The United States stands on the precipice of a significant legislative moment in the realm of cryptocurrency. This week, the House of Representatives is poised to vote on two pivotal bills—the CLARITY Act and the GENIUS Act—each with the potential to reshape the crypto landscape in profound ways. Asset manager Bitwise, in a report released Monday, underscored the transformative potential of these bills, suggesting that if passed, they could catalyze expansive growth while mitigating risks that have long plagued the industry.
A New Dawn for Institutional Investment
Bitwise’s optimism centers around regulatory clarity, which it argues would empower financial behemoths like JPMorgan, BNY Mellon, and Nasdaq to fully engage with cryptocurrencies. The report paints a picture of billions in new investments and a pathway for migrating trillions of traditional assets onto blockchain platforms. Essentially, the infrastructure is primed and ready, just waiting for Washington’s green light. As explored in our recent coverage of the House’s upcoming vote on crypto market structures, the legislative process is crucial for setting the stage for these developments.
However, the journey isn’t without its hurdles. Just yesterday, the top Democrat on the Senate Agriculture Committee voiced concerns over the market structure bill, suggesting it requires significant revisions. Yet, despite these critiques, the GENIUS Act has already sailed through the Senate with a 68–30 vote, enjoying robust bipartisan support, including backing from 18 Democrats.
The Risk Reduction Rationale
The allure of these bills isn’t solely about growth. Bitwise’s Chief Investment Officer, Matt Hougan, emphasizes the potential for risk reduction—a factor that has kept institutions wary. The crypto sector’s reputation has been tarnished by high-profile collapses of entities like FTX, Terra/Luna, and Mt. Gox, among others. These weren’t merely business failures; they were failures of oversight, often occurring in jurisdictions with lax regulations.
Stronger U.S. laws, Bitwise argues, could provide a bulwark against such implosions, making extreme market crashes less common. The report acknowledges that while not every scandal could have been prevented, many could have been mitigated with robust regulatory frameworks.
Wall Street’s Crypto Conundrum
As the legislative wheels turn, the stakes are high for Wall Street. The financial giants, eager to expand their crypto footprints, are likely watching closely. Bitwise suggests that as major institutions like BlackRock and JPMorgan become entrenched in crypto, political support for the sector will naturally grow. When millions of Americans are invested, the line between traditional finance and the wild world of digital assets blurs, making the cryptocurrency ecosystem too integral to simply unwind. This follows a pattern of institutional adoption, which we detailed in our analysis of Germany’s top banks entering the crypto space.
Yet, questions remain. Can these legislative measures truly safeguard investors, or will clever actors find new loopholes to exploit? And as crypto becomes more mainstream, how will traditional finance adapt to this seismic shift? The passage of these bills could mark the beginning of a new era—one where the lines between digital and traditional assets are increasingly indistinguishable, and where crypto is not just an outlier, but a core component of the financial system.
As the House prepares to vote, all eyes are on Washington. The outcome could very well set the stage for the next chapter in the ever-evolving narrative of cryptocurrency. Whether the genie is indeed out of the bottle and what that means for the industry remains to be seen. But one thing’s for sure: the crypto world is watching—and waiting.
Source
This article is based on: Crypto is Going Mainstream and ‘You Can’t Put the Genie Back in the Bottle,’ Bitwise Says
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
