Why Crypto Markets Surged After the CLARITY Act Stalled

Matt Hougan, chief investment officer at Bitwise, suggests that the legislative setback allowed the industry to bypass restrictive rules that would have hampered growth. Between the vote and September 30, tokens such as NEAR jumped 104% and Uniswap climbed 49%. Hougan notes that this momentum stems from the market’s relief that proposed bans on stablecoin yield and combined brokerage services were avoided.

Stablecoin issuers and exchanges like Coinbase remain the primary beneficiaries, as they retain the ability to use rewards to attract users—a practice the CLARITY Act would have effectively penalized. Furthermore, the SEC’s subsequent guidance on token buybacks and a new five-year testing path for tokenized U.S. stock venues have provided a more agile regulatory environment than the proposed bill offered. While Hougan warns that agency-level decisions lack the permanence of federal law and remain vulnerable to future political shifts, he expects growing institutional adoption to create a buffer against potential reversals.