Bitwise CIO credits crypto regulatory wins to failed Clarity Act

The failure of the Clarity for Payment Stablecoins Act in 2025 gave the crypto industry ‘faster’ regulatory progress and fewer legal restrictions than if the bill had passed, Bitwise Investment Chief Investment Officer Matt Hougan argued.

Hougan contended that the collapse of the major stablecoin legislation allowed regulatory momentum to shift decisively toward the Securities and Exchange Commission’s (SEC) framework, accelerating actions like the approval of spot Ethereum exchange-traded funds (ETFs). He suggested that a successful Clarity Act would have created a separate legal track and slowed down the SEC’s rulemaking process.

The Bitwise executive framed the situation as a short-term pain for a long-term gain, acknowledging the immediate frustration within the industry when the bill failed. However, he believes the outcome ultimately benefited the sector by avoiding what he characterized as a potentially restrictive piece of legislation.

Hougan’s comments offer a retrospective view on the shifting US crypto policy landscape, suggesting that the industry’s regulatory path has been shaped more by SEC actions than by comprehensive congressional legislation.