Clarity Act Delay Raises Crypto Uncertainty As Bitwise Sees Volatility

The United States Senate postponed action on the Clarity Act until September, extending uncertainty across the digital asset market. The delay removed a key legislative event that market participants expected before the August recess. Meanwhile, Bitwise Chief Investment Officer Matt Hougan said weaker expectations for the bill could trigger brief market pressure before conditions improve later this year.

Senate Pushes Clarity Act Vote to September

Senate leaders confirmed that lawmakers will not consider the Clarity Act before the August recess. Instead, they scheduled the legislation for consideration after Congress returns in September. As a result, the digital asset industry faces another period without a clear federal regulatory framework.

The bill aims to establish clear oversight for digital assets across the United States. It also defines the responsibilities of the Securities and Exchange Commission and the Commodity Futures Trading Commission. Therefore, many industry participants consider the proposal an important step toward regulatory certainty.

Republican lawmakers currently hold 53 Senate seats, yet the legislation requires 60 votes to overcome a filibuster. Consequently, bipartisan support remains necessary before the bill can advance. Lawmakers also continue negotiations over ethics rules, illicit finance measures, and consumer protection requirements.

Bitwise Expects Brief Market Weakness Before Potential Recovery

Bitwise Chief Investment Officer Matt Hougan addressed the delayed legislation in a recent company memo. He said lower expectations for the Clarity Act could remove uncertainty surrounding the Senate timetable. He added that the market could experience a short period of weakness before recovering later in the year.

Hougan pointed to prediction market expectations surrounding the legislation during his assessment. He said the probability of passage during 2026 should decline sharply if lawmakers fail to approve the bill this week. According to his view, reduced expectations could eliminate a major source of short-term uncertainty.

He also stated that the crypto market could weaken briefly after expectations adjust. However, he suggested that a clearer outlook may create stronger conditions during the fall. Therefore, the immediate reaction could remain temporary if legislative uncertainty declines.

Bitcoin, Ethereum, and XRP Hold Key Levels as Regulatory Debate Continues

Bitcoin continued trading above $64,400 despite the Senate postponement and broader policy uncertainty. At the same time, Ethereum remained above $1,900, while XRP traded near $1.05. Those price levels reflected a relatively stable market despite delayed legislative action.

The Clarity Act remains one of the most significant digital asset proposals under consideration in Washington. The legislation seeks to separate regulatory responsibilities between the SEC and the CFTC. In addition, it intends to provide clearer compliance standards for digital asset businesses operating in the United States.

Negotiators continue discussing several disputed provisions before the Senate resumes its work. One proposal could require President Donald Trump to divest from certain crypto-related business interests under new ethics rules. Meanwhile, President Trump has continued supporting policies that maintain United States leadership in digital asset innovation instead of allowing China to strengthen its position in the sector.

The delayed vote leaves the regulatory timetable unresolved as lawmakers continue negotiations during the congressional recess. Although the legislation remains active, its final form still depends on bipartisan agreement. Until then, the digital asset market will continue operating without the comprehensive federal framework that many industry participants have sought for years.