The U.S. crypto market could soon be exposed to the massive $20 trillion financial advisory industry if regulatory uncertainties are resolved, says Bitwise’s Chief Investment Officer, Matt Hougan.
For years, regulatory confusion has deterred financial advisors from diving into crypto. However, Hougan believes the U.S. is on the verge of regulatory clarity, paving the way for significant investment inflows.
“Imagine the influx of capital into crypto once the biggest regulatory barriers are removed,” Hougan stated. He emphasized that Wall Street’s acceptance of crypto could have an even more profound impact than recent moves by giants like BlackRock.
A significant shift began last month when Democrats supported the repeal of Staff Accounting Bulletin 121, and the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21). These moves were seen as victories within the crypto community.
Further bolstering the market, the Securities and Exchange Commission (SEC) approved spot Ether exchange-traded funds (ETFs) on May 23, ending months of speculation.
However, Hougan acknowledged that President Joe Biden’s veto of the SAB 121 repeal shows that challenges remain. “Crypto still has a long way to go,” he noted.
Despite setbacks, Hougan sees enormous potential in the crypto market, largely untouched by traditional investors. He observed a lack of awareness about the significance of recent political developments, which could drive the market to new highs if fully understood.
With no immediate policy changes in Washington, Hougan remains cautious. “The tide has changed, but the water hasn’t come in yet. Wake me up when the action happens,” he concluded.
The path to regulatory clarity is slow, but the potential rewards for the crypto market are substantial once the dust settles.