Bitwise CIO: The Crypto Industry Will Continue to Grow Despite CLARITY Act Delays

Huo Xing Cai Jing reports that on August 5, Matt Hougan, Chief Investment Officer at Bitwise, stated that even if the CLARITY Act fails to pass this week, the crypto industry will continue to move forward. The U.S. Senate will be in recess from August 10 to September 11, leaving only about three days for the bill to advance before lawmakers depart. Hougan believes that if Congress fails to pass the bill, the Securities and Exchange Commission (SEC) may address many of its provisions through rulemaking. Short-term rules issued by the SEC under Paul Atkins’ leadership could be more favorable to the crypto industry and innovation than a bipartisan bill, but the risk lies in the possibility that a future administration may appoint an SEC chair with different views and overturn these policies. He noted that if the bill does not pass this week, it will enter a “zombie” state—potentially delayed until fall or winter 2026 or folded into an end-of-year omnibus bill. Prolonged uncertainty will continue to deter institutional investors from entering the crypto market at scale. Polymarket data shows the probability of the bill becoming law by the end of 2026 is currently 23%, down from around 75% in mid-May. Hougan still believes Congress should pass the bill, stating that although imperfect, it would help protect investors, improve ethical standards, drive U.S. economic growth, and enhance America’s competitiveness in on-chain finance.