Bitwise Chief Investment Officer Matt Hougan said the CLARITY Act’s collapse in the U.S. Senate would probably have less impact on the crypto market than investors’ initial reaction suggested, calling it a “speed bump, not a road closure.” On September 15, the Senate failed to advance the bill procedurally, raising questions about the prospects for a comprehensive federal framework for digital assets.

Forty-nine senators voted to end debate, short of the 60 votes required to move to further consideration. Bitcoin briefly fell below $75,000 after the vote.

Hougan said he had expected significantly more negative consequences earlier this year if the CLARITY Act failed. He revised that assessment after observing bitcoin’s price performance over the past several months.

From July 1 to September 4, bitcoin rose from $57,950 to more than $80,000, while the probability on Polymarket that the CLARITY Act would pass by year-end fell from 39% to 18%. Hougan said the divergence indicated that the rally was not directly tied to the legislation because, otherwise, the two measures would have moved in the same direction.

Hougan also pointed to major financial companies that proceeded with digital-asset initiatives without waiting for a federal framework. He cited the launch of Robinhood Chain, Morgan Stanley’s crypto exchange-traded funds and DTCC’s work on tokenized securities.

An onchain ecosystem has formed around Robinhood Chain since its launch over the summer. In early 2026, Morgan Stanley filed applications for funds based on bitcoin and Solana, while DTCC is preparing to launch a securities-tokenization service.

Regulators could shape rules without Congress

Hougan said the SEC and CFTC would take the leading role in the short term following the CLARITY Act’s failure. SEC Chair Paul Atkins previously said he was prepared to develop rules addressing issues that the bill was intended to cover. In August, the SEC proposed Regulation Crypto Assets, a separate regime for certain digital-asset transactions.

Hougan acknowledged that regulations adopted by the agencies could be changed by a future administration, while legislation passed by Congress would provide a more durable foundation. He also noted that only Congress could give the CFTC full authority to oversee the spot market for digital assets.

Supporters of the bill had warned before the vote that its failure could cause a lengthy delay. Senator Cynthia Lummis previously said the next realistic opportunity to pass comprehensive market-structure legislation might not come until 2030 if the measure failed during the current session.

Bitwise believes the absence of the CLARITY Act alone will not stop the crypto industry’s institutional development. Hougan stressed that this was his current assessment of the market, not a guarantee of continued momentum.

Source: Incrypted