Bitwise CIO Adjusts Crypto Outlook Following Senate Vote on CLARITY Act

Matt Hougan, Chief Investment Officer of Bitwise Asset Management, has revised his outlook on the cryptocurrency market following the Senate's defeat of the CLARITY Act on September 15, 2026. Initially, Hougan had warned that the failure of the bill could hinder a potential bull run in the crypto sector, a sentiment he maintained for eight months. However, just a day after the Senate vote, he characterized the setback as a minor obstacle rather than a significant barrier, prompting a positive response from the market.

Despite the Senate's decision, which resulted in a narrow vote of 49 to 50, Bitcoin experienced a rebound, rising approximately 38% from early July to early September. This increase occurred even as the odds of the CLARITY Act passing diminished significantly. Major financial firms, including Robinhood and Morgan Stanley, continued to advance their crypto initiatives, suggesting a growing confidence in the market despite regulatory uncertainties. Hougan noted that these developments indicate a strong pro-crypto stance from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) through 2029.

However, Hougan retained three key limitations in his revised outlook. He emphasized that agency rules can be reversed by future administrations, only Congress can expand the CFTC's authority over spot crypto markets, and that the CLARITY Act would have provided a more robust regulatory framework than current agency regulations. He anticipates continued market weakness until further announcements from regulatory bodies, particularly following the Federal Reserve's recent interest rate increase to 4.00%, the first hike since 2023.

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Source: KLEA News