdrew their support, citing deficiencies related to anti-money laundering and counter-terrorism financing.
Hougan emphasized that this would have been a significant achievement for everyone:
“It would have been a triumph for all — financial stability for America, new profits for Wall Street, and a powerful boost for the dollar.”
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He also believes that the Democrats’ change of course was politically motivated:
“The revised text of the bill is even stricter on AML/KYC [anti-money laundering/‘know your customer’] issues than the previous one. It’s likely not about the content, but rather about the political sentiments regarding Trump’s ratings and his connections to cryptocurrencies.”
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Currently, another bill is under consideration in the House of Representatives — the “Stablecoin Transparency and Accountability for a Better Ledger Economy” (STABLE), while the DeFi project World Liberty Financial has launched its own stablecoin. Hougan criticizes attempts to combine these bills with broader market structure regulation, noting that
“This is a situation where perfection becomes the enemy of good. Both bills are important, but combining them will complicate the passage of either.”
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It is also worth mentioning that earlier, Republicans introduced a bill to regulate the crypto market, which defines the powers of the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission.