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

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 said 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 leave. If Congress fails to pass the bill, the U.S. Securities and Exchange Commission (SEC) may address some of the issues through rulemaking.

He noted that the SEC, led by Paul Atkins, could introduce rules in the short term that may 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 transition.

Hougan believes that if the CLARITY Act does not pass this week, it will enter a "walking dead" state, potentially being delayed until the fall or winter of 2026, or being included in a year-end omnibus bill. Long-term regulatory uncertainty could still hinder professional investors from entering the crypto market at 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 approximately 75% in mid-May. Hougan still supports Congress passing the bill, saying that although it is not perfect, it would help protect investors, improve the regulatory framework, and enhance U.S. competitiveness in the on-chain finance sector.