Bitwise Chief Investment Officer: Even if the CLARITY Act does not pass this week, the crypto industry will continue to develop.

Bitwise Chief Investment Officer Matt Hougan said that even if the CLARITY Act fails to pass this week, the crypto industry will continue moving forward. The U.S. Senate is in recess from August 10 to September 11, leaving only about three days to advance the bill before lawmakers depart. Hougan argued that if Congress fails to pass the bill, the U.S. Securities and Exchange Commission (SEC) may address many of its issues through rulemaking. Rules issued by the SEC, led by Paul Atkins, in the short term could be more favorable to the crypto industry and innovation than a bipartisan bill, but the risk is that future administrations may appoint SEC chairs with different stances and reverse such policies. He noted that if the bill does not pass this week, it will enter a "zombie" state—possibly delayed until fall or winter 2026, or included in year-end omnibus legislation. Long-term uncertainty will continue to deter institutional investors from entering the crypto market on a large scale. Polymarket data shows the probability of the bill being signed into law by the end of 2026 is currently 23%, down from around 75% in mid-May. Hougan still believes Congress should pass the bill, calling it imperfect but helpful for protecting investors, improving ethics, boosting U.S. economic growth, and enhancing America’s competitiveness in on-chain finance.