If you've ever wondered what keeps crypto executives up at night, it's probably not Bitcoin volatility. It's the regulatory patchwork quilt that is America's 50-state system. Thomas Farley, CEO of Bullish (BLSH), made that clear during the company's third-quarter earnings call on Wednesday, when he outlined why the pending cryptocurrency market structure bill could be transformational for the industry.
One Federal Framework To Rule Them All
Farley expressed confidence that the bill will eventually become law, citing what he sees as "bipartisan support" in Congress. But his real enthusiasm centered on one particular feature: preemption of state laws.
"I think it will be very helpful for the crypto industry, largely because of preemption, in other words, not having to go to each of the 50 states to get their very particular, in some cases, approvals for operating in the crypto business," Farley explained.
For infrastructure providers like Bullish, this would be a "boon." Instead of navigating a labyrinth of different state requirements—each with its own quirks, timelines, and approval processes—companies could operate under a single federal regulatory umbrella. It's the difference between taking one licensing exam versus 50 different ones, each in a slightly different language.
Farley also highlighted that the "legal certainty" provided by the legislation could attract institutional players, tokenization participants, and asset issuers. He compared it to the clarity expected from the GENIUS Act on the stablecoin side, suggesting that clear rules tend to bring serious money to the table.
Timeline And Bipartisan Momentum
The optimism around this legislation isn't unique to Farley. Last month, Coinbase Global Inc. (COIN) CEO Brian Armstrong expressed similar sentiments, noting that both Democrats and Republicans are working "hard" to push it through.
The Senate Agriculture Committee released a bipartisan draft of the legislation earlier this month, outlining clearer oversight roles for the CFTC and SEC in the cryptocurrency market through a unified federal framework. The current expectation is that the bill will advance through committees by late 2025, with a full Senate vote likely in early 2026.
That timeline might seem distant, but in legislative terms, it's practically breakneck speed for something as complex as crypto regulation.
Strong Quarterly Performance Amid Regulatory Optimism
Meanwhile, Bullish delivered solid financial results. The company reported third-quarter revenue of $76.5 million, surpassing analyst estimates of $71.2 million. Earnings came in at 10 cents per share, matching expectations.
The results caught the attention of Cathie Wood's Ark Invest, one of Bullish's prominent investors. On Wednesday, Ark doubled down by purchasing approximately $16.9 million worth of the company's shares across three of its ETFs: the Ark Fintech Innovation ETF (ARKF), ARK Innovation ETF (ARKK), and ARK Next Generation Internet ETF (ARKW).
Stock Movement And Market Position
Despite the revenue beat and Ark's vote of confidence, BLSH shares had a mixed day. The stock closed 3.63% lower at $36.39 during Wednesday's regular trading session, though it recovered somewhat in after-hours trading, rising 1.26% to $36.85.
Market data showed that the stock had a weaker price trend across short, medium, and long-term periods compared to fellow cryptocurrency exchange Coinbase Global Inc. (COIN).
For Farley and Bullish, though, the immediate stock movements may matter less than the longer-term regulatory trajectory. If the market structure bill passes as expected, the company could find itself operating in a fundamentally different environment—one where the path to compliance runs through Washington, not through 50 state capitals.