Key Takeaways:
- Potential $20 Trillion Investment: Bitwise’s Matt Hougan suggests the $20 trillion financial advisory industry could invest significantly in crypto with regulatory clarity.
- Regulatory Progress: Recent political developments and the SEC’s approval of spot Ether ETFs indicate positive regulatory movement for the crypto sector.
- Optimism Amidst Challenges: Despite setbacks like President Biden’s veto, Hougan remains optimistic about the crypto market’s potential and future policy changes.
Matt Hougan, the chief investment officer at Bitwise, suggests that the $20 trillion financial advisory industry could significantly invest in the crypto sector if U.S. regulatory uncertainties are resolved.
Regulatory ambiguity has deterred financial advisors from increasing their crypto exposure over the past five years.
The market is undervaluing the impact of Washington's changing attitude towards crypto. Despite the veto, imho we should already be at all-time highs.
— Matt Hougan (@Matt_Hougan) June 4, 2024
I wrote about this in my latest CIO Memo: "Washington Awakens: This Is What Alpha Looks Like."https://t.co/1ukDeCYNLs pic.twitter.com/6bO3iIh2aY
However, Hougan believes the U.S. is nearing regulatory clarity, which could unlock substantial investments in crypto.
Hougan highlights recent political developments, such as the Democratic support for repealing Staff Accounting Bulletin 121 and the House’s passage of the Financial Innovation and Technology for the 21st Century Act (FIT21), as positive signs for the crypto community.
Additionally, the SEC’s approval of spot Ether exchange-traded funds (ETFs) on May 23 is seen as a significant step forward.
Despite President Biden’s veto of the SAB 121 repeal, Hougan remains optimistic, noting that the crypto market has faced challenges for a decade.
OPINION: In the Ongoing SAB 121 Fight, Here’s How Crypto Can Move Forward With Bipartisan Support
— Laura Shin (@laurashin) June 5, 2024
Despite the Biden veto, Congress is already displaying bipartisanship. The @BlockchainAssn plans to capitalize on this momentum.
by @KMSmithDChttps://t.co/WruqvWkqa0
He sees significant potential in the largely untapped crypto market but acknowledges that concrete policy changes have yet to materialize.
Hougan concludes that while the tide has changed, the actual impact on the market is still pending.
About The Author
Victor Fawole, a seasoned Web3 content creator and social media influencer, excels in bringing the pulse of the crypto world to our readers.
With a keen eye for emerging trends and a talent for engaging storytelling, Victor’s articles offer a fresh perspective on the ever-evolving digital currency landscape.
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