Belshe said the Clarity Act should be "really pretty non-controversial" and provide a legislative framework for the crypto market.
• He argued that clearer rules could help rein in crypto's "wild, wild west" and strengthen investor protections.
• Belshe said the U.S. needs to "kick up its game" with regions like South Korea and Europe racing ahead on crypto regulation.
BitGo CEO Mike Belshe said on Friday that Bitcoin's (BTC) price remains a useful gauge of investor excitement around crypto, but argued that its movements should not be viewed as a definitive measure of the broader digital-asset industry.
"I think it's human nature to be excited when prices are moving a lot, so that is what people tend to do," Belshe said in an interview with CNBC. "I think it's [BTC] to some degree a barometer of excitement about what's going on in the space at any point in time."
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Bitcoin's price traded flat in the last 24 hours, trading at around $79,500 at the time of writing. The apex cryptocurrency recovered to $80,000 in the previous session – its second time crossing that threshold this week, before paring gains. According to an analyst, market reaction to the upcoming keynote speech by the new Fed chair, Kevin Warsh, at Jackson Hole will help determine whether Bitcoin can sustain above the $80,000 mark.
Belshe said that his focus remains on the longer-term growth of the digital-asset ecosystem rather than short-term Bitcoin price movements. "We're in this for the long term," he said. "It's going to go up tremendously at certain times, down at other times, but it's constantly growing."
Bitcoin Price Is Only One Part Of The Crypto Story
Belshe pointed to the growing participation of traditional financial institutions as a more important indicator of the industry's development. He said the underlying investment thesis for Bitcoin continues to expand, creating demand for products and infrastructure built around digital assets.
"The thesis behind Bitcoin continues to grow, and so all these products behind it grow," Belshe said. "We used to have nothing going on. Now we've got I don't know five or six different models."
He added that firms like Morgan Stanley, Charles Schwab, Citigroup and the Depository Trust & Clearing Corporation are announcing plans related to digital assets and tokenization.
BitGo CEO Says Clarity Act Should Be 'Pretty Non-Controversial'