Bitwise CIO Says Crypto Will Survive Even Without Clarity Act This Week

Bitwise CIO Matt Hougan says crypto won’t be derailed even if the Clarity Act fails to pass before Congress’ recess. The Senate breaks from Aug. 10 to Sept. 11, leaving just a three day window for the bill to advance.

SEC Could Step In Instead

In a Tuesday blog post, Hougan said the industry will “find a way forward” without Clarity, arguing SEC Chair Paul Atkins could introduce rules even friendlier to crypto than the bill itself. He noted this route may move faster in the short term, though a future SEC chair could later reverse it.

Still, Hougan believes crypto’s progress is now unstoppable, pointing to deep involvement from BlackRock, Nasdaq, JPMorgan, and Visa. He estimated the industry has at least two and a half years before political shifts could threaten SEC-led rules.

Bill Enters “Walking Dead” Status

If Clarity fails this week, Hougan predicts it will stall rather than die, possibly resurfacing in a year-end legislative package. He warned this delay would still hurt crypto by discouraging institutional investors. Polymarket now gives Clarity a 23% chance of passing in 2026, down from 75% in May.

Political friction remains, tied to Trump’s alleged crypto conflicts and a push to ban sports prediction markets from the bill. Hougan maintained Congress should still pass it, calling it imperfect but beneficial for the economy and investor protection.