Matt Hougan, Chief Investment Officer at Bitwise, stated that the cryptocurrency market can continue to grow despite the failure of the CLARITY Act in the US Senate. He noted that the legislative setback is less significant than initial market reactions suggested.
Data from Polymarket shows that the probability of the bill passing in 2026 dropped from 39% to 18% between July 1 and September 15. During the same period, the price of Bitcoin rose from approximately $57 950 to over $80 000, indicating a divergence between legislative expectations and market performance.
Hougan highlighted that Wall Street institutions are proceeding with crypto initiatives regardless of congressional action, citing the launch of Robinhood Chain, Morgan Stanley's Solana ETF, and DTCC's tokenized stock settlements. Firms are reportedly relying on the current regulatory approach of the SEC and CFTC.
On September 15, the Senate failed to advance the CLARITY Act, with a vote of 49 in favor and 50 against. Although seven Democratic senators, including Kirsten Gillibrand, confirmed their intent to continue working on the legislation, none of them supported the procedural motion during the vote.
