Crypto Market Sees Surge After CLARITY Act Fails in Senate
Bitwise's Matt Hougan believes that the failure of the CLARITY Act has been beneficial for the crypto market. Despite initial concerns over regulatory uncertainty, the Senate's inability to pass the bill has allowed regulators to move faster on industry rules.
Hougan pointed out that Bitcoin (BTC) has gained 8% and Ethereum (ETH) 7% since the vote, while several altcoins posted larger gains. NEAR rose 104%, Uniswap (UNI) gained 49%, and Avalanche (AVAX) advanced 43%. Hougan noted that the failure of the CLARITY Act gives exchanges more flexibility to offer rewards on stablecoin balances under the GENIUS Act.
The Genius Act prohibits stablecoin issuers from paying interest but does not impose the same restriction on exchanges. This has led to increased market share for stablecoins, which Hougan sees as a positive development. He also highlighted that the SEC's actions have opened new opportunities for tokenization, including the recent order allowing tokenized US stocks to trade through permissioned automated market makers and liquidity pools.
Hougan identified Securitize as a major beneficiary of these developments, citing its infrastructure for tokenizing funds from BlackRock, Apollo, and KKR. He also noted that tokens using protocol revenue for buybacks, such as NEAR and Uniswap, have clearer rules without the CLARITY Act.