Bitwise CIO Matt Hougan says crypto can keep advancing if Congress misses this week’s deadline to move the Clarity Act before the Senate recess.
Key Points:
- Hougan expects crypto markets and onchain finance to expand even without the Clarity Act.
- SEC rules could provide faster relief, but a future administration could reverse them.
- Delays may keep professional investors cautious and leave the bill in prolonged uncertainty.
Clarity Deadline
The Senate faced a narrow window to advance the market structure bill, with cloture due Aug. 5 and lawmakers expected to leave Washington after Aug. 7. The chamber’s formal state work period runs from Aug. 10 through Sept. 11. No floor vote had been scheduled.
In an Aug. 4 investment memo, Hougan said the industry would “find a way forward” if Congress failed to act. He described the bill’s likely status as “walking dead,” meaning lawmakers could revisit it in the fall or attach it to a year-end package. *
Polymarket placed the chance of enactment by year-end at 23%, down from about 75% in mid-May.
Political disputes remain unresolved as Democratic lawmakers raise concerns about Donald Trump’s alleged crypto conflicts, while senators and tribal gaming regulators seek language barring sports-related prediction markets.
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Hougan’s Crypto Outlook
Hougan argued that SEC Chair Paul Atkins could address many of the bill’s core issues through agency rules. Atkins has said the commission is “ready, willing, and able” to establish similar standards. Hougan called that a near-term advantage.
That path carries a durability problem. A later administration could appoint a chair who changes the rules, while legislation would offer a more stable framework for exchanges, custodians and investors.
Hougan said growing involvement from BlackRock, Nasdaq, JPMorgan and Visa makes a full regulatory retreat increasingly difficult. He estimated the industry would have at least two and a half years to deepen adoption before another administration could install new SEC leadership.
Still, he urged Congress to pass the bill, saying it would strengthen investor protections, ethics rules and U.S. competitiveness in onchain finance.
The Clarity Act grew from FIT21, which passed the House in May 2024 before the newer proposal began moving through Congress in May 2025. Its long path reflects a recurring divide over which agencies should oversee digital assets and how federal law should classify crypto markets.
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