Bitwise: Political Turmoil in Washington Could Derail Crypto’s Momentum

In a recent note titled “A Mounting Risk for Crypto in D.C.,” Hougan expressed concern that Congress might “fumble the ball at the 1-yard line,” undermining what could be a historic year for digital assets. While he remains confident that Bitcoin will hit a new all-time high—potentially above $200,000—he flagged lawmakers as the biggest wild card.

So far, the Trump administration has delivered major wins for the sector. These include the creation of a U.S. strategic Bitcoin reserve, regulatory reversals by the SEC, and key crypto-friendly appointments like Paul Atkins as SEC Chair and David Sacks as the White House’s new “crypto and AI czar.” However, all these advancements stem from executive decisions and could be rolled back by future administrations unless codified into law.

The key piece of legislation Hougan highlights is the GENIUS Act, a stablecoin bill that initially garnered bipartisan support but is now facing setbacks. Over the weekend, nine Democrats—including Senate Majority Leader Chuck Schumer—reversed their support, citing concerns over anti-money laundering and KYC safeguards. Hougan believes these objections are more political than substantive, especially given that the updated version of the bill is stronger on compliance than the one that passed committee in March.

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Further complicating the picture, some industry groups are lobbying to bundle stablecoin legislation with broader market structure reforms. Hougan argues this is a strategic mistake. “The perfect is becoming the enemy of the good,” he writes, urging lawmakers and lobbyists to keep their focus narrow to avoid derailing progress entirely.

While Hougan still expects the stablecoin bill to pass—citing the clear benefits it offers to the U.S. economy and dollar dominance—he cautions that the coming weeks will be critical. If legislative momentum falters, the market could face a volatile summer. But if Congress can act, he says, “the bull market will be unstoppable.”

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