CLARITY Act Collapse Fuels Gains for Crypto's Big Winners

Bitwise investment chief Matt Hougan identified four areas of crypto that have benefited from the collapse of the CLARITY Act in the US Senate. The bill, which aimed to regulate stablecoins and exchanges, failed to advance after a September 15 vote of 49-50 in the Senate.

Hougan pointed out that without the CLARITY Act, regulators have moved further than the proposed legislation would have allowed. He named stablecoins, exchanges, tokenization platforms, and buyback-driven tokens as the four winners in this situation.

Stablecoins and exchanges have been able to maintain their edge due to the absence of stricter regulations. Coinbase, for example, uses stablecoin rewards to attract customers, which would have been barred under the CLARITY Act. The bill also proposed a national spot license that would have eased entry for traditional finance giants.

Exchanges such as Coinbase and Kraken have benefited from not having to obtain state-by-state licenses. The CLARITY Act would have limited exchanges' ability to combine exchange and broker services, but this limitation is now off the table.