Matt Hougan, the Chief Investment Officer of Bitwise Asset Management, believes that the regulatory environment for Bitcoin is improving, and this trend will not change regardless of whether Trump or Harris wins the U.S. presidency, which is particularly beneficial not only for Bitcoin but also for other cryptocurrencies.
The price of Bitcoin has recently surged close to its historical high, partly driven by momentum from the U.S. election (which will be held on November 5).
"Of course, in the short term, cryptocurrencies lean more towards a Trump victory rather than Harris, but in fact, Bitcoin can succeed without Washington." Hougan said in an interview with Yahoo Finance on Wednesday: "Institutions are entering this space, adoption rates are increasing, ETF fund flows are happening, and I think it will go up regardless."
"I think the most important thing for bitcoin is that the election happens," Bitwise Asset Management CIO @Matt_Hougan says. "Regardless of a Trump win or a Harris win, the regulatory setting for bitcoin is improving, and I think that's what you're seeing reflected in the price." pic.twitter.com/BXAkbg3vyG
— Yahoo Finance (@YahooFinance) October 30, 2024
Regulatory clarity
That said, Matt Hougan believes that a Trump victory will have a greater impact on Ethereum and other altcoins, stating, "Regulatory clarity is actually more important for so-called altcoins." He said:
"These coins are more susceptible to regulatory risk, so I expect altcoins to rebound in the event of a Trump victory, possibly even more than Bitcoin's rebound. But in any case, I believe both will rise."
Hougan stated that since the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have declared Bitcoin a commodity and accepted Bitcoin spot ETFs, Bitcoin has clearer regulation than Ethereum and other digital assets. He noted that the situation for Solana ($SOL), Aptos ($APT), and other altcoins is not the same.
Hougan said: "I speculate that if we have a new SEC, this will become clear and drive institutional adoption, and we will see a rising tide lifting all boats." He expects that regardless of the scenario, 2025 will be better for cryptocurrencies than 2024.
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