Bitwise Asset Management’s chief investment officer, Matt Hougan, said this week that the cryptocurrency industry can absorb a defeat of the CLARITY Act. But he warned that the sector cannot thrive in a state of limbo.
The CLARITY Act faces a Friday deadline as the Senate prepares to recess. The bill, which aims to provide a clear regulatory framework for digital assets, has been a key priority for crypto firms and lobbyists in Washington.
‘We can handle a loss’
Hougan told reporters that the industry has the financial and political capital to withstand a legislative setback. “The crypto industry can absorb a defeat of the CLARITY Act this week,” he said. He did not provide specific numbers or cite internal polling.
His comments come as the bill’s path to passage remains uncertain. The Senate is expected to leave for recess on Friday, and the CLARITY Act has not yet been scheduled for a floor vote.
Why limbo is worse
Hougan stressed that the real risk isn’t a clear loss — it’s continued ambiguity. “The crypto industry cannot thrive in a state of limbo or uncertainty,” he said. Without a definitive regulatory outcome, companies may delay hiring, shelve product launches, or move operations overseas.
That message echoes what several crypto executives have told GFdaily in recent weeks: they want a decision, even if it’s not the one they lobbied for.
What happens Friday
The Senate’s recess deadline is the next concrete milestone. If the CLARITY Act doesn’t get a vote by then, the bill effectively dies and would need to be reintroduced in the next session. Hougan’s remarks suggest Bitwise is already planning for that scenario.
Whether the industry’s resilience will be tested remains an open question — one that will be answered by the end of this week.
