Crypto▼ Bearish
CLARITY Act Delay May Spark Short Volatility, Bitwise CIO Says
Bitwise CIO Matt Hougan said the Senate's delay of the CLARITY Act may cause a brief market wobble but could clear the path for a fall recovery. Polymarket odds have fallen to 27%.
Continue with
The Senate’s decision to delay the CLARITY Act vote until September has left crypto traders with a fresh dose of legislative uncertainty. Bitwise Chief Investment Officer Matt Hougan said the market could see a brief, sharp reaction if the odds of passage collapse first.
Hougan wrote in a recent Bitwise CIO memo that the cleanest outcome would be for Polymarket probabilities on the bill’s 2026 passage to drop into the teens. A fall that steep, he argued, would remove the ambiguity that has kept traders focused on the timing of the Senate vote.
“If the Polymarket odds break solidly lower into the teens at least so we can put the uncertainty behind us,” Hougan wrote. He said such a move might cause the crypto market to “wobble for a minute” before potentially setting the stage for a recovery in the fall.