Bitwise: Clear U.S. Crypto Rules Could Trigger Institutional Surge
Upcoming legislation in the U.S. could transform the crypto landscape by removing a key barrier to institutional adoption, according to a new report from Bitwise Asset Management.
The firm argues that while the technology and infrastructure for crypto are already in place, what’s missing is regulatory clarity. With well-defined rules, major financial players like JPMorgan, BNY Mellon, and Nasdaq could finally move into the space in full force—bringing billions in capital and accelerating the migration of traditional assets onto blockchain rails.
“Washington holds the key,” Bitwise wrote in its Monday report. “The infrastructure is ready. The demand is there. The next step is regulation.”
Two critical bills are now on the table in Congress. The CLARITY Act aims to define the structure of crypto markets, while the GENIUS Act sets guidelines for stablecoins. The GENIUS Act has already passed the Senate with strong bipartisan support. The CLARITY Act, however, is still being negotiated, with some Senate Democrats calling for significant changes.
Bitwise CIO Matt Hougan believes the implications of these bills are profound: “If they pass, you can’t put the genie back in the bottle.”
According to Hougan, the legislation isn’t just about enabling growth—it’s about reducing risk. Many of the industry’s most damaging events, including the collapses of FTX, Celsius, and Terra/Luna, were made possible by regulatory gaps. While no ruleset can eliminate all risk, Hougan argues that clear oversight could have prevented much of the fallout.
Institutional hesitation has also been driven by crypto’s extreme volatility and the unpredictability of offshore platforms. U.S.-based regulation, Bitwise says, could help tame that volatility by providing investor protections and leveling the playing field.
The momentum in Washington appears to be shifting. With bipartisan support for crypto policy gaining traction, and Wall Street firms deepening their involvement, Bitwise sees a pivotal inflection point ahead.
“As giants like BlackRock and JPMorgan build their crypto infrastructure, and millions of investors gain exposure, crypto becomes increasingly woven into the fabric of the financial system,” the report concluded. “At that point, reversing course is no longer an option.”
