Bitwise: “If the market structure bill fails, prolonged uncertainty for the crypto industry will continue”

A warning has emerged that if the crypto market structure bill fails to pass the U.S. Congress, the industry as a whole could face long-term regulatory uncertainty.

According to Cointelegraph on the 28th (local time), Bitwise Chief Investment Officer (CIO) Matt Hougan said in a recent investor note that the crypto market structure bill currently pending in the Senate is a key mechanism to lock the current pro-crypto regulatory stance into law. He warned that if the bill is derailed, the regulatory environment could shift abruptly with future changes in administration.

Hougan said that the roughly three years until President Donald Trump’s term ends in 2029 is the time the crypto industry has been given. He said, “If during this period crypto does not become an essential part of Americans’ daily lives and the traditional financial system, political change could translate into a major setback for the industry.”

In the Senate, the Banking Committee and the Agriculture Committee are continuing discussions over a market structure bill that would clarify the supervisory authorities of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). However, bipartisan agreement has been delayed due to differences over whether to include ethics provisions and restrictions on interest payments on stablecoins.

Hougan projected that market dynamics will diverge clearly depending on the bill’s trajectory. He said, “One is an early bull market driven by expectations of institutionalization, and the other is a wait-and-see phase in which real-world use must be proven amid regulatory uncertainty,” adding, “If the bill does not pass, the market will have to endure prolonged skepticism and regulatory friction.”

He also said that if the bill stalls, investors’ benchmarks will change. Hougan said, “In an environment without legislative support, real adoption becomes a more important yardstick than price appreciation,” adding, “If real-world use is not demonstrated, crypto could be perceived as a structure built on regulatory sand.”

Still, he leaned toward the possibility that Congress will ultimately pass a crypto market structure bill. While noting that the Trump administration has implemented a significant portion of its pledges related to the crypto industry, he added, “If legislation is delayed or fails, the industry should prepare for a slower and more arduous upward path.”