Regulatory Clarity Could Unlock Billions for Crypto, Says Bitwise CIO Matt Hougan
Summary:
Bitwise’s chief investment officer, Matt Hougan, opines that resolving legal uncertainties could usher billions from the financial advisory industry into crypto. He believes the U.S. is close to regulatory clarity, which could unlock access to the $20 trillion financial advisory sector. Hougan maintains that understanding the political landscape could push the crypto market to new highs, though he concedes that the true impact is yet to be seen, given that no substantial policy shifts have occurred yet.
Bitwise’s chief investment officer, Matt Hougan, believes the resolution of legal uncertainties by U.S. regulators could unlock billions from the financial advisory industry for cryptocurrency. Up till now, regulatory murkiness is the primary deterrent for financial advisors to delve more into crypto, according to a June 4 entry by the Bitwise executive. Hougan expresses optimism that the U.S. is nearing a stage of regulatory lucidity which might guarantee access to the nation's $20 trillion financial advisory sector.
He postulates, “Envision the proportion of that $20 trillion that could flow into crypto once the foremost obstacle is removed.” “If BlackRock’s inclusion in the crypto sphere had a positive impact on the market, envision the outcome if the entire Wall Street fraternity embraced crypto as an ordinary market segment,” he extrapolated.
Hougan also signaled an alteration that initiated the previous month when Democrats overturned Staff Accounting Bulletin 121 and when the House green-lighted the Financial Innovation and Technology for the 21st Century Act (FIT21), which was celebrated by many within the crypto sector. After much conjecture, on May 23, the Securities and Exchange Commission also guaranteed approval for spot Ether (ETH) exchange-traded funds (ETFs). However, the repeal of SAB 121 was vetoed by President Joe Biden, a move Hougan states indicates that “crypto still has substantial strides to make.”
Despite this, Hougan continues to hold his belief that there is plentiful “alpha” to leverage within the crypto arena. He confirms this by citing the market's alienation from those "not inclined towards cryptocurrency.” He remains baffled by the disinterest when he elucidates on crypto-related political advancements at symposia.
Hougan insists, “If people comprehended the fallout of the pivot in [Washington D.C.], the crypto market would be soaring to unprecedented highs.” However, the veto of the SAB 121 repeal, the unlikely progress of FIT21 through the Senate before the November polls, and the yet to be inaugurated approved spot Ether ETFs are an admission that “no drastic shifts in policy have been implemented in Washington.”
Hougan summarizes by saying, “The trend is turning, but the impact is yet to materialize. Alert me when the real action commences.”
Published At
6/5/2024 8:13:00 AM
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