StableCoin law fails-hard summer for cryptocurrencies is imminent

Matt Hougan from Bitwise believes that the future of cryptocurrencies depends less on the markets than to issue Washington's ability to enable laws.

Despite the upward trend of Bitcoin and the favorable measures of the Trump government warned Hougan that the recent profits could be destroyed by changing management without concrete laws.

The optimism of Trump's choice-heated by deregulation, a proposal for a Bitcoin reserve and the withdrawal of the Sec-Razzien-has not yet been reflected in permanent legislative successes. Hougan fears that the congress will play a rare opportunity for a cross-party agreement, and says that the adoption could only bring the dynamics of the industry to a standstill until summer.

His greatest disappointment is the failure of legislation to stable coins. The Genius Act was about to withdraw their support at the last minute as nine democratic senators, including previous supporters, due to concerns about money laundering and national security. Hougan suspects that political position fights and not content are responsible for this.

The bill was advertised as a great profit-it promised dollar stability, regulatory clarity and a new financial infrastructure. Instead, he is now caught in the same party -political blockade and threatened the more comprehensive reforms of the cryptom market. According to Hougan, the efforts to merge the rules for stable coins with the legislation of the market structure could only make the chances of success more difficult.

Meanwhile, the Democrats in the House of Representatives are planning to boycott an important hearing on crypto framework conditions, which further cloudy the prospects for progress. Despite the tensions, Hougan believes that the topic of stable coins will not disappear from the agenda. The advantages are too great to ignore them.

If the legislator does not act soon, the sector could get into a difficult phase. But even if only modest legislation happens to congress, according to Hougan, this could trigger a strong upswing.