Bitwise Chief Investment Officer Matt Hougan said the crypto market’s rally after the U.S. Senate failed on September 15, 2026, to advance the CLARITY Act may be linked to faster action by U.S. regulators. He said the industry lost some long-term legislative certainty but gained regulatory decisions that were less restrictive than provisions in the bill under discussion.

Bitcoin rose 8% and Ethereum gained 7% between the vote and September 30, according to Bitwise data. The gains were larger among some altcoins: NEAR climbed 104%, Uniswap rose 49% and Avalanche advanced 43%. Public companies tied to the crypto industry also posted gains.

Stablecoins and trading platforms

Hougan identified stablecoins as one area that may have benefited from the bill being halted. He said the final version of the CLARITY Act would have barred platforms from paying interest or yield on stablecoins.

The existing sector-specific GENIUS Act prohibits issuers from making such payments directly but, under Hougan’s interpretation, does not impose a similar federal restriction on crypto exchanges. He cited Coinbase, which offers users rewards for holding stablecoins, as a potential beneficiary.

The CLARITY Act also sought to establish a federal licensing system for spot crypto exchanges. Hougan said such a regime would have made it easier for large traditional financial firms to enter the market.

The legislation addressed the combination of exchange and broker functions, which a single venue often performs in crypto markets. With the measure stalled, the current operating model for Coinbase, Kraken and other platforms remains in place for now.

SEC actions on tokenization and buybacks

Hougan said the most notable changes involved tokenization. Two days after the Senate vote, the U.S. Securities and Exchange Commission approved limited onchain trading of tokenized U.S. equities.

The SEC granted certain venues temporary, conditional exemptions for five years, allowing them to use automated market makers and liquidity pools if they meet the regulator’s requirements.

SEC staff also issued guidance on September 25 covering certain digital-asset transactions. The document said that, for an already functioning crypto system, an issuer’s announcement of a buyback program for a non-security crypto asset does not by itself constitute a promise to carry out key managerial actions.

The SEC separately emphasized that the frequently asked questions reflected the views of agency staff, were not a rule or a statement by the commission and had no independent legal force.

Hougan linked the clarification to gains in tokens associated with projects that direct part of their protocol revenue toward buybacks. In addition to NEAR and Uniswap, Hyperliquid rose 15%, Lighter gained 10% and Pump advanced 19% after the vote, according to the Bitwise data cited.

Hougan nevertheless described the absence of a legislative framework as the principal long-term risk. Unlike legislation enacted by Congress, SEC or Commodity Futures Trading Commission rules, guidance and exemptions could be changed if the composition of the regulators changes or a future administration adopts a different policy.

Prospects for the CLARITY Act

The Senate failed to advance the CLARITY Act procedurally on September 15. The vote was 49-50 on ending debate and proceeding to consideration of H.R. 3633, short of the 60 votes required. It was not a final vote on passage of the bill.

Bitcoin briefly fell below $75,000 after the result. The measure stalled amid disagreements among lawmakers, including disputes over ethics restrictions and rewards for holding stablecoins.

Several senators said negotiations would continue. Kirsten Gillibrand, Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, Ruben Gallego, Mark Warner and Raphael Warnock called the vote “a setback, but not the end” and said they remained prepared to pursue a bipartisan version.

Senator Cynthia Lummis wrote on September 29 that changes agreed during negotiations concerning users’ right to self-custody digital assets had been included in the CLARITY Act. She did not provide a timetable for another vote.

Journalist Eleanor Terrett previously reported that Democratic senators involved in the talks still intended to work toward a bipartisan agreement. Citing sources, she said they had discussed resuming negotiations after the failed vote and assessing whether the legislation could advance before year-end.

The legislative calendar remains uncertain. Supporters are considering returning to the measure before the end of the year, including after the midterm elections. If the current Congress does not complete work on the bill, lawmakers will have to restart the legislative process under the new Congress.

Meanwhile, the SEC and CFTC continue to develop separate rules under their existing authority. Bitwise said the acceleration of that process was one factor behind the crypto market’s positive reaction to the failed procedural vote.

Source: Incrypted