According to Hougan, the CLARITY bill, which prohibits stablecoin holders from receiving returns from issuers in the form of annual interest, will determine the scenario for the development of the crypto market.
«If the bill is passed in the form that satisfies traders and investors, the market could rise sharply. Funds and companies will proceed from the fact that the growth of stablecoins and tokenization is guaranteed, and will begin to incorporate this future into prices already today», — explained the top manager of Bitwise.
The investment director believes that the chances of passing the bill within a year are high, as the current administration of the White House is fulfilling promises made to the crypto industry, which is already receiving support from the authorities. If the bill is not passed, support for cryptocurrencies may weaken, laments Hougan. After all, in his opinion, the market will need several years to make technologies indispensable for Americans and the traditional financial system.
Currently, the issuers of the most popular dollar-pegged tokens like Circle and Tether are placing reserves in U.S. Treasury securities at 3.6% per annum and returning about 3.5% to stablecoin holders. American commercial banks are currently paying depositors much less — the yield may even be around 0.1% per annum.
The CLARITY bill was supposed to undergo hearings in the Senate Banking Committee in mid-January, but the meeting has been postponed indefinitely.
Earlier, analysts from the hedge fund Pantera Capital stated that the crypto market has entered a phase where the use of borrowed funds is decreasing, and the quotes of major cryptocurrencies have undergone a deep correction.