US Regulatory Progress: A 'Million Small Steps' to Unlocking Crypto Access

Bitwise CIO Matt Hougan does not think that recent regulatory developments in the US will unlock Wall Street's doors to crypto overnight. In an interview, he described the process as requiring 'a million small steps,' many of which are 'deeply unsexy.' The SEC's Regulation Crypto Assets proposal, unveiled on August 18, offers a framework for certain crypto investment contracts with exemptions up to $75 million over 12 months.

The recent good week for crypto, Hougan said, was just the start. He pointed to the SEC proposal, President Trump's comments at a White House event supporting the CLARITY Act, and a Financial Accounting Standards Board (FASB) project that could clarify whether certain stablecoins qualify as cash equivalents.

Hougan used the example of Bitcoin ETFs to illustrate his point. The initial reaction was that approval by the SEC in January 2024 would open the doors for all institutions. However, it took around two and a half years for access to become genuinely available, with large wealth-management platforms like Morgan Stanley and Bank of America expanding crypto access for advisors within the past year.