At Consensus 2025 in Toronto, CoinDesk’s longest-running event, the conversation surrounding cryptocurrency was less about market movements and more about momentum in Washington.
During Nasdaq TradeTalks with host Jill Malandrino, Bitwise CIO Matt Hougan and CEO of AlphaPoint, Igor Telyatnikov both emphasized that legislative clarity is now the most critical factor in determining crypto’s future as a mainstream financial asset class.
Hougan, a veteran of the industry, pointed to the significant shift in regulatory tone over the past six months. “We had a very hostile SEC. Now we have a very supportive SEC,” he noted, referencing recent legal decisions and broader institutional acceptance of digital assets.
However, while progress on the regulatory front is evident, he stressed that enforcement relief and positive sentiment aren’t enough. “To get to the next level, we do need legislation,” he said firmly.
The clearest example of this gap is the stalled stablecoin bill in Congress. Initially expected to pass easily, the bill now faces an uncertain path. “Turns out, it’s not a slam dunk,” Hougan remarked.
The delay is emblematic of broader legislative inertia surrounding digital assets, even as market demand and institutional readiness continue to grow. “If crypto is really going to become a mainstream institutional asset, we need that strong legislative footing,” he emphasized.
Without stablecoin regulation, market structure laws, and a unified federal framework, crypto remains in a state of legal ambiguity. Institutions that might otherwise be eager to engage are held back by unclear rules and inconsistent interpretations.
Hougan warned that without progress on these fronts, the crypto industry could face prolonged volatility. “I think we’re off to the races on a multi-year bull market if we get those,” he said. “If not, things could be a little choppy.”
Telyatnikov brought an international perspective to the discussion. He’s seen firsthand how legislation can make or break innovation. He noted that Canada, where exchanges operate under established licenses, has become a model of how clarity can drive growth. A partner exchange, AlphaPoint helped launch years ago is now one of the most prominent in Canada, even sponsoring the NHL playoffs. That kind of mainstream success, he explained, is only possible in jurisdictions with clearly defined regulatory expectations.
In contrast, the U.S. remains bogged down by uncertainty. Telyatnikov said that many financial institutions are watching developments closely, especially as firms like Robinhood and Coinbase continue to grow their crypto offerings. “They see Robinhood coming. They don’t have a crypto offering. Financial institutions have to figure that out,” he said. But until legislation provides a clear operating environment, many will remain on the sidelines.
Beyond investment, Telyatnikov underscored a deeper, more human consequence of legislative inaction: missed opportunities for global financial inclusion. He highlighted AlphaPoint’s work in El Salvador on the Chivo wallet, the national Bitcoin-based financial platform. In a country where 70% of the population is unbanked, Chivo has become the largest financial institution by number of accounts. This kind of innovation, he said, is only sustainable when supported by clear, enabling legal frameworks.
Malandrino noted the risk of brain drain if legislation lags. The U.S. has already seen some companies relocate or expand into more crypto-friendly jurisdictions. While some are beginning to return, the momentum could quickly reverse without policy support. Both Hougan and Telyatnikov agreed that the stakes are high. The innovation, infrastructure, and investment are ready. What’s needed now is a legal foundation to unlock the next chapter.
“I’m still hopeful we’ll get there this year,” Hougan concluded. “But I’m more worried than I was at the start of the year.”
