Bitstewijke Cio Matt Hougan warned that the digital assets market can get a turbulent summer if legislators in Washington do not accept important crypto legislation, despite a strong early momentum under President Donald Trump’s government.
In a memorandum for customers, Hougan said that the recent profit of crypto remains fragile without legal guarantees of the congress, warning that political stalemate could derail the trust of investors, just as industry focuses on broader acceptance.
White House offers limited protection
Hougan expressed his concern that the possibility of sustainable reform can slip away if the congress cannot promote the accounts that tackle Stablecoins and market structure of digital assets.
He said that the regulatory groundwork that was laid in the first 100 days of the administration, although impactful, is highly dependent on the executive authority and can be reversed by a future White House.
One of the early changes since January was the establishment of a strategic reserve of the US Bitcoin (BTC), the classification of digital assets as a national priority and the recovery of SEC rights and restrictive accounting guidance.
The end of what market leaders called ‘Operation Choke Point 2.0’, a pattern of regulatory pressure on access to crypto banking, was also seen as a turning point.
Hougan, however, warned that, unless the congress carries out laws to codify this progress, future administrations can reverse it without legal friction. He emphasized that even one bill was adopted, such as the proposed Stablecoin framework, could prove two -part coordination and reduce the uncertainty of the regulations.
Stablecoin legislation loses the land in the Senate
That effort suffered a setback during the weekend. The Stablecoin Genius Act, which the Senate bank committee was cleared in March with the support of both parties, lost critical background days before it was expected to continue.
Nine Democratic senators, including Senate Line Leader Chuck Schumer and four others who initially supported the bill, withdrew their support, with reference to national security and money laundering.
The bill is said to have strictly imposed on Stablecoins with the US dollar, which mandatory the full reserve support with liquid assets such as cash and short-term treasures.
Publishing issues with market capitalizations of more than $ 50 billion would be subject to annual audits, monthly disclosures and compliance standards that tackle insolvency and marketing practices.
Hougan previously stated that the approval of a Stablecoin account would not only open Crypto for traditional financial infrastructure, but would also increase the global demand for US government debt and expand the role of the dollar in cross-border payments.
Despite the setback, Hougan remains optimistic that digital assets can reach record heights this year if the Congress provides legislative clarity. He projected that Bitcoin could rise above $ 200,000 under the right policy conditions.
However, he warned that failure to act would make the market vulnerable on the way to a politically charged summer.