CLARITY Act remains uncertain as the U.S. Senate has just days left to take up the crypto market structure bill before departing for its summer recess on Aug. 5. Although this is a crucial moment for the crypto sector, Bitwise Chief Investment Officer Matt Hougan does not believe the bill’s failure to pass will prevent the industry from continuing to thrive.
As reported in Matt Hougan’s article posted on Wednesday, the legislation can get into a “stalled period” if it does not move forward, but Hougan is not convinced this will prevent the growth of digital assets in the long term.
Bitwise Says Crypto Has Already Reached a Turning Point
As Hougan pointed out, despite the fact that this week has been seen by many people as a critical moment for the future of the CLARITY Act, the cryptocurrency community has progressed too far to stall now.
Furthermore, as he noted, the U.S. capital has been known as an organization where the response to technological changes is usually delayed, but, nevertheless, innovations continue nonetheless.
The Senate is under pressure to pass the bill now before its members go on break for the summer. Failure to do so will result in the bill taking a backseat as Congress prepares for the upcoming November midterm election.
Also Read | Toobit Introduces Simplified New Trader Onboarding
Chances of Passing This Year Continue to Fall
Hope for the CLARITY Act has faded. Galaxy Research has reduced its chance of approval in 2026 to 30%. On Polymarket, the chance of passing by 2024 has dropped from 82% to 23%.
According to Greg Cipolaro of NYDIG, the new bill is better but still does not get enough bipartisan backing to win the 60 votes in the Senate.
As reported by Punchbowl News citing sources, Senate Democrats will oppose the bill if negotiations do not resume on topics such as ethics regulations, anti-illicit finance actions, and stablecoin yields.
Delayed Bill Could Return Later This Year
According to Hougan, if the bill does not pass in the coming days, then it will be considered “a walking dead.” He is sure that Congress may pick up this issue in September or even in the annual lame duck session in which many bills can be put into one big omnibus spending bill.
Should the CLARITY Act fail to get Congressional approval this year, Hougan noted that the cryptocurrency industry will still be running on the joint interpretation released by the SEC and CFTC in March.
The joint interpretation considers Bitcoin, among others, to be digital commodities and replaces the previous guidance by the SEC in 2019.
Paul Atkins, the current Chairman of the SEC, indicated last week that the commission was ready to issue more regulations in areas very similar to those covered by the CLARITY Act. On the other hand, Atkins pointed out that only Congress would be able to guarantee legal certainty, as guidelines provided by the regulators can be legally contested or reversed in the future.
Ryan Louvar, WisdomTree Chief Legal Officer, has stated that relying solely on regulators generates uncertainty, leaving companies unsure about what regulations apply to them.
Bitwise Remains Positive on Crypto’s Future
Even with the ambiguity in the legislation, according to Hougan, the industry is in a good state.
He says that the current policy environment will provide enough time for the industry to grow before a new administration comes in and makes changes to its policy. Although Hougan expressed his disappointment in the failure of Congress to pass legislation that would benefit the industry, he is confident that the role that crypto will play in the financial sector is now clear.
Hougan thinks that the growth of the industry has been such that it will play an important role in the future of finance, even if the CLARITY Act fails in the coming days.
Also Read | Ethereum Price Eyes $2,100 as $208M Whale Staking Signals Bullish Momentum
