Clarity Act Failure Spurs Crypto Market Rally

After the Clarity Act failed to advance in the Senate on September 15, the price of Bitcoin rose by nearly 8% and Ether by around 7%. According to Bitwise Chief Investment Officer Matt Hougan, this market rally was linked to agency decisions that followed the failed vote.

Hougan argued that the setback may have opened a faster route to favorable crypto rules. He described a tradeoff between immediate regulatory flexibility and the longer-lasting protection Congress could provide.

The Clarity Act aimed to regulate stablecoin rewards, but its failure allowed exchanges like Coinbase to retain customer reward programs. Hougan also pointed out that established exchanges could retain advantages through existing state licenses and infrastructure.