Bitwise CIO: Failure of the Clarity Act May Have Limited Impact, Crypto Bull Market May Continue

BlockBeats news, September 17: Bitwise Chief Investment Officer Matt Hougan has revised his previous view on the failure of the Clarity Act, no longer believing that the bill's failure would lead to a bear market in crypto. Previously, Hougan had stated that if the Clarity Act failed to advance, the crypto market could face a "six-week winter." However, in his latest report to clients, he said he now leans toward believing that the impact of the bill's failure may be lower than market attention suggests.

Hougan pointed out that Bitcoin rebounded from a low of about $58,000 on July 1 and broke through $80,000 on September 4, while during the same period the predicted probability of the Clarity Act passing this year fell from 39% to 14%. He believes that if the crypto bull market depended on the bill's passage, the decline in related probabilities should correspond to price drops, but the actual situation was not like that.

He stated that the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) can still advance crypto regulation through rulemaking, although congressional legislation can provide a longer-term and more stable regulatory framework. Hougan also said that the market may still face volatility pressure in the future from factors such as interest rates and oil prices.