Senate has hours to advance CLARITY, but Bitwise says missing deadline sets up a crypto rally
The Senate is close to missing its deadline to advance the CLARITY Act, which would create a federal framework for digital assets and split oversight between the SEC and CFTC. Supporters have only hours to secure cloture before the chamber leaves for recess, and the bill is not on Wednesday’s floor agenda. Bitwise’s Matt Hougan says the best outcome for crypto is still passage, but a clear collapse in the bill’s near-term prospects could also be bullish if it removes months of uncertainty. He argues investors are holding back capital while the bill’s fate remains unclear. A decisive drop in passage odds could let markets move on and price the industry under the existing regulatory trajectory. If the Senate misses this week’s deadline, Hougan expects the bill could enter a “walking dead” phase, with repeated attempts to revive it later this year. Democrats remain unconvinced by added ethics restrictions, while Republicans say the bill preserves anti-fraud protections and improves clarity.
