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The failure of the CLARITY Act in the US Senate has been a major setback for the crypto industry. The outcome raised new questions about the future of regulation in the country and whether the setback could hurt Bitcoin and other digital assets.<\/p>\n
But Bitwise Chief Investment Officer Matt Hougan believes the vote may not be enough to derail the broader crypto market rally.<\/p>\n
Hougan said<\/a> the CLARITY Act would have been useful for the industry. The legislation was designed to provide a clearer regulatory framework for digital assets. It also aimed to strengthen investor protections and create rules that could remain in place beyond the current administration. Despite this, the exec said Bitcoin’s latest rally did not depend on the bill’s chances of passing.<\/p>\n According to Hougan, Bitcoin bottomed at about $57,950 on July 1. It then climbed<\/a> above $80,000 by September 4. During the same period, Polymarket odds of the CLARITY Act becoming law this year fell from 39% to 18%. The two trends moved in opposite directions. For Hougan, that suggests crypto investors were not waiting for Congress to provide regulatory clarity.<\/p>\n Wall Street has also continued moving into the sector. For instance, Robinhood has launched its own blockchain. Morgan Stanley has launched a Solana ETF. The Depository Trust & Clearing Corporation, or DTCC, has also completed its first batch of tokenized stock settlements.<\/p>\n At the same time, US regulators have been working on rules outside Congress. In August, the SEC proposed Regulation Crypto Assets. This does not mean the loss of the CLARITY Act is unimportant. Agency rules can be changed<\/a> by a future administration. Congress is also needed<\/a> to give the CFTC broader authority over spot crypto markets.<\/p>\n Bitcoin fell after the Senate vote, which added short-term market pressure. But Hougan believes the setback is more of a speed bump than a roadblock.<\/p>\n “Crypto spent its first 17 years without core market legislation. Without Clarity, it has managed to go from a fringe idea to a $2.5 trillion asset class that\u2019s reshaped everything from global payments to capital markets.”<\/p>\n<\/blockquote>\n US-based Bitcoin ETFs returned<\/a> to net inflows after two days of heavy withdrawals. The funds attracted more than $159 million on Thursday. BlackRock’s IBIT was the only ETF to report a net inflow. Interestingly, HYPE also recorded $4.25 million in inflows.<\/p>\n Ethereum ETFs, on the other hand, moved in the opposite direction after posting $39.2 million in net outflows. These investment vehicles extended their losing streak to three days. Market analyst Darkfost said the end of the week appears “calmer” for the ETF market.<\/p>\n The post Here’s Why Bitwise CIO Believes Crypto Could Keep Rallying Without Congress<\/a> appeared first on CryptoPotato<\/a>.<\/p>\n\n\n
Shift Back to Buying<\/h2>\n
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