Bitwise: Why Washington's "Crypto Week" is Significant for Crypto Assets

Author: Matt Hougan, Chief Investment Officer of Bitwise; Translated by: AIMan@Jinse Finance

Abstract:

This week, several bills supporting cryptocurrency are making progress in Washington, and the era of cryptocurrency will be completely transformed, which is a good thing.

Want to know why Bitcoin keeps breaking its historical highs?

There are many reasons, including the ongoing demand from institutional investors and corporate finance departments. But one reason that has not received enough attention is that Washington is ushering in "Crypto Week," and in the coming days you will see a plethora of headlines supporting cryptocurrency.

I'm not making this up. On July 3rd, the U.S. House of Representatives released a brief but impactful press release, officially declaring the week of July 14th as "Crypto Week" and committing to advancing three key cryptocurrency bills:

The GENIUS Act: Providing a Clear Regulatory Framework for Stablecoins

The CLARITY Act: A Comprehensive Framework for Regulating Crypto Assets

"Anti-CBDC Surveillance State Act": Prohibits the creation of central bank digital currency in the United States.

The "GENIUS Act" has been passed by the Senate, and if it can be smoothly voted through in the House of Representatives, it will be submitted to the President for signing, with the potential to become the first significant cryptocurrency legislation in U.S. history.

The "CLARITY Act" and the "Anti-CBDC Act" still need Senate approval, but the passage of either in the House of Representatives would be a significant milestone.

Why This Is Significant for Cryptocurrency

I firmly believe that after the passage of the bill supporting cryptocurrencies in the United States, it will significantly promote the development of cryptocurrencies and reduce their future risks.

The impacts on development are easy to understand and widely discussed. Clear cryptocurrency legislation will better incentivize large financial institutions to engage in the crypto space, bringing billions of dollars in investments to crypto assets and guiding trillions of dollars in traditional assets into the blockchain orbit. If you have ever wondered what changes would occur in cryptocurrency if JPMorgan, Bank of New York Mellon, and Nasdaq could freely participate in this field, the answer is about to be revealed.

But I believe that the more significant impact of this legislation lies in the risk aspect and how it will change the way crypto assets are traded.

One of the biggest obstacles facing cryptocurrencies is the major failures that continue to be exposed: FTX, Luna, Three Arrows Capital, Genesis, Celsius, QuadrigaCX, BitConnect, Mt. Gox.

Every failure hinders the development of the cryptocurrency industry and lowers investor confidence. These failures are largely due to the lack of clear regulation in the cryptocurrency space.

Offshore exchanges like FTX have a lack of internal controls and numerous audit loopholes. If there were clear regulations allowing for a safer version to exist in the onshore market, they would not have thrived at all.

If large banks can custody crypto assets, investors will not avoid cryptocurrencies due to custody issues.

If there were regulations like the "GENIUS Act", Ponzi stablecoins like Luna would not appear at all.

Clearly, explicit rules cannot prevent all scandals, as evidenced by the traditional financial industry. Clear rules did not stop Bernie Madoff's fraud, nor did they prevent the series of misconduct that led to the collapse of Credit Suisse. However, rules do indeed help a lot.

One issue that makes investors hesitant about cryptocurrencies is that we often see significant drops in Bitcoin and other crypto assets. Over the past 15 years, Bitcoin has been the best-performing asset globally, but it has also experienced seven declines of over 70%.

For professional investors, it is difficult to purchase an asset that may plummet by 70% due to an unexpected scandal occurring in an unregulated offshore location. With Washington reviewing these cryptocurrency bills, I believe the likelihood of such scandals occurring will significantly decrease.

The passage of strong cryptocurrency legislation will not eliminate market volatility. However, if these laws are enacted, I believe that cryptocurrencies will no longer experience declines of over 70%.

Why I'm Not Worried About the Political Future of Cryptocurrency

People often ask when discussing cryptocurrency legislation: Aren't you worried that the next government will reverse these achievements?

In short: Don't worry.

Contrary to media reports, cryptocurrency is one of the few policy issues that has bipartisan support. The "GENIUS Act" passed in the Senate with a vote of 68 to 30, with 18 Democratic senators voting in favor. This is one of the most bipartisan-supported bills to pass in the Senate during the 2025 congressional session. There are many reasons for this bipartisan support, including the popularity of cryptocurrency among young voters. However, the most significant reason may be the support from the U.S. financial industry — traditionally a major donor to the Democratic Party, which is eager to capitalize on the growth and opportunities presented by cryptocurrency.

This financial motivation is at the core of my belief that Washington's support for cryptocurrency has long-term sustainability. As more investors and companies engage in the cryptocurrency space, it becomes increasingly difficult for politicians to unite against it.

Think about it: today, almost all major financial institutions in the United States are engaged in cryptocurrency-related business to some extent. If BlackRock, JPMorgan, Morgan Stanley, along with thousands of American companies and millions of American citizens have significant investments in the cryptocurrency space, it is hard to imagine that politicians would reverse this trend.

Institutional adoption of cryptocurrencies (including trading of crypto spot, futures, and derivatives)

Source: Bitwise Asset Management data (as of June 30, 2025)

In other words: once the magic bottle is opened, it can never be closed again. If these bills are passed by Congress during "Crypto Week" and ultimately signed into law, we will enter a new era.

Cryptocurrency is becoming mainstream, risks are continuously decreasing, and Wall Street is making a big push into this field.

No wonder we are at an all-time high.