US policy change could open $20 trillion to crypto

Bitwise CIO Matt Hougan Bitwise suspects the crypto market is underestimating the significance of the White House's changing stance. Had the consequences been priced in, there would have already been new all-time highs for Bitcoin and others. In recent weeks, the political landscape in the U.S. has shifted to a much more positive attitude toward crypto, as Hougan explains in a memo.

In addition, the crypto industry can expect a huge influx of capital from the financial advisory sector once the U.S. regulators clear the final uncertainties. This sector has more than US$20 trillion at its disposal.

In the past, crypto was a partisan issue, supported by Republicans and opposed by Democrats. Now, however, useful regulatory regulations would find bipartisan support.

Recently, the U.S. House of Representatives voted in favor of FIT21, a new framework for crypto. However, this now needs final approval by the U.S. Senate.

US President Biden also vetoed the repeal of SAB121. The SEC directive makes crypto custody unattractive to U.S. banks.

Still, Hougan is optimistic: "If you think BlackRock's entry has had a positive impact on the crypto market, imagine if all of Wall Street accepted cryptocurrencies [...]."

Former President Donald Trump has recently made several positive comments about Bitcoin and crypto. Biden also seems to be slowly changing his restrictive stance.