Matt Hougan says SEC is prepared to establish crypto rules if the CLARITY Act fails to pass by the August recess.
Bitwise Chief Investment Officer Matt Hougan stated that the Securities and Exchange Commission is prepared to implement rule-making if the Digital Asset Market Clarity Act (CLARITY) misses its August 7 recess deadline. Hougan noted that while the bill faces a tight legislative window, the crypto industry will continue to advance regardless of its passage. He argued that prolonged uncertainty is more detrimental to markets than a clean failure, as professional investors are currently waiting for a resolution. The CLARITY Act aims to establish a federal rulebook for digital assets, dividing oversight between the SEC and the Commodity Futures Trading Commission. While the administration has reversed much of the Biden-era enforcement campaign, the bill would provide a permanent statutory framework. However, the bill faces hurdles regarding ethics provisions that involve Donald Trump's crypto businesses. If the bill fails to pass this year, the administration announced that the SEC and CFTC will move faster on their own to provide clarity for the market.