Matt Hougan, Chief Investment Officer at Bitwise, has expressed substantial apprehension regarding Congress’s ability to enact significant regulatory measures for the cryptocurrency sector. He has warned that the industry might encounter turbulent times this summer if legislators fail to act on crucial pending legislation.
In a communication to clients on Monday, Hougan conveyed a generally positive outlook for cryptocurrencies, forecasting potential all-time highs for various digital assets and estimating that Bitcoin could reach $200,000 under the current administration.
However, he emphasized that this optimistic scenario remains precarious unless Congress translates regulatory clarity into concrete law.
Hougan Warns of Regulatory Reversals Without Congressional Action
Despite favorable actions from the Trump administration, including the establishment of a Bitcoin Strategic Reserve and the reversal of certain SEC enforcement actions, Hougan cautioned that these executive measures could be reversed by future administrations.
“We need Congress to pass legislation enshrining crypto’s progress in law,” he stated.
Hougan had anticipated that stablecoin legislation would easily pass during the year, especially after the GENIUS Act garnered bipartisan backing in the Senate Banking Committee in March.
This proposed legislation calls for 100% reserve backing for stablecoins, routine audits, and stringent marketing and insolvency regulations.
Nonetheless, progress stalled recently when nine Senate Democrats, including Minority Leader Chuck Schumer, unexpectedly withdrew their support. They cited concerns regarding anti-money laundering and national security measures, despite the revised bill being more robust in those areas than its predecessor.
From me: Crypto-friendly Dems abandoned a stablecoin bill they voted for in committee after Trump crypto corruption grew too big to ignore.
Even Sen. Alsobrooks, a cosponsor of the bill and the sole Banking Committee member who remained supportive, stated that she backs her colleagues: pic.twitter.com/dFwylebTpR
— David Dayen (@ddayen) May 5, 2025
According to Hougan, the shifting political landscape, marked by declining approval ratings for Trump and increasing scrutiny over his business connections in the crypto space, may significantly influence Democratic decisions beyond simple policy disagreements.
He also voiced concerns about attempts within the crypto industry to couple the GENIUS Act with broader market structure reforms, warning that such actions risk undermining both initiatives.
Democrats Plan to Boycott Cryptocurrency Hearing
Simultaneously, turmoil is brewing in the House, where Democrats are reportedly set to boycott a joint hearing focused on crypto market structure. Another piece of legislation—the STABLE Act—continues to gain traction amidst this political upheaval.
Adding to the confusion, World Liberty Financial, a decentralized finance platform that has Trump’s backing, has recently launched its own stablecoin.
Despite the challenges, Hougan remains cautiously optimistic. “Stablecoins are too obviously beneficial—for America, the dollar, merchants, and entrepreneurs—for petty political jockeying to derail progress,” he remarked.
“If Washington can get its act together, I believe the bull market will be unstoppable. If not, we may be bracing for a very tough summer.”
In a related matter, Florida has recently retracted its efforts to create a strategic Bitcoin reserve, marking a setback in the quest for state-level cryptocurrency adoption.
Two proposed bills—House Bill 487 and Senate Bill 550—were officially withdrawn from legislative consideration on May 3, following the adjournment of the session a day earlier on May 2, without any progress on the crypto-related proposals.
This withdrawal adds Florida to a growing list of states, including Wyoming, South Dakota, North Dakota, Pennsylvania, Montana, and Oklahoma, which have recently been unable to advance legislation permitting Bitcoin-based investment strategies.
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