Bitwise Chief Investment Officer Matt Hougan said the crypto industry can keep expanding even if the CLARITY Act does not receive a Senate vote before lawmakers leave for the August recess. He described the current week as an important period for the digital asset market structure bill, but said a delay would not end its chances of becoming law.

Hougan said senators would need to file for cloture before the Senate recess for the legislation to have a realistic chance of reaching the floor. As of Wednesday, public Senate records did not show a cloture filing for the CLARITY Act, while filings had been submitted for government funding measures, nominations, and other legislation.

The CLARITY Act passed the House in July 2025 and advanced through the Senate Banking Committee in May 2026. It was placed on the Senate calendar in June and remains eligible for future consideration. The bill would still need Senate approval, reconciliation with any differing versions, and the president’s signature before it could become law.

Prediction markets have lowered expectations for passage this year. Current market estimates put the probability of the CLARITY Act passing in 2026 at around 16%, down sharply from earlier expectations. The decline followed reports that Senate Majority Leader John Thune did not file cloture on the motion to proceed before the expected deadline.

Hougan said a delayed vote would put the legislation into what he called “a walking dead state,” in which supporters continue pushing for passage after the Senate returns from recess or through a broader legislative package later this year.

He also said extended uncertainty could keep some institutional investors on the sidelines while they wait for greater clarity on US crypto regulation. At the same time, Hougan argued that lower expectations for passage could eventually eliminate uncertainty if markets fully price in a delay.

Hougan said the crypto industry is still expected to keep developing even without immediate congressional action. He pointed to recent remarks from SEC Chair Paul Atkins, who said the agency is “ready, willing, and able to come out with rules that address the same issues” covered by the CLARITY Act.

Hougan said SEC rulemaking could provide a workable framework for digital assets, even though future administrations could revise those rules. He added that growing institutional adoption would make it increasingly difficult to reverse the industry’s progress, which is part of why policy developments matter to market participants even when legislation stalls.

Major financial firms continue expanding digital asset services through tokenization, stablecoins, exchange-traded funds, and blockchain-based financial products. Federally regulated crypto companies have also continued receiving approvals, while several countries have introduced or expanded digital asset legislation.

Hougan wrote, “Finance is moving onchain,” adding that broader adoption of blockchain technology by financial institutions is expected to continue regardless of whether Congress approves the CLARITY Act before the Senate recess.