Crypto Will Keep Growing Regardless of CLARITY Act Outcome

Bitwise CIO Matt Hougan believes that even if the CLARITY Act fails to pass, the crypto market will continue to grow due to SEC rules and institutional progress. The bill was set to reach a vote before the August recess, but it appears to have stalled. Hougan notes that uncertainty around the bill is already keeping some professional investors on the sidelines.

Hougan estimates that if the CLARITY Act passes, crypto would enter a new bull market. However, he believes that even without the law, the industry will find a path forward through SEC rules under Chair Paul Atkins. The regulator has stated it is 'ready, willing, and able' to craft rules addressing the same issues as the bill.

In an analogy with the 1994 telecom reform, Hougan notes that Congress may not be able to slow down the momentum of crypto innovation. He cites examples such as BlackRock's bitcoin ETF and Nasdaq's moves towards asset tokenization as evidence of the industry's growth.