Expectations for Critical Crypto Legislation Drop to 23%: Bitwise Executive Points to SEC for New Era

Bitwise Chief Investment Officer Matt Hougan stated that even if the Clarity Act does not become law, the cryptocurrency sector will continue its path with a new and friendlier regulatory era shaped through the SEC.

With only a few days left before the US Congress goes on recess, the crypto world’s attention has turned to the Clarity Act regulation. The Senate has only a three-day window for the bill to pass before the summer recess between August 10 and September 11. However, Bitwise Chief Investment Officer (CIO) Matt Hougan argues that this legislative gridlock is not a disaster scenario, but rather could create new opportunities for the sector.

SEC Regulations Could Be a Catalyst for Crypto

Hougan pointed out that if the bill fails to pass, SEC Chairman Paul Atkins could step in to introduce much more innovation-friendly rules. Emphasizing Atkins’ willingness in this regard, Hougan stated that the rules issued by the agency could be a more effective catalyst than a bipartisan bill coming out of Congress. According to data from the prediction market Polymarket, the probability of the bill passing by the end of 2026 has dropped to 23%, down from 75% in May.

Maintaining his optimism about the sector’s future, Hougan reminded that giants like BlackRock, Nasdaq, JPMorgan, and Visa are already involved in the blockchain ecosystem. Stating that even if the Clarity Act does not pass, crypto will make uninterrupted progress for at least another two and a half years with the rules the SEC will set, the executive said that after this point, no authority “can put the genie back in the bottle.” Hougan nonetheless added that the passage of the bill remains the most ideal scenario for the US economy and investor protection.