U.S. Crypto Legislation Could Unlock Trillions in Institutional Investment, Bitwise Says

Landmark crypto legislation moving through Congress could catalyze mainstream adoption by providing the regulatory clarity major financial institutions demand. Asset manager Bitwise argues that bills like the CLARITY Act and GENIUS Act would empower firms like JPMorgan and Nasdaq to fully integrate digital assets—potentially migrating trillions in traditional assets onto blockchain infrastructure.

The real transformation lies in risk mitigation, according to Bitwise CIO Matt Hougan. Years of high-profile collapses—FTX, Celsius, Terra—stemmed from regulatory voids rather than flawed technology. "You can't put the genie back in the bottle" once proper oversight exists, Hougan wrote, suggesting compliant markets will attract capital currently sidelined by volatility.