Bitwise CIO "Bitcoin (BTC) Rally Unaffected by Bill Failure"

▲ Bitcoin (BTC), Bull Market/AI Generated Image

Despite the failure of the comprehensive virtual asset regulation bill in the U.S. Congress, it has been diagnosed that the structural momentum of the cryptocurrency bull market remains unbroken, thanks to infrastructure development by traditional financial institutions and policy support from regulatory authorities.

According to Benzinga on September 17 (local time), Matt Hougan, Chief Investment Officer (CIO) of virtual asset management firm Bitwise, revised his stance after the U.S. cryptocurrency market structure bill failed to pass a Senate vote, stating that the virtual asset bull market no longer entirely depends on the passage of that bill.

In a procedural vote in the U.S. Senate, the U.S. cryptocurrency market structure bill garnered only 49 affirmative votes, falling short of the 60 votes required for passage. CIO Hougan pointed out, "If the bull market had depended on the bill's passage, a drop in the probability of the bill passing should have led to a price crash, but the market moved in the exact opposite direction." Indeed, while Bitcoin (BTC) price rose from around $57,950 in early July to over $80,000 in early September, the predicted probability of the bill passing by year-end, as compiled by prediction markets, plummeted from 39% to 14%.

Wall Street financial firms have not ceased expanding blockchain infrastructure despite legislative uncertainties. Robinhood Markets (HOOD) launched its own blockchain, Morgan Stanley (MS) introduced a Solana (SOL) ETF, and the Depository Trust & Clearing Corporation (DTCC) began clearing tokenized stock transactions without congressional legislation. The explanation for the financial sector's bold moves is the trust placed in the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which are expected to maintain a pro-virtual asset stance until 2029.

Paul Atkins, SEC Commissioner, has emphasized that the SEC is prepared to establish its own regulations to address the same issues as the U.S. cryptocurrency market structure bill. Mike Selig, CFTC Commissioner, also stated that the CFTC has begun drafting rules to support new areas of finance, confirming regulatory support from the administration. It is expected that as the short-term political risk of legislative delays enters a resolution phase, institution-led ecosystem expansion with clear regulatory guidelines will gain further momentum.

[Key Article Summary]

-Matt Hougan, Bitwise CIO, analyzed that the cryptocurrency bull market's momentum remains valid despite the failure of the U.S. cryptocurrency market structure bill.

-Major Wall Street financial firms have continued to expand their own blockchain and tokenized financial infrastructure, regardless of congressional legislation.

-Based on regulatory support from the pro-virtual asset SEC and CFTC, institution-led structural growth is expected to continue.

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