Bitwise CIO says CLARITY Act failure will not derail crypto bull market

Bitwise Chief Investment Officer Matt Hougan says the failure of the CLARITY Act in the Senate is unlikely to derail crypto’s current bull market, arguing that Bitcoin’s recent rally was already taking place as the bill’s chances of passage declined. The Senate rejected cloture on the Digital Asset Market Clarity Act on Tuesday in a 49 to 50 vote, falling short of the 60 votes required to advance the legislation. Hougan pointed to Bitcoin’s performance since July as evidence that the market was not dependent on the bill. Bitcoin rose from $57,950 on July 1 to above $80,000 on September 4, while Polymarket odds of the CLARITY Act becoming law this year fell from 39% to 18% over roughly the same period, according to Bitwise. “If the bull market depended on Clarity’s passage, you would have expected falling odds to mean falling prices,” Hougan wrote. He also argued that major financial firms have continued expanding into crypto despite uncertainty around the legislation. Robinhood launched the mainnet of its own blockchain in July, Morgan Stanley launched Ethereum and Solana exchange traded products later that month, and DTCC completed production trades using tokenized securities. Hou...