[Digital Today Seung-a Yoo, intern reporter] Bitwise cited the U.S. Securities and Exchange Commission's swift regulatory response as the reason the crypto market remained strong even after the Clarity bill, a digital asset market structure measure, stalled in the U.S. Senate.

On Oct. 1 (local time), blockchain media outlet Coin Post reported that Matt Hougan (매트 호건), Bitwise's chief investment officer, wrote in a memo released on Sept. 30 that "crypto traded long-term certainty for better rules faster" and called it "not a bad trade."

The U.S. Senate on Sept. 15 rejected a motion to end debate and move the Clarity bill to a vote by 49 to 50. The bill made no progress because it did not secure the 60 votes needed to pass. Hougan said bitcoin rose 8% afterward and ethereum gained 7%, while NEAR climbed 104%, Uniswap rose 49% and Avalanche advanced 43%.

Hougan cited four areas that became relatively better off after the bill stalled. The first was stablecoins. He said the Clarity bill discussions included language that would restrict the payment of rewards on stablecoin balances, but the bill's failure left room under the existing framework for exchanges such as Coinbase to continue offering rewards on customers' stablecoin holdings.

Crypto exchanges were also mentioned. If the Clarity bill had passed, regulations were set to be prepared, including a nationwide spot exchange licence and a separation of exchange and broker functions. Hougan said the bill's failure could delay the point at which established large operators such as Coinbase and Kraken face new competition.

For tokenization platforms, attention focused on the SEC's quick move. On Sept. 17, the SEC issued a conditional exemption allowing limited participants to trade tokenized U.S. listed stocks through automated market makers and liquidity pools. The exemption excludes trading venues from the definition of an exchange for a set period and is valid for 5 years. It also limits the number of eligible stocks and trading volume, and requires the products to provide the same rights as traditional U.S. stocks.

Hougan identified Securitize as a beneficiary of the move. He said that if the Clarity bill had passed, some regulatory issues tied to tokenization might have had to wait until the SEC completed additional reviews, but the bill's failure allowed the SEC to move first using its own authority.

Hougan said regulatory uncertainty around revenue-generating tokens has also eased somewhat. The SEC's Division of Corporation Finance on Sept. 25 issued an explanation via a frequently asked questions document saying that merely announcing a buyback plan related to tokens on an already functioning network would not, by itself, be judged to constitute an investment contract. Hougan said this removed "ambiguity" that would have remained if the Clarity bill had passed. The SEC FAQ is not a binding rule with the force of law.

Hougan said the current situation can be summed up as faster rule-making under existing administrative authority, instead of gaining long-term regulatory certainty through legislation. He also cited as a risk factor that administrative actions can change depending on a future administration. Hougan pointed to the possibility that the current regulatory direction could shift if a new administration that takes office in 2029 appoints stricter leadership at the SEC and the Commodity Futures Trading Commission.

Still, Hougan said a major regulatory reversal was unlikely given that major global financial institutions will have built blockchain-based businesses over several years by 2029. This was Hougan's outlook and could change depending on future policy shifts by administrations and regulators.

The episode shows one analysis of how the Clarity bill's failure affected the market. It suggests that regulators such as the SEC can quickly reshape the regulatory environment for crypto assets and tokenization by using their own authority even as congressional legislation is delayed. The market is expected to watch further guidance from the SEC and CFTC, and follow-up steps on stablecoin rewards and tokenized trading as key variables.