CLARITY or not, crypto isn’t going back in the bottle: Bitwise

Matt Hougan, Bitwise chief investment officer, asserts that regulatory guidance from the SEC and CFTC will keep the crypto industry moving forward even if the CLARITY Act fails to pass in Congress. Hougan argues that while many, including himself, have viewed the week as critical for the bill's passage, the crypto industry's progress is too significant to reverse.

He contends that Washington's tardiness in addressing major technological shifts has not mattered as much as some feared. The Senate has until Aug. 5 to advance the CLARITY Act before its summer recess, with many fearing a delay until next year if it fails. Recent market odds show a 23% chance of the bill being signed into law this year, down from 82% in February.

Without a clear path to passage, Hougan predicts the bill could become "stalled" but not permanently defeated. He believes the industry could fall back on the SEC-CFTC's joint interpretation issued in March, which classifies crypto assets as digital commodities. While this guidance is not as robust as legislation, Hougan believes it will still provide two and a half years for the industry to progress before a new administration could potentially change the regulatory landscape.