Crypto Market Surges After CLARITY Act Fails
When the Senate failed to advance the CLARITY Act on September 15, the cryptocurrency market saw significant gains. Bitwise Asset Management's chief investment officer, Matt Hougan, attributed this rise to faster regulatory action and fewer proposed business restrictions.
In his September 30 memo, Hougan identified four crypto sectors that benefited from the bill's setback: stablecoin platforms, established exchanges, tokenization businesses, and revenue-generating tokens. He noted that these industries had accepted some restrictions in exchange for lasting legal certainty.
Stablecoin platforms, such as Coinbase, retained room to offer balance rewards despite the proposed legislation's prohibition on paying interest or yield. Established exchanges like Coinbase and Kraken preserved their business advantages, including barriers facing new competitors and the ability to combine trading with brokerage services.