US political change could expose crypto to $20T industry – Bitwise

After US regulators clear legal doubts, the crypto space could be exposed to trillions in the financial advisory industry, says the chief investment officer of crypto asset manager Bitwise.

Regulatory uncertainty is the main reason financial advisors haven't increased exposure to crypto over the past five years, Bitwise Chief Investment Officer Matt Hougan wrote in a June 4 post.

Hugan thinks the U.S. is finally moving toward regulatory transparency, which could unlock the country's $20 trillion financial advisory industry.

Imagine how much of that $20 trillion will go into crypto when the big hurdle is lifted.

“If you think BlackRock's move into the crypto space has had a positive impact on the market, imagine if all of Wall Street accepted crypto as a normal part of the market,” he added.

Hugan said the “shift” began last month when Democrats “crossed the road” to repeal Labor's Accounting Bulletin 121, and again, when the House passed the Financial Innovation and Technology for the 21st Century (FIT21). as a victory.

The Securities and Exchange Commission also approved spot ether (ETH) exchange-traded funds (ETFs) on May 23, after months of analysts had speculated it would knock them back.

“It shows that crypto still has a long way to go,” Hugan said, opposing President Joe Biden's repeal of SAB 121.

But even this is a minor setback. We have been riding the crypto upwind for a decade,” he added.

The market is not ready for what's next.

Hugan believes there is a lot of “alpha” to be captured in the crypto market, which he says is largely untouched by “those outside the crypto bubble.”

He continues to see “people's eyes glaze over” when he talks about crypto-related political developments at conferences.

Related: Many scary cryptocurrencies are fueled by ‘crazy speculation', warns Bitwise exec

“If people understand the problems of change [Washington D.C.]”The crypto market will be at a new all-time high,” Hugan argued.

With the rejection of SAB 121 making it unlikely that FIT21 will pass the Senate before the November election, and the approved spot ether ETFs have yet to launch, Hugan acknowledged that “no policies have changed in Washington yet.”

“The tide has turned, but the water is not yet in. He said, “Wake me up when the deed is done.”

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