Bitwise Explained the Crypto Market’s Rise After the CLARITY Act Failed

• Since the CLARITY Act vote, bitcoin is up 8% and Ethereum is up 7%, according to Bitwise data as of September 30.
• The firm’s CIO, Matt Hougan, linked the move to regulatory decisions that followed after the bill was halted.
• The CLARITY Act could still advance, but the timing of a new vote has not yet been set.

Bitwise Chief Investment Officer Matt Hougan said that the crypto market’s rally after the failure of the crypto market structure bill (CLARITY) may be tied to faster action by U.S. regulators. In his view, the industry lost some long-term legislative certainty, but in return gained a series of decisions that proved less restrictive than the provisions in the bill under discussion.

According to Bitwise data as of September 30, since the vote, bitcoin has gained 8% and Ethereum has added 7%. Among altcoins, the move was more pronounced: NEAR rose 104%, Uniswap gained 49%, and Avalanche climbed 43%. Public companies tied to the crypto industry also posted positive performance.

Hougan highlighted several areas that, in his view, benefited from the CLARITY Act being halted. One of them was stablecoins. 

As Bitwise’s CIO noted, the final version of the initiative would have barred platforms from paying interest or yield on such assets. The current sector-specific bill (GENIUS) prohibits such payments directly by issuers, but, under Hougan’s interpretation, does not impose a similar federal restriction on crypto exchanges. As one potential beneficiary, he named Coinbase, which offers users rewards for holding stablecoins.

Another aspect concerns the regulation of trading platforms. The CLARITY Act was meant to create a federal licensing regime for spot crypto exchanges. 

In Hougan’s view, that would have made it easier for large traditional finance firms to enter the market. The document also addressed the combining of exchange and broker functions, whereas in crypto, a single venue often performs both roles. After the initiative was halted, the current model for Coinbase, Kraken, and other players remains in place for now.

The most notable changes came in tokenization. Two days after the vote, the U.S. Securities and Exchange Commission (SEC) approved limited onchain trading of tokenized U.S. equities. The regulator granted certain venues a temporary conditional exemption for five years, allowing them to use automated market makers and liquidity pools, provided they meet the established requirements.

On September 25, SEC staff also issued guidance on certain digital asset transactions. In particular, the document says that for an already functioning crypto system, an issuer’s announcement of a buyback program for a non-security crypto asset, by itself, is not treated as a promise to carry out key managerial actions. The SEC separately emphasized that the FAQ reflects the views of agency staff, is not a rule or a statement of the Commission itself, and has no independent legal force.

Hougan linked this clarification to the performance of tokens from projects that direct part of protocol revenue to buybacks. In addition to NEAR and Uniswap, after the vote Hyperliquid gained 15%, Lighter — 10%, and Pump — 19%, according to Bitwise data cited.

At the same time, Bitwise’s CIO called the lack of a legislative framework the main long-term risk. Unlike a law passed by Congress, SEC or Commodity Futures Trading Commission (CFTC) rules, guidance, and exemptions could potentially be revised if the composition of regulators changes or the next administration shifts policy.

What We Know About the Outlook for the CLARITY Act After the Failed Vote

On September 15, 2026, the U.S. Senate failed to procedurally advance the CLARITY Act. Forty-nine senators voted to end debate and move to consideration of H.R. 3633, while 50 voted against. Sixty votes were required to clear the step. This was a procedural vote, not a final vote on passing the bill.

Against the backdrop of the result, bitcoin briefly dipped below $75,000. At the time, the initiative failed amid disagreements among lawmakers, including over ethics restrictions and rewards for holding stablecoins.

Despite the outcome, some senators said they intended to continue negotiations. In a joint statement, Kirsten Gillibrand, Angela Alsobrooks, Cory Booker, Catherine Cortez Masto, Ruben Gallego, Mark Warner, and Raphael Warnock called the vote “a setback, but not the end” of work on the initiative and reaffirmed their readiness to seek a bipartisan version.

The topic also remains active in recent posts on X. On September 29, Senator Cynthia Lummis wrote that the changes agreed during negotiations — concerning users’ right to self-custody digital assets — were included in the CLARITY Act. However, she did not name any specific timeline for a revote.

Earlier, journalist Eleanor Terrett reported that a group of Democratic senators involved in the talks still intends to work toward a bipartisan agreement. According to her sources, after the failed vote, they discussed the possibility of resuming negotiations and assessing the chances of moving the bill forward before year-end.

At the same time, the legislative calendar remains uncertain. Supporters of the initiative are considering returning to it before the end of the year, including after the midterm elections. If the current Congress does not manage to finish work on the bill, the legislative process will have to be restarted under the new composition.

While the issue remains in Congress, the SEC and the CFTC continue to develop separate rules within their existing authority. Bitwise believes that accelerating this process was one of the factors behind the crypto market’s positive reaction after the CLARITY Act vote failed.

Сообщение Bitwise Explained the Crypto Market’s Rise After the CLARITY Act Failed появились сначала на INCRYPTED.