Crypto Market Surges After Senate Rejects Clarity Act

The US Senate recently rejected the Clarity Act, which would have imposed federal regulations on the cryptocurrency industry. Despite expectations of a market downturn following the vote, Bitcoin and other cryptocurrencies have seen significant gains.

According to Bitwise Chief Investment Officer Matt Hougan, the crypto market may be better off without the bill. The Clarity Act aimed to establish a national license for spot crypto exchanges, but its rejection has allowed platforms like Coinbase to continue offering rewards on stablecoin balances.

Hougan noted that the SEC's approval of a five-year exemption for tokenized U.S. stocks trading on on-chain platforms is also a positive development. This exemption allows listed U.S. stocks to be tokenized and traded through permissioned automated market makers and liquidity pools, without requiring registration as exchanges.

The crypto market has responded positively to the news, with Bitcoin up nearly 11% and ether about 12% since the vote. The total crypto market value now sits at roughly $2.95 trillion, up from $2.65 trillion on the day of the vote.