Bitwise Warns of Crypto Market Setback as Stablecoin Bill Loses Democratic Support

Bitwise Chief Investment Officer Matt Hougan issued a stark warning to investors: the crypto market risks losing momentum if US lawmakers fail to advance stablecoin legislation. The caution follows nine Democratic senators withdrawing support for the GENIUS bill, citing insufficient AML safeguards and concerns about former President Trump’s crypto ties.

The Guiding and Establishing National Innovation for US Stablecoins Act, once seen as a bipartisan breakthrough, now faces mounting political headwinds. Hougan’s investor note emphasizes that regulatory clarity remains the critical path forward for digital assets. Without congressional action, the US risks ceding its leadership position in crypto innovation to more progressive jurisdictions.

Market participants are watching Washington closely. The stablecoin bill’s stalling comes at a pivotal moment for institutional adoption, with many traditional finance players awaiting clear rules before deepening their crypto commitments. The political impasse could delay billions in potential institutional inflows.