Bitwise CIO: Even if the CLARITY Act fails to pass, the crypto industry will continue to develop

Odaily News: Bitwise Chief Investment Officer Matt Hougan stated that even if the CLARITY Act fails to pass this week, the crypto industry will continue to move forward.

Hougan noted that the U.S. Senate will be in recess from August 10 to September 11, leaving only about a 3-day window for the bill to advance before lawmakers depart. If Congress fails to pass the legislation, the U.S. Securities and Exchange Commission (SEC) may address some of the issues through rulemaking.

He said that rules introduced by the SEC under Paul Atkins in the short term could be more favorable to the crypto industry and innovation than a bipartisan bill, but the risk is that such policies could be reversed after a future SEC Chair change.

Hougan believes that if the CLARITY Act fails to pass this week, it will enter a "zombie" state, potentially being delayed until the fall or winter of 2026, or folded into an end-of-year omnibus bill. Long-term regulatory uncertainty could still hinder professional investors from entering the crypto market on a large scale.

According to Polymarket data, the probability of the CLARITY Act being signed into law by the end of 2026 is currently around 23%, a significant drop from roughly 75% in mid-May. Hougan still supports Congress passing the bill, saying that while it is not perfect, it would help protect investors, improve the regulatory framework, and enhance U.S. competitiveness in the on-chain finance sector.