The crypto space could be exposed to the trillions in the financial advisory industry once United States regulators clear up legal uncertainties, says crypto asset manager Bitwise’s investment head.

Regulatory uncertainty has been the main reason why financial advisors haven’t increased exposure to crypto over the last five years, Bitwise chief investment officer Matt Hougan wrote in a June 4 post.

Hougan thinks the U.S. is finally moving toward regulatory clarity, which could open it up to the country’s $20 trillion financial advisory industry.

“Imagine, then, how much of that $20 trillion will go into crypto when the biggest barrier gets lifted.”

“If you think BlackRock’s move into the crypto space positively impacted the market, imagine if all of Wall Street accepted crypto as a normal part of the market,” he added.

Hougan said a “shift” started last month when Democrats “crossed the aisle” to repeal Staff Accounting Bulletin 121 and again when the House passed the Financial Innovation and Technology for the 21st Century Act (FIT21), which many in the crypto industry marked up as a win.

The Securities and Exchange Commission also approved spot Ether (ETH) exchange-traded funds (ETFs) on May 23 after months of analysts speculating that it would knock them back.

Hougan noted President Joe Biden’s veto of the SAB 121 repeal which he claimed showed “crypto still has a long way to go.”

“But even this is a minor setback. We’ve been sailing upwind for a decade in crypto,” he added.

Market not ready for what’s next

Hougan believes there’s a lot of “alpha” to capture in the crypto market, which he said is largely untouched by those “outside of the crypto bubble.”

He continues to see “people’s eyes glaze over” when he speaks about crypto-related political developments at conferences.

Related: Many terrible cryptocurrencies are trading at ‘crazy valuations,’ warns Bitwise exec

“If people understood the ramifications of the shift in [Washington D.C.], the crypto market would be at new all-time highs,” Hougan argued.

With SAB 121’s repeal vetoed, FIT21 unlikely to make it through the Senate before the November elections and the approved spot Ether ETFs still to launch, Hougan conceded that “no policies have actually changed in Washington yet.”

“The tide has changed, but the water hasn’t come in yet. Wake me up when the action happens.”

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