Crypto Markets May Keep Rising Even Without Clarity Act Passage

Despite the looming Senate recess, Bitwise Chief Investment Officer Matt Hougan remains optimistic about the future of crypto markets. According to Hougan, even if the Clarity Act fails to pass before August 10, the industry will continue advancing.

The Clarity Act aims to establish a comprehensive US regulatory framework for digital assets and divide oversight responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. However, with only this week left to file for cloture, it's uncertain whether the bill will receive a vote before lawmakers leave Washington.

Hougan expects that if Congress passes the legislation, it would support a new crypto bull market. However, he believes that missing this week's deadline would not necessarily kill the bill, and it could enter what he called a 'walking dead' phase, with supporters continuing to pursue passage when the Senate returns in September or through a broader legislative package later in the year.

Hougan noted that an extended uncertainty over the Clarity Act could keep some professional investors from committing capital to crypto. However, he argued that a decisive reduction in expectations for passage could eventually benefit the market by removing uncertainty, even if crypto prices initially decline in response.