Bitwise Outlines Crypto Sectors Benefiting From CLARITY Act Senate Setback

Bitwise Asset Management has identified four crypto sectors that benefited from the CLARITY Act’s Senate setback, according to an analysis by Chief Investment Officer Matt Hougan. Between the failed Senate vote on September 15 and September 30, tokens and platforms in specific segments recorded notable gains, while Bitcoin and Ethereum posted respective increases of 8% and 7% over the measurement period.

Sector Performance and Revenue-Generating Tokens

Hougan's assessment highlighted tokens using platform revenue to repurchase supply as primary beneficiaries. During the tracking period, NEAR gained 104%, Uniswap rose 49%, Pump increased 19%, Hyperliquid rose 15%, and Lighter advanced 10%. The executive noted that uncertainty regarding token buybacks had been a weakness in the proposed legislative text, though the SEC subsequently issued clarifying FAQs on September 25 regarding functional networks with no central party.

Stablecoins and Established Exchanges

Stablecoin platforms retained the ability to offer balance rewards to customers, with Coinbase identified as the largest beneficiary. The enacted GENIUS Act prohibits payment stablecoin issuers from paying interest solely for holding tokens, but Hougan interpreted the treatment as leaving an opening for exchanges to offer third-party incentives. Furthermore, established exchanges preserved existing licensing and brokerage advantages that the proposed legislation would have altered, avoiding market entry barriers for traditional financial competitors and operational separation costs.

Tokenization and Regulatory Outlook

For tokenization businesses, the SEC issued an order on September 17 granting a five-year testing route for qualifying tokenized U.S. stock trading venues through permissioned automated market makers and liquidity pools. Hougan cited Securitize as a beneficiary for its work with BlackRock, Apollo, and KKR. While Hougan saw advantages in the legislative failure, he cautioned that agency decisions offer less protection against political changes under future administrations.

Key facts

• Bitwise identified stablecoin platforms, established exchanges, tokenization businesses, and revenue-generating tokens as beneficiaries of the CLARITY Act's Senate setback.
• NEAR gained 104% and Uniswap rose 49% between the vote and September 30.
• Coinbase was cited as the largest beneficiary among stablecoin platforms retaining room to offer customer rewards.
• The SEC issued an order on September 17 granting qualifying tokenized U.S. stock trading venues a five-year testing route.