Clarity Act Uncertainty Keeps DeFi’s Bigger Market Bet on Hold

Bitcoin has fallen 21% this year, Ethereum is down 33%, and Solana has dropped 37%, according to Bitwise Chief Investment Officer Matt Hougan’s latest CIO memo.

Hyperliquid gained 72% in a single month over the same stretch, a divergence Hougan reads as a preview of what CLARITY Act passage would do to DeFi valuations relative to Bitcoin itself.The CLARITY Act would draw a formal line between SEC and CFTC jurisdiction over digital assets, replacing years of enforcement-led regulation with a statutory framework.

The House passed the bill 294-134 in July 2025, with 78 Democrats crossing the aisle, and Senate Banking Chairman Tim Scott pushed it through committee 15-9 on May 14 after nearly a year of bipartisan negotiation.

JUST IN: "Crypto wants the CLARITY Act to go through," says Bitwise CIO Matt Hougan.Polymarket currently puts the odds at ~20%. Hougan says a surprise passage would spark a "new major market in crypto," but its failure means a "more gradual path" forward.