Bitwise: New laws will bring the crypto market mainstream

For many years, regulatory ambiguity has been one of the biggest hurdles to the development of the crypto industry in the United States. However, according to a new analysis from asset management firm Bitwise, this phase may be about to end, opening up a new era of widespread adoption.

On July 16, Bitwise put forth an optimistic assessment, arguing that crypto-related legislation soon to be passed in the U.S. will likely be the catalyst that pushes digital assets fully into the mainstream.

1. Opening the Floodgates for Wall Street Capital

The main argument from Bitwise is that "regulatory clarity" will act as a powerful catalyst. Once a clear legal framework is in place, giant financial institutions like JPMorgan, BNY Mellon, and the Nasdaq exchange, which have been largely watching from the sidelines, will have the confidence to fully deploy into the crypto space.

This participation is projected to bring billions of dollars in new investment to the market. More importantly, it could also facilitate the migration of trillions of dollars in traditional assets to the blockchain via tokenization (RWA), one of the industry's most anticipated narratives.

2. Regulation as a Stabilizing Force

Bitwise also makes a noteworthy point: past seismic incidents in the crypto industry (such as the collapse of major exchanges) occurred mainly due to a lack of regulation. An environment without clear rules enabled risky and non-transparent behavior.

Therefore, once new laws are passed, they are expected to significantly minimize extreme volatility and systemic risks. This will make the digital asset class more attractive to a broader range of conservative and institutional investors, thereby creating a more mature and stable market.

3. A Political Tipping Point

Bitwise's optimism is not just theoretical. They point to the fact that political pressure on the industry is decreasing. A clear demonstration of this is the GENIUS Act for stablecoins, which received strong bipartisan support in the Senate with a 68 to 30 vote.

This growing political consensus, combined with the accelerating pace of entry from Wall Street and other mainstream institutions, indicates a trend that is now "likely irreversible." Bitwise believes that in the future, crypto assets will become deeply embedded in the financial system, making them an indispensable part of the global market.