Bitwise CIO: Crypto Growth Continues Despite CLARITY Act Stalemate

Bitwise CIO asserts crypto expansion persists even if CLARITY Act fails this week. SEC rulemaking may offer favorable short-term relief, though long-term regulatory uncertainty remains a barrier to institutional capital.

Woofun AI reports that Bitwise Chief Investment Officer Matt Hougan stated the crypto industry will continue advancing even if the "CLARITY Act" does not pass this week. With the U.S. Senate adjourning from August 10th to September 11th, only a three-day window remains for legislative progress.

Hougan noted that if Congress fails to act, the SEC may address issues through rulemaking, which could be more favorable than a bipartisan bill in the short term but carries reversal risk under future administrations. He warned that failure to pass the bill this week could relegate it to a "zombie" state, potentially delaying deliberation until fall or winter 2026 or bundling it into an omnibus bill. Polymarket data indicates the probability of the bill becoming law by end-2026 has dropped to 23%, down from 75% in mid-May. Hougan maintained that passing the bill remains crucial for investor protection and U.S. competitiveness in on-chain finance.