Crypto may be better off without CLARITY Act, Bitwise CIO says

What happened

The CLARITY Act did not get the 60 votes required to advance in the US Senate after years of negotiations. The Senate failed to move the bill forward in a Sept. 15 procedural vote. Bitwise CIO Matt Hougan published an analysis on Sept. 30 saying four crypto sectors gained business advantages from the failure.

Hougan wrote that crypto sacrificed long-term certainty and got better rules, faster. The crypto industry had strongly supported the bill, but the final version included compromises that could have created new restrictions for crypto companies.

Bitcoin and Ethereum each gained about 11% after the vote. Hougan said NEAR rose 125%, Uniswap 49%, and Avalanche 44%.

Why it matters

Stablecoin platforms kept the ability to offer rewards on balances. The bill would have stopped platforms from paying interest or rewards on stablecoin balances, with penalties reaching $5 million per violation. Hougan said this could benefit Coinbase, which uses stablecoin rewards to attract users.

Established exchanges such as Coinbase and Kraken avoid changes for now. CLARITY would have created a national licensing framework for spot crypto exchanges and placed limits on how exchanges combine trading and brokerage services.

Tokenization companies gained a testing opportunity. The SEC issued a five-year exemption for tokenized stock trading on Sept. 17. Hougan singled out Securitize as a beneficiary.

Revenue-generating tokens benefited from clearer regulatory guidance. The SEC clarified that announcing a buyback program does not by itself make a token a security.

What the data shows

As of Sept. 30, Hougan reported that NEAR gained 104%, Uniswap 49%, Pump 19%, Hyperliquid 15%, and Lighter 10% after the vote.

The other report says NEAR climbed 125%, Uniswap added 49%, and Avalanche gained 44%, according to Hougan.

Background

The GENIUS Act provides a separate ban on interest for issuers. It was enacted July 18, 2025.

Michael Saylor, co-founder and former CEO of Strategy, also sees the failure differently. He believes the sector should use the next few years to create compliant crypto products under current rules instead of rushing to accept a compromise.

What is still unclear

• The two reports give different post-vote gains for NEAR. Bitwise's analysis reported 104% as of Sept. 30, while the other report says NEAR jumped 125%.
• There is still a major risk as regulation can change when a new administration takes office. A future SEC or CFTC leadership could take a tougher approach to crypto.
• Hougan expects crypto to be too big to crush despite that risk.

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