Why Crypto Rallied After the Clarity Act Failed, According to Bitwise’s CIO

Bitwise Chief Investment Officer Matt Hougan explained in a Wednesday memo why crypto rose after the Clarity Act stalled. The Senate rejected the move to advance it on Sept. 15, with 49 votes in favor and 50 against. Since then, bitcoin is up nearly 11%, ether about 12%, and total market cap sits near $2.95 trillion, up from $2.65 trillion.

Stablecoin Rewards and Exchange Competition

Hougan said the final bill would have barred platforms from paying yield on stablecoin balances. Without it, exchanges like Coinbase can keep offering rewards under the GENIUS Act. He also said Clarity would have opened a national licensing path for rivals and limited firms that combine exchange and brokerage services, so established exchanges benefit from the delay.

SEC and CFTC Action on Tokenization and Buybacks

Days after the vote, the SEC issued a five year innovation exemption allowing limited trading of tokenized U.S. stocks on onchain platforms. SEC staff later said that announcing a buyback for a functioning network does not by itself make a token sale an investment contract.

A future administration could reverse course, since Congress has not locked the rules into law. Hougan wrote that crypto gave up long-term certainty and got better rules, faster.