CLARITY Act Collapse Leads to Faster Regulatory Wins for Crypto Market

The failure of the CLARITY Act has led to faster regulatory wins for the crypto market, according to Bitwise CIO Matt Hougan.

Hougan believes that the bill's collapse avoided restrictions on stablecoin rewards and some exchange activities, while regulators moved ahead with separate measures.

The Senate rejected the procedural motion to advance the CLARITY Act on September 15, with 49 senators voting for it and 50 against. Bitcoin has since gained nearly 11%, while Ether has risen roughly 12%. Total crypto market capitalization also increased from about $2.65 trillion to $2.95 trillion.

The SEC greenlit tokenized stock trading days after the Senate vote, and issued additional guidance on September 25 regarding crypto, related to token buyback, network growth, and marketing claims.