Bitwise CIO Matt Hougan Adjusts His Crypto Outlook After the Senate Vote. Here's What He Changed

Bitwise CIO Matt Hougan reversed a months-long warning about the CLARITY Act within 24 hours of its Senate defeat, and the market celebrated his pivot. But three quiet caveats buried in his memo tell a different story about what he…

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In a memo, Bitwise Chief Investment Officer Matt Hougan compared the CLARITY Act to crypto’s Punxsutawney Phil, suggesting a failed Senate vote would lead to prolonged stagnation for the sector. The bill was defeated on September 15, 2026, by a vote of 49 to 50.

The next day, he withdrew his warning, framing the setback as a speed bump rather than a major obstacle. This change attracted media attention, while the three limitations he kept in his memo went largely unnoticed.

Revisiting Hougan’s Original Call  in January

In January 2026, Hougan indicated that a failure of the CLARITY Act could hamper the expected crypto bull run. He believed passing the bill was vital to the market’s upward movement, a view he held until August.

Following the vote, Bitcoin (CRYPTO:BTC) fell about 4%, Ether 5.2%, and XRP 7.3%. During this time, Bitwise faced pressure of its own and laid off 14% of its workforce, a trend mirrored by Coinbase, Gemini, Crypto.com, and Kraken in the same year.