Crypto Market Surges as CLARITY Act Fails to Pass Senate

The failure of the CLARITY Act in the US Senate has led to a surge in cryptocurrency prices, according to data from Bitwise. Bitcoin is up 8% and Ethereum is up 7% since the vote on September 15, while altcoins such as NEAR, Uniswap, and Avalanche have seen even more significant gains.

Bitwise's Chief Investment Officer Matt Hougan attributes this rally to faster action by US regulators in response to the failed bill. He notes that the industry has gained a series of decisions that prove less restrictive than those proposed in the CLARITY Act.

Hougan highlights several areas where the lack of legislative certainty has led to more favorable regulatory outcomes. One key example is stablecoins, which would have been severely restricted under the CLARITY Act. Instead, platforms such as Coinbase can continue to offer rewards for holding these assets.