Bitwise CIO Revises Outlook After Senate Rejects CLARITY Act Cloture

Bitwise Chief Investment Officer Matt Hougan updated his assessment of the CLARITY Act after the Senate voted 49‑50 against cloture on September 15, preventing further debate on the crypto market‑structure bill. Despite the procedural setback, Hougan argues that the recent Bitcoin rally and ongoing institutional activity suggest the market can keep advancing.

Bitcoin’s price momentum offsets legislative uncertainty

Bitcoin rose from a July low near $57,950 to above $80,000 in early September, before settling around $76,300 after the Senate vote and the Federal Reserve’s rate decision. Hougan notes that the price surge weakens his earlier view that a six‑week market downturn was likely if the bill stalled.

Institutional crypto products continue to launch

Major financial firms have proceeded with crypto offerings regardless of the bill’s status. Robinhood moved its Ethereum‑compatible Layer‑2, Robinhood Chain, to mainnet in July and began offering stock tokens globally. Morgan Stanley launched exchange‑traded products for Solana (MSOL) and Ether (MSSE) on NYSE Arca in late July, each charging a 0.14% sponsor fee and incorporating staking.

The Depository Trust & Clearing Corporation (DTCC) also processed live tokenized securities transactions in mid‑July, involving roughly 40 firms and paving the way for a broader tokenization service slated for 2026.

Regulators retain rulemaking authority

Both the SEC and CFTC maintain statutory authority to issue crypto‑related rules without new legislation. The SEC’s proposed “Regulation Crypto Assets” framework, released on August 18, remains open for public comment through October 20. The CFTC’s Innovation Task Force continues to develop rules within its existing mandate, with Chairman Michael Selig indicating readiness to finalize them.

Market reaction and macro backdrop

Following the Senate vote, Bitcoin fell roughly 4% to about $75,900, and crypto‑related stocks such as Coinbase and Circle dropped near 9%. Derivatives markets saw about $571 million of long positions liquidated across Bitcoin and Ether. Hougan attributes part of the volatility to broader macro factors, including the Fed’s rate hike to 3.75%–4.00% and oil price concerns.

Despite the short‑term dip, Bitcoin remained well above its July level and above $75,000 as of mid‑September, supporting Hougan’s view that the rally can persist without immediate legislative action.