Crypto Markets to Keep Advancing Regardless of Clarity Act Deadline

According to Bitwise Chief Investment Officer Matt Hougan, cryptocurrency markets will continue advancing even if Congress fails to pass the Clarity Act before its August recess deadline. In a recent report, Hougan stated that while passage of the legislation would support a new crypto bull market, missing this week's deadline is not necessarily a deal-breaker.

The Clarity Act seeks 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. Hougan noted that senators need to file for cloture by Wednesday for the bill to have a realistic chance of receiving a vote before lawmakers leave Washington.

Although the Senate's official schedule currently lists a state work period from August 10 through September 11, Hougan believes the legislation could still enter a 'walking dead' phase. This would allow supporters to continue pursuing passage when the Senate returns in September or through a broader legislative package later in the year.

Hougan also argued that even without congressional action, regulators can address many of the same issues through agency rules. He pointed to comments from SEC Chair Paul Atkins, who said the agency was prepared to establish rules covering areas addressed by the Clarity Act.