TLDR
- Bitwise CIO expects crypto growth to continue even if the CLARITY Act misses the Senate deadline.
- Matt Hougan said regulatory uncertainty will not stop expanding institutional adoption of digital asset markets nationwide.
- CLARITY Act passage odds dropped as Senate failed to advance cloture before the August recess deadline.
- Bitwise expects SEC rulemaking to support crypto markets even without immediate congressional approval of the legislation.
- Hougan said tokenization, stablecoins, ETFs, and institutional adoption continue driving long-term crypto market expansion independently.
Crypto markets may continue growing even if the CLARITY Act misses the Senate’s August recess deadline, as Bitwise CIO Matt Hougan said the industry’s long-term momentum remains intact despite ongoing legislative uncertainty.
Bitwise CIO Says CLARITY Delay Would Not End Crypto Growth
Bitwise Chief Investment Officer Matt Hougan said the crypto industry can continue expanding even if the CLARITY Act does not receive a Senate vote before lawmakers leave for the August recess. He described the current week as an important period for the digital asset market structure bill but said a delay would not end its chances of becoming law.
Hougan explained that senators would need to file for cloture before the Senate recess for the legislation to have a realistic opportunity for a floor vote. As of Wednesday, public Senate records did not show a cloture filing for the CLARITY Act, while filings had been submitted for government funding measures, nominations, and other legislation.
The CLARITY Act passed the House in July 2025 and advanced through the Senate Banking Committee in May 2026. It was placed on the Senate calendar in June and remains eligible for future consideration. The bill would still require Senate approval, reconciliation with any differing versions, and the president’s signature before becoming law.
Legislative Uncertainty Continues as Market Odds Decline
Prediction markets have reduced expectations for the CLARITY Act this year. Current market estimates place the probability of passage in 2026 at around 16%, down sharply from earlier expectations. The decline followed reports that Senate Majority Leader John Thune did not file cloture on the motion to proceed before the expected deadline.
Hougan said a delayed vote would place the legislation into what he described as “a walking dead state,” where supporters continue pursuing passage after the Senate returns from recess or through a broader legislative package later this year.
He also noted that prolonged uncertainty may keep some institutional investors on the sidelines while they wait for more clarity around US crypto regulation. At the same time, Hougan argued that lower expectations for passage could eventually remove uncertainty if markets fully price in a delay.
SEC Rules and Industry Adoption Could Keep Momentum Alive
Hougan said the crypto industry is expected to continue developing even without immediate congressional action. He pointed to recent comments from SEC Chair Paul Atkins, who said the agency is “ready, willing, and able to come out with rules that address the same issues” covered by the CLARITY Act.
He said regulatory action through the SEC could provide a workable framework for digital assets, although future administrations could revise those rules. Even so, Hougan argued that growing institutional adoption would make it increasingly difficult to reverse the industry’s progress.
Major financial firms continue expanding digital asset services through tokenization, stablecoins, exchange-traded funds, and blockchain-based financial products. Federally regulated crypto companies have also continued receiving approvals, while several countries have introduced or expanded digital asset legislation.
Hougan wrote, “Finance is moving onchain,” adding that the broader adoption of blockchain technology by financial institutions is expected to continue regardless of whether Congress approves the CLARITY Act before the Senate recess.
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