Please follow Washington, the encryption risks from Congress are increasingly rising.

I am very optimistic about the prospects of crypto assets this year. The current environment - with increasing institutional participation, improving regulatory conditions, and significant advancements in blockchain technology - is very strong.

My basic prediction is that this year, the trading prices of most Crypto Assets will hit historic highs, with Bitcoin breaking through 200,000 dollars.

But...

People often ask me what factors hinder the development of crypto assets. My answer is simple: people. More specifically, politicians.

After the November elections, the price of crypto assets rose, partly because people believe that Washington will take a positive stance on crypto assets. So far, this has indeed been the case. Since the Trump administration took office a hundred days ago, we have seen:

• The United States has established a strategic Bitcoin reserve, currently holding nearly 200,000 BTC.
• The White House has listed digital assets as a "national priority."
• The US SEC has dismissed almost all boring lawsuits related to Crypto Assets.
• The US SEC has revoked SAB 121 (a set of strict accounting rules for Crypto Assets) and allowed more banks and broker-dealers to operate in this field.
• "Chokehold Action 2.0" has ended, which cut off the services of Crypto Assets companies from traditional banks.
• Crypto Assets advocate Paul Atkins has been appointed as the new chairman of the U.S. SEC.
• Notable venture capitalist David Sacks has been appointed by the White House as the "Crypto and Artificial Intelligence Czar"

This is truly an incredible list. However...

We need legislation to consolidate our progress

The common point of the above measures is that they all originate from the White House. This means they can easily be overturned by future administrations.

To promote the development of Crypto Assets, we need Congress to pass legislation that incorporates the progress of Crypto Assets into the legal framework. The passage of at least one Crypto Assets bill by Congress would indicate that the Democrats and Republicans can reach a consensus on Crypto Assets issues, making it more difficult for future administrations to hinder the progress of Crypto Assets.

Entering this year, I thought this was a surefire move. Specifically, I expected Congress to quickly pass stablecoin legislation, paving a solid regulatory path for the largest financial institutions in the world to enter the stablecoin market.

After all, stablecoins offer something for everyone:

• They have broadened market access for Crypto Assets.
• For Wall Street, they have created a new profit center.
• For Washington, they are large buyers of U.S. Treasury bonds and also a tool for expanding the global dominance of the dollar.

Win, win, win, triple win.

Until recently, we were still smoothly moving towards victory.

In mid-March, the Senate Banking Committee passed a leading stablecoin bill called the "GENIUS Act" with a vote of 18 in favor and 6 against. In this vote, five Democratic committee members crossed party lines to support the bill. Senate Minority Leader Chuck Schumer (Democratic Senator from New York) even expressed his support.

But last weekend, nine Democrats - including four of the five Democrats who voted to support the bill in the Banking Committee, as well as Schumer himself - withdrew their support for the bill. They stated that the bill was lacking in protections such as anti-money laundering and "Know Your Customer" (AML/KYC).

This change in attitude reflects the shifting political environment in Washington. The revised version of the bill is actually tougher on anti-money laundering/know your customer (AML/KYC) and other aspects compared to the version passed by the banking committee, indicating that the Democrats' shift in attitude is more related to the declining approval ratings of President Trump and the increasing discussions surrounding his conflicts of interest related to Crypto Assets than to any substantive concerns.**

Politics is inherently chaotic. But many times, it is even more chaotic than it should be.

Equally futile is the fact that the power of the crypto industry is lobbying to combine stablecoin legislation with broader market structure legislation to create a large and beautiful crypto bill.

This is simply a negative example of good practices. Legislative market structure is crucial for the long-term future of Crypto Assets, but conflating various factors will make the passage of any bill more difficult.

What will happen next

I believe the stablecoin bill will eventually be passed. The benefits of stablecoins to the United States, the dollar, merchants, entrepreneurs, and other parties are so obvious that trivial political maneuvering will not hinder its progress.

At least I hope so.

The next few days and weeks will be full of challenges. If the legislation fails, this summer may be challenging for Crypto Assets. But if Washington can work together, I believe the bull market will be unstoppable.