- Bitwise CIO cautioned that altcoin could be hit the hardest if key crypto bills aren’t passed.
- Galaxy’s Alex Thorn reiterated the same caution, but Mike Novogratz was optimistic the bills could advance.
Bitwise CIO Matt Hougan has warned of ‘mounting risk’ for crypto in the summer if Congress fails to pass key stablecoin and market structure bills.
In fact, he cautioned that altcoins could suffer the most.
“If stablecoin and market structure legislation grind to a halt in DC, it’s going to be a long summer for non-Bitcoin crypto assets.”
Crypto bills uncertainty
On Monday, he reiterated a similar sentiment in a memo to investors. He cited Democrats’ withdrawal of support for the Senate stablecoin bill, the GENIUS Act.
Hougan maintained that the bill has sufficient national safety provisions and downplayed the Senators’ demand for more safety accommodations.
Instead, he pinned the Democrats’ stance on President Donald Trump’s conflicts of interest in the crypto sector.
Additionally, he said that the push for lumping the stablecoin and market structure bills together will complicate the outcome.
“Market structure legislation is extremely important to crypto’s long-term future, but lumping things together will make the passage of any bill more difficult.”
The CIO maintained his $200K price target for BTC by the end of 2025, but warned that the overall crypto market could hit a snag if the U.S. ‘fumbles’ these legislations.
“If legislation fizzles, this could be a challenging summer for crypto. But if Washington can get its act together, I think the bull market will be unstoppable.”
The GENIUS Act is due for a Senate vote on Thursday. Galaxy’s lead research analyst, Alex Thorn, shared a similar cautionary outlook,
“If the bill doesn’t pass, chances for additional crypto legislation in 2025 could be diminished.”
But Mike Novogratz, founder of Galaxy Digital, was optimistic that the bills would be adopted.
“I am confident this will make it through. Both sides have an incentive to do so. Republicans have both houses and campaigned on crypto – the need to pass. Democrats don’t want to be labeled as obstructionists again on crypto. Plus, it’s good for America.”
The Senate vote outcome on Thursday could set the pace for crypto for the rest of the summer.