Bitwise Chief Investment Officer Matt Hougan revealed in a September 30 weekly memo that four key crypto sectors—stablecoins, exchanges, tokenization platforms, and buyback-driven tokens—benefited directly from the collapse of the US CLARITY Act. The legislative proposal failed to advance in the Senate after a 49 to 50 vote on September 15, falling short of the required 60 votes.
Regulatory Stalls Preserve Exchange Moats and Yield
Hougan noted that the failed bill would have prohibited platforms from offering stablecoin yields, backed by penalties reaching up to $5 million per violation. Without its passage, the 2025 GENIUS Act remains in force, restricting only token issuers from paying interest rather than platforms. Hougan singled out Coinbase as a major winner because it actively uses stablecoin rewards to attract new customers.
Furthermore, the bill aimed to establish a national spot license, which would have enabled traditional finance firms to enter digital asset trading easily. In its absence, established trading venues Coinbase and Kraken preserve competitive moats built through state-by-state licensing. The bill would have also restricted combined exchange and brokerage services. “Clarity would have limited exchanges’ ability to bridge these two services, raising costs. That’s now off the table. Advantage: exchanges,” Hougan wrote.
SEC Rulings Accelerate Tokenization and Token Buybacks
Following the legislative stall, administrative agencies acted swiftly. Just two days after the Senate vote, the Securities and Exchange Commission (SEC) granted a five-year exemption for tokenized US stocks. Hougan identified Securitize, the transfer agent for BlackRock's BUIDL fund, as a core beneficiary as tokenized stocks capture DEX market share. Additionally, September 25 guidance from the SEC confirmed that buyback announcements on a functional network do not inherently create a security, aligning with broader trends as the SEC tightens crypto token buyback guidance.
“This is a great example of why Clarity’s failure was a blessing in disguise,” Hougan stated. “Crypto sacrificed long-term certainty for better rules, faster. That’s not a bad tradeoff.” Asset performances following the September 15 vote reflect these market shifts:
- NEAR Protocol (NEAR) climbed 126.62% following the buyback guidance.
- Bitcoin (BTC) rose 10.39% over the same timeframe.
- Ethereum (ETH) gained 6.86%.
Why It Matters
While direct SEC exemptions provide fast operational clarity, reliance on agency actions rather than statutory legislation creates inherent political exposure. Former New York Governor Andrew Cuomo pointed out that administrative guidance remains vulnerable if a new Congress scrutinizes agency rules following upcoming elections. Industry participants must carefully track whether the regulatory moats for exchanges and tokenization platforms remain intact under future leadership transitions.
