Stablecoin Bill Collapse Signals Rough Summer Ahead for Crypto

Bitwise’s Matt Hougan believes crypto’s future hinges less on markets and more on Washington’s ability to legislate.

Despite Bitcoin’s upward trajectory and favorable executive moves under the Trump administration, Hougan warns that without concrete laws, recent gains could be undone with a change in leadership.

The optimism that followed Trump’s election—fueled by deregulation, a proposed Bitcoin reserve, and the rollback of SEC crackdowns—has yet to translate into durable legislative wins. Hougan fears Congress is squandering a rare window of bipartisan alignment, saying a failure to pass even one crypto bill could stall the industry’s momentum heading into summer.

His biggest frustration: the breakdown of stablecoin legislation. Once poised for passage, the GENIUS Act faced a surprise reversal when nine Senate Democrats, including prior supporters, pulled out over last-minute concerns tied to AML and national security. Hougan suspects political posturing, not policy substance, is to blame.

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The bill had been pitched as a broad win—offering dollar stability, regulatory clarity, and new financial infrastructure. Instead, it’s now caught in the same partisan gridlock threatening broader crypto market reforms. Efforts to merge stablecoin rules with market structure legislation, Hougan argues, may only complicate chances of success.

Meanwhile, House Democrats are reportedly planning to boycott a key hearing on crypto frameworks, further dimming prospects for progress. Yet despite the tension, Hougan maintains that the stablecoin issue isn’t going away. The benefits, he says, are too big to ignore.

If lawmakers can’t act soon, the sector may enter a rough patch. But if even modest legislation clears Congress, Hougan believes it could reignite a powerful bull run.

Alexander Stefanov