Hougan: CLARITY Act Rejection Won't End Crypto Bull Run

Bitwise CIO Matt Hougan downplayed the impact of the Senate's rejection of the CLARITY Act, saying it is unlikely to end the current bitcoin and crypto bull run. The bill, which aimed to improve investor safeguards and create durable rules for digital assets, was rejected on September 15 by a vote of 49-50.

Hougan acknowledged that the immediate market reaction was negative, with bitcoin declining about 4% the day after the vote. However, he argued that this decline was understandable given concurrent concerns about interest rates and energy prices.

In a memo dated September 16, Hougan noted that the rally in bitcoin started on July 1, when its price found a low near $57,950. By September 4, the asset had climbed above $80,000. Hougan attributed this growth to institutions that refused to wait for lawmakers and have already taken steps to invest in crypto.

Hougan cited examples such as Robinhood launching its own blockchain, Morgan Stanley introducing a Solana exchange-traded product, and the Depository Trust & Clearing Corporation completing production settlements of tokenized securities. He also noted that SEC Chair Paul Atkins has stated the agency is prepared to issue rules covering many of the same topics as the stalled bill.