Crypto Doesn't Need the CLARITY Act to Move Forward, Says Bitwise CIO

The future of crypto regulation in the United States remains uncertain as the Senate appears unlikely to pass the CLARITY Act before the August recess. While this sparks widespread caution, Bitwise CIO Matt Hougan believes that the delay in the passage of the crypto bill will not affect the industry’s growth.

Hougan continues to believe in the potential of the crypto industry even without immediate congressional action. He pointed to the SEC’s ability to launch new crypto regulations as an alternative way to advance the industry in the near term. According to him, the CLARITY Act is not the only path for the industry’s expansion.

Why Bitwise CIO says crypto can grow without the CLARITY Act?

Bitwise CIO Matt Hougan shared a blog post commenting on the strength of the crypto industry. He argues that the ecosystem has reached a stage where it can continue expanding even if the CLARITY Act fails to pass this week. His words read, “If that happens, the market might wobble for a minute, but it will set us up to rally in the fall.”

This critical statement comes as all eyes are on the Senate’s move ahead of its August recess. As mentioned in a previous CoinCodex report, if the crypto bill doesn’t clear the Senate before the lawmakers’ summer break on August 10, 2026, the chances of the legislation passing this year are minimal. Following the recess, the lawmakers’ focus will be exclusively on midterm US elections, making the CLARITY Act increasingly unlikely to become law this year.

Although the Bitwise CIO sees the CLARITY Act as a significant development that brings legal certainty to the crypto industry, he added that the industry’s progress no longer depends solely on the bill. For him, the industry will find another way to move forward even if the bill lags behind.

How will the SEC help crypto growth?

One of the main reasons for the Bitwise CIO’s confidence in the industry’s growth is his trust in the efforts of the US Securities and Exchange Commission (SEC). Hougan noted that if the CLARITY Act is delayed, the SEC could introduce new rules that could push the industry forward. Referring to the SEC Chair Paul Atkins’s words, Hougan added:

“Last week, SEC Chair Paul Atkins made this abundantly clear in an interview with CNBC. The SEC, he said, is “ready, willing, and able to come out with rules that address the same issues [as] Clarity.”

At the same time, the Bitwise CIO added that the SEC’s crypto regulations have their own limits. The agency can update rules for securities, token offerings, and registered firms. But it cannot grant the Commodity Futures Trading Commission (CFTC) authority over digital commodity markets. This means that the SEC’s potential rules can help shape crypto regulation, but if the industry needs a comprehensive legal framework, the CLARITY Act needs to become law.

Political delays won’t stop crypto growth

Matt Hougan noted that political delays in Washington won’t be a reason for a slowdown in the crypto industry’s long-term expansion. With the SEC’s intervention and the industry’s already solid position, the space can continue to grow despite delays in the CLARITY Act passage.

Further, he compared the situation to the early days of the internet. Lawmakers reportedly took years to pass major technology legislation. But internet companies continued to grow in the meantime. Hougan believes that crypto is now at a similar stage.