‘You Can’t Undo It Now’ — Bitwise Says Crypto’s Mainstream Moment Has Arrived

Bitwise: Crypto Regulation in the U.S. Could Unlock Billions in Institutional Capital

A wave of institutional investment could be on the horizon if Congress advances two major crypto bills, according to Bitwise Asset Management. In a report published Monday, the firm argued that clear regulation is the missing piece keeping major financial institutions from fully committing to digital assets.

“The infrastructure is already built,” Bitwise wrote. “It’s Washington’s green light that’s missing.”

This week, lawmakers are expected to vote on two pivotal bills: the CLARITY Act, which would define crypto market structure, and the GENIUS Act, aimed at regulating stablecoins. The GENIUS Act has already passed the Senate with significant bipartisan support. The CLARITY Act, however, still faces hurdles, including recent calls for revision from senior Senate Democrats.

Bitwise CIO Matt Hougan said the moment could mark a fundamental shift for the industry. “If these bills pass, you can’t put the genie back in the bottle,” he said.

Hougan emphasized that regulatory clarity won’t just drive capital flows—it will reduce systemic risk. He pointed to the long list of high-profile crypto collapses, from Mt. Gox and Celsius to Terra/Luna and FTX, as largely stemming from a lack of oversight. While regulation wouldn’t have prevented every failure, he argued, it would likely have stopped many.

According to Bitwise, the absence of clear rules has also amplified crypto’s notorious volatility. Sharp drawdowns and offshore uncertainty have kept institutions on the sidelines. But a stable, U.S.-regulated environment could significantly reduce that risk and help mature the asset class.

Momentum appears to be building in Washington. The bipartisan support for the GENIUS Act indicates growing political will to establish a regulatory framework. Bitwise believes that as firms like BlackRock and JPMorgan continue building in crypto, the industry will become too systemically integrated to ignore—or reverse.

“Crypto is moving into the financial mainstream,” the report concluded. “And with the right legislation, the institutional floodgates could finally open.”