Bitwise CIO Reassesses Market Outlook Following CLARITY Act Stumble

Hougan’s revised perspective stems from a disconnect between legislative progress and institutional momentum. While the Senate failed to secure the sixty votes required for cloture on September 15—with a final tally of 49-50—the broader financial sector has continued to integrate digital assets. Bitwise data highlights that Bitcoin climbed from roughly $57,950 in July to its September peak, even as Polymarket odds for the bill’s passage plummeted from 39% to 18%.

Institutional activity serves as a primary pillar for this optimism. Robinhood successfully launched its Ethereum-compatible mainnet in July, while Morgan Stanley debuted Solana and Ether exchange-traded products on NYSE Arca. Furthermore, the Depository Trust & Clearing Corporation recently processed live production transactions using tokenized securities, involving major players like BlackRock and JPMorgan. These developments suggest that Wall Street is building infrastructure independently of federal oversight mandates.

Regulatory agencies are also moving forward through existing channels. Both the SEC and CFTC have signaled their intent to utilize current statutory authority to manage the digital asset landscape. SEC Chairman Paul Atkins has introduced the proposed Regulation Crypto Assets for public comment, and CFTC Chairman Michael Selig confirmed his agency is prepared to establish rules for the sector. While Hougan concedes that administrative rulemaking lacks the permanence of congressional legislation, he maintains that the industry's current trajectory remains bullish regardless of the immediate legislative setback.