CLARITY's Chances Are 50-50, Bitwise Exec Says: 'The Industry Will Be too Big to Kill'

Parshwa Turakhiya

Sat, August 1, 2026 at 3:00 AM PDT 5 min read

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With days left before the August 7 deadline, Bitwise Chief Investment Officer Matt Hougan says passing the CLARITY Act has a coin flip's chance—though the market could even stomach a failed attempt.

Why Hougan Says The Genie Is Already Out?

Hougan told Cointelegraph that BlackRock's largest ETF is now a crypto ETF, Goldman Sachs is hiring in tokenization, and JPMorgan is building on blockchain. 

Two more years of the current regulatory environment, he argued, gives the industry enough runway to become too large for any future administration to meaningfully roll back.

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"The genie's out of the bottle," Hougan said. "I think the industry will be too big to kill two years from now," he added.

If the Clarity Act passes, he said it triggers an immediate bull market.

If it fails, he expects volatility but not the end of the cycle, because stablecoins and tokenization have already achieved what he called escape velocity.

On Polymarket's 40% odds, Hougan pushed back on how most people read that number. "The best thing you can say for the Clarity Act is it has had a thousand chances to die, and it hasn't died yet," he said.

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What Drives The Next Bull Market

Hougan pointed to Hyperliquid, as measured by Hyperliquid Strategies Inc and Robinhood Markets as the two clearest examples of on-chain and traditional finance converging. 

Hyperliquid started in crypto and now handles more than 50% traditional asset volume. Robinhood started in traditional finance and launched its own Layer-2 chain integrated with DeFi protocols.

He also flagged a shift in DeFi tokenomics as an underappreciated opportunity. 

Under prior regulatory conditions, apps could not pass revenue to token holders without SEC risk. That is changing. 

Hyperliquid redirects 99% of protocol revenue to buying back its token, Uniswap and Aave are moving in the same direction, and Hougan said most of these assets are dramatically undervalued relative to traditional fintech peers.

"You can now value them on a price-to-earnings ratio," he said. "They now look more like stocks."

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