CLARITY Act's Failure Boosts Crypto Market
Bitwise CIO Matt Hougan said that the recent failure of the CLARITY Act to pass in the US Senate has been beneficial for the crypto market. Bitcoin gained 8% and Ethereum 7%, while several altcoins posted larger gains, such as NEAR (104%), Uniswap (49%), and Avalanche (43%).
Hougan argued that the collapse of the legislation allowed regulators to move faster on industry rules, opening up opportunities for tokenization platforms and revenue-generating tokens. The SEC's recent order allowing tokenized US stocks to trade through permissioned automated market makers and liquidity pools is a key example of this.
The proposed CLARITY framework would have prohibited exchanges from paying stablecoin interest or yield to customers, but the Genius Act remains in effect, prohibiting only stablecoin issuers from doing so. Hougan noted that this allows exchanges more flexibility to offer rewards on stablecoin balances.