Hougan Lists Four Crypto Winners After CLARITY Act Failure

Matt Hougan, Bitwise's chief investment officer, identified four crypto sectors that benefited when the CLARITY Act failed. His list includes stablecoins, exchanges, tokenization platforms, and tokens with buyback mechanisms.

In Bitwise's weekly memo dated September 30, Hougan outlined the four winners. He argues the crypto industry ended up in a stronger position after the Clarity Act failed in the Senate. Hougan observed that regulators have already gone beyond what the legislation would have required.

Stablecoins and Exchanges Keep Their Edge

The bill failed to advance after the Senate voted 49-50 on September 15, short of the 60 needed, according to an BeInCrypto report.

Under the failed bill, platforms would have been banned from offering stablecoin yields, facing fines of up to $5 million per violation. With its demise, the 2025 GENIUS Act remains in effect, which only prohibits issuers from paying interest.

Hougan views Coinbase as the primary beneficiary because it uses stablecoin rewards to attract users.

The legislation would have introduced a national spot license, making it easier for traditional finance giants to enter the market. With no such license in place, Hougan notes that Coinbase and Kraken retain the advantage from their state-by-state licensing.

Additionally, the bill would have restricted how companies combine exchange and broker functions, a profitable model in crypto.

“Clarity would have limited exchanges’ ability to bridge these two services, raising costs. That’s now off the table. Advantage: exchanges,” he wrote.

Tokenization and Buyback Tokens Get Faster Answers

Hougan noted that two days after the vote, the SEC issued a five-year exemption covering tokenized US stocks.

The Clarity Act would have only required the SEC to study tokenized securities, a process Hougan says would have taken years. He identifies Securitize, the transfer agent for BlackRock's BUIDL fund, as the main winner.

Finally, SEC guidance issued on September 25 stated that a buyback announcement on a functional network does not by itself constitute a security.

“This is a great example of why Clarity’s failure was a blessing in disguise,” he stated. “Crypto sacrificed long-term certainty for better rules, faster. That’s not a bad tradeoff.”

Since the vote, NEAR Protocol (NEAR), one of the buyback tokens Hougan mentions, has risen 126.62%. Over the same period, Bitcoin (BTC) increased by 10.39%, and Ethereum (ETH) gained 6.86%.

Agency Rules Could Face a New Congress

However, Hougan acknowledges that these gains depend on agency actions, which could be reversed by a new administration starting January 2029.

Former New York Governor Andrew Cuomo sees the risk coming earlier. He cautioned that if Democrats win in November, a new Congress may examine agency rules.

This makes the November midterms a test of whether the four winners Hougan identified can maintain their positions.