According to Bitwise’s investment head, the crypto space could potentially tap into the trillions in the financial advisory industry if United States regulators address legal uncertainties. Matt Hougan, the chief investment officer at Bitwise, highlighted the regulatory ambiguity as the main obstacle preventing financial advisors from increasing their exposure to crypto assets over the past five years.
In a post on June 4, Hougan expressed optimism about the U.S. moving towards regulatory clarity, which could pave the way for the country’s $20 trillion financial advisory industry to embrace crypto. He emphasized the potential impact of Wall Street fully accepting crypto as a standard part of the market, drawing parallels to BlackRock’s entry into the crypto space.
Hougan pointed to recent developments, such as Democrats joining forces to repeal Staff Accounting Bulletin 121 and the House passing the Financial Innovation and Technology for the 21st Century Act (FIT21), as signs of a positive shift. Additionally, the approval of spot Ether exchange-traded funds by the Securities and Exchange Commission on May 23 was seen as a significant milestone after much speculation.
Despite President Joe Biden’s veto of the SAB 121 repeal, Hougan acknowledged that the crypto industry still has a long journey ahead but remains resilient. He believes there is untapped potential in the crypto market, with significant opportunities for those willing to venture beyond the traditional financial landscape.
Hougan stressed the need for broader awareness of crypto-related political developments, suggesting that increased understanding could lead to new all-time highs in the market. While challenges remain, such as the uncertain fate of FIT21 in the Senate and the pending launch of spot Ether ETFs, Hougan remains hopeful for positive changes in Washington.
Looking ahead, Hougan sees immense possibilities in the crypto market and urges stakeholders to stay informed and engaged. He believes that the industry is poised for growth, with the potential for significant advancements in the near future.