Bitwise CIO: Cryptocurrency Industry Will Continue to Grow Even If CLARITY Act Fails to Pass

Odaily Block News: Bitwise Chief Investment Officer Matt Hougan stated that even if the CLARITY Act fails to pass this week, the cryptocurrency 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 bill, 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 the bipartisan bill, but the risk is that such policies could be reversed after a future SEC chair takes over.

Hougan believes that if the CLARITY Act does not pass this week, it will enter a "zombie" state, potentially being delayed until the fall or winter of 2026 for consideration, or being folded into a year-end omnibus package. Long-term regulatory uncertainty could continue to 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 before the end of 2026 currently stands at around 23%, a sharp drop from approximately 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.