Clarity Act Failure Will Not Stop Crypto Growth: Hougan

TLDR

• Matt Hougan said crypto can continue growing even if the Clarity Act fails this week.
• The Senate has a narrow window to advance the bill before its summer recess begins.
• Hougan expects the SEC to create crypto rules if Congress fails to pass the legislation.
• SEC-led rules could support innovation but may face changes under a future administration.
• Wall Street firms have already expanded their involvement in blockchain and digital assets.

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Bitwise Chief Investment Officer Matt Hougan said crypto will keep moving forward even if the Clarity Act fails to pass this week. The bill faces a brief window before the U.S. Senate begins its summer recess on Aug. 10.

Lawmakers are due to return on Sept. 11, leaving days for the measure to clear the chamber. Hougan said the industry can still gain rules through the Securities and Exchange Commission.

Clarity Act Faces Tight Senate Deadline

Hougan wrote in a Tuesday blog post that crypto would “find a way forward” without the bill. He said the SEC could create rules covering the same areas.

SEC Chair Paul Atkins has said the agency can address market issues through regulation. Hougan expects those rules to support innovation more than a bipartisan law passed by Congress.

He warned that SEC rules may be easier for a future administration to change. A later chair could adopt a less supportive approach toward digital assets.

Wall Street Adoption Supports Crypto Growth

Hougan said financial firms have moved too far into blockchain markets for regulators to reverse all progress. He pointed to BlackRock, Nasdaq, JPMorgan and Visa.

These firms offer or support products linked to digital assets, payments, trading and tokenization. Hougan said this activity gives the sector time to expand before a new administration appoints another SEC chair.

He estimated that crypto could have two and a half years to grow under SEC-led rules. By then, he said, the market may be too established to roll back fully.

Bill Could Return Later in 2026

Hougan said the Clarity Act may enter a prolonged state if it misses this week’s vote. Lawmakers could review it again in the fall or winter.

The bill may also become part of a larger year-end spending package. That route could force lawmakers to vote on several measures at once.

Hougan said a long delay would keep professional investors cautious. Polymarket gives the bill a 23% chance of becoming law before the end of 2026.

Political Disputes Remain Unresolved

Democratic lawmakers continue to raise concerns about President Donald Trump’s crypto interests. Senators and tribal gaming regulators also want limits on sports prediction markets.

Hougan still said Congress should pass the Clarity Act. He said the bill would support investor protection, ethics rules and U.S. competition in onchain finance.