Trump's pro-crypto moves, including Bitcoin reserve, face setback without Congressional backing.

The $2.8 trillion crypto market could be headed for a rough summer, and not because of Bitcoin’s price swings or any sudden altcoin volatility. Instead, it’s the threat of political inaction in Washington that could throw cold water on the rally, according to Bitwise CIO Matt Hougan.

In a sharply worded blog post, Hougan warned that despite bullish momentum – from Bitcoin’s recent all-time high to the Trump administration’s pro-crypto stance – regulatory indecision could derail the rally. Even a single bill passed into law would lock in political support and ensure crypto’s continued ascent.

“People can derail crypto. More precisely, the Politicians could derail crypto,” Hougan wrote, highlighting the need for bipartisan legislation to solidify progress.

His concern is about Congress missing the moment. Despite regulatory rollbacks and favorable appointments, nothing is set in stone without legislative action. A lasting framework is the only way to protect these gains and build long-term confidence, especially among institutional investors.

One bill in particular has captured attention: the GENIUS Act, a stablecoin framework backed earlier by Coinbase CEO Brian Armstrong. It surprisingly cleared the Senate Banking Committee with rare bipartisan support in March.

But by early May, momentum collapsed. Nine Senate Democrats pulled their support, citing concerns over anti-money laundering (AML) and know-your-customer (KYC) measures.

Hougan believes this sudden reversal has more to do with political calculations than actual policy flaws. He also cautioned that combining stablecoin regulation with broader market reforms is a risky bet.

“This is the perfect example of the enemy of the good,” he added.

Despite the regulatory roadblocks, Hougan remains firmly bullish on crypto’s future. He’s forecasting fresh all-time highs not only for Bitcoin but also for Ethereum (ETH) and Solana (SOL).

But here’s the catch: without legal clarity – especially around stablecoins and market structure – institutional capital may stay on the sidelines. That means fewer inflows, more volatility, and potentially, a delayed or diluted bull run.