Matt Hougan, Chief Investment Officer at Bitwise, believes that the changing regulatory landscape in Washington D.C. could have a bigger impact on the crypto market than BlackRock’s entry.
Washington’s Evolving Stance
Hougan points out that recent bipartisan efforts in US legislation signal a warming stance towards digital assets. He believes that understanding the nuances of these regulatory changes could lead to significant investment opportunities.
Legislative Actions
- House vote to repeal SEC’s SAB 121 regulation, which hinders banks from handling digital assets.
- Support for FIT21 bill, which favors oversight by the crypto-friendly CFTC.
SEC’s Surprise Approval
The SEC’s approval of spot Ethereum ETFs is a significant shift in regulatory stance, reflecting a gradual acceptance of digital assets.
Disconnect Between Washington and Public Perception
Hougan notes that the public is unaware of the potential impact of these changes due to their complexity and indirect effects.
Market Potential
Hougan believes that once regulatory uncertainty is removed, a significant amount of money could flow into crypto, dwarfing the impact of BlackRock’s entry.
Bullish Outlook
Hougan predicts a bullish future for crypto as the market recognizes the new era of regulatory acceptance. However, he suggests that there may be investment opportunities until the market fully wakes up to this shift.
