Bitwise CIO Matt Hougan revealed what could potentially happen to the crypto industry if the CLARITY Act is not passed. Hougan also revealed that the crypto market could lose its momentum drastically if the bill collapses.
Matt Hougan Flags Risk for Crypto if CLARITY Act Fails
In his recent blog post, Hougan revealed that the market could lose the potential to kick-start a bull run if the crypto bill fails. He also revealed that it is of utmost importance to pass the bill so that a much more friendly environment can be established for the industry.
Hougan further revealed that if the CLARITY Act is not passed at the current time, it could be disrupted by another administration.
“I’ve written before about how important it is that Congress pass the Clarity Act. The reason is simple: The Clarity Act would cement the current pro-crypto regulatory environment into law. Without it, a future administration could reverse today’s pro-crypto push,” Hougan shared.
The investment manager said this before the markup of the crypto bill version of the Senate Agriculture Committee tomorrow. He said that the prediction markets, which were previously positive about the bill, are now losing confidence. The odds, which were previously at 80%, are now at 50%.
Another thing that the Bitwise CIO shared is that the opposition expressed by Coinbase on the CLARITY Act affected its chances. He then proceeded to say that if the bill does not pass, crypto will be on a ‘show me’ phase.
“If the bill fails, I believe crypto will enter a “show me” period. That means it will have three years to make crypto indispensable to the everyday lives of regular Americans and the traditional financial industry.”
Hougan also shared how the crypto market could be if the bill is passed or not. He still maintains his confidence in the current administration to approve the CLARITY Act.
What is the Latest Status of the Crypto Bill?
As mentioned earlier, the Senate Ag committee is scheduled to discuss the bill tomorrow. It is also important to note that some of the Democratic senators in this committee have agreed not to raise any issues that will affect the progress of the crypto bill. This is good news for the crypto market.
Moreover, the Senate Banking Committee is yet to reveal the next steps regarding the CLARITY Act. They have delayed the discussion of the vill to address other pressing issues. However, it is mentioned that negotiations have been going on the side.
The White House has continued to be part of the process. They are aiming to see the bill passed as soon as possible. The advisor to Trump on digital assets, Witt, called for the issues to be addressed before it is too late.