If the CIO of Bitwise has his way, the American crypto sector is facing a crucial moment. The much-discussed CLARITY Act should soon provide clarity on the regulations surrounding digital assets. But the bill remains pending in the Senate, which could pose a major risk to the future of crypto, according to Matt Hougan.
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‘CLARITY Act is essential for crypto’
The CLARITY Act was approved by the House of Representatives in July last year, but the vote in the Senate is still pending. Bitwise CIO Matt Hougan expressed his concerns about the lack of legislation in a memo on the Bitwise website on Monday. Without clear rules, the sector remains vulnerable to political changes.
According to Hougan, the current government offers a relatively favorable environment for crypto, but if these conditions are not enshrined in law, future leaders could easily reverse this. That would mean the industry would have to prove again why stablecoins, tokenized assets and blockchain infrastructure are relevant.
Comparison with Uber and Airbnb
Hougan compares the situation to the early years of platforms such as Airbnb and Uber. They too operated in a legal gray area until their popularity forced policymakers to draft legislation. But according to him, it is more complicated for crypto. If large-scale adoption does not occur, a next government could intervene without much resistance.
The risk? Crypto is being pushed back into the margins. “Without legal anchoring, everything remains dependent on the political climate,” Hougan warns.
Potential impact on the crypto market
If the bill is approved, Hougan foresees a huge boost for the sector. He then expects a sharp rally, especially in markets surrounding stablecoins and tokenization. According to him, investors will see the approval as proof that crypto is ‘here to stay’ and institutional parties will therefore get on board more quickly.
Time is running out. The midterm elections are scheduled for November. If Republicans lose their majority, things won’t get any easier for supporters of the CLARITY Act.
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Source: https://newsbit.nl/crypto-kan-zware-klap-krijgen-als-clarity-wet-faalt-waarschuwt-bitwise-topman/
