Crypto’s Image Takes Beating in Washington, Dimming Fans’ Hopes

Just a few months ago, crypto enthusiasts were hopeful that Washington was warming to digital assets. But cyberattacks demanding Bitcoin ransoms, wild trading and rebukes from regulators have eroded their optimism.

The timing couldn’t be worse. Policy makers are poised to make a number of critical rulings on virtual tokens in the coming months -- decisions that may reveal how deep of a hole the industry has to climb out of. Potentially under consideration are whether to approve a Bitcoin exchange-traded fund, allow crypto mutual funds and grant banking licenses to financial firms.

For advocates, the setbacks are fueling anxiety ...