The asset manager argued that without federal legislation, the industry has three years to become indispensable before political winds potentially shift.
The asset manager argued that without federal legislation, the industry has three years to become indispensable before political winds potentially shift.Bitwise said in a blog post Monday that Polymarket odds for the Clarity Act have fallen from 80% to 50% following industry pushback.
If the bill fails, Bitwise believes crypto must achieve mass adoption in stablecoins and tokenization to force a regulatory hand. The firm anticipates a sharp rally upon the bill's passage, while a failure would likely lead to a "slower ascent" tied to proven utility., the investment manager warned that the stalling of the Clarity Act in Congress could shift the market from a speculative bull run into a grueling "show me" phase.According to Bitwise CIO Matt Hougan the Clarity Act is essential for cementing a current pro-crypto regulatory environment into permanent law. Without it, the the industry remains vulnerable to the whims of future administrations. Hougan pointed out that market sentiment on whether the bill will become law has soured recently. While Polymarket traders in early Januaryof the bill passing, those odds have plummeted to roughly 50% after figures like Coinbase CEO Brian Armstrong labeled the current draft unworkable.Should the legislation stall, Hougan argued that crypto must follow the path of disruptive giants like Uber and Airbnb, which survived regulatory grey areas by becoming too popular for lawmakers to ignore. He suggests the industry has roughly three years to make stablecoins and tokenized assets indispensable to the American economy; if it succeeds, favorable regulations will follow by necessity, but if it remains on the fringes, a change in Washington could prove disastrous. This legislative uncertainty creates two distinct pathways for market returns. Bitwise expects a sharp rally if a workable version of the Clarity Act passes, as investors would immediately price in the guaranteed expansion of blockchain finance. Conversely, a failure to pass the bill would likely result in a "wait and see" market, where price appreciation is capped by regulatory skepticism and contingent on hard evidence of real-world adoption. While the asset manager remains optimistic that the administration will deliver on its pro-crypto promises, it advises investors to prepare for a "slower ascent" should the legislative foundation remain unsettled. Wall Street broker Benchmark said failure to pass legislation would delay, not derail, crypto’s maturation, leaving the U.S. market operating below its potential as investors favor bitcoin-centric exposure, strong balance sheets and cash-flowing infrastructure over regulatory-sensitive segments such as exchanges, decentralized finance and altcoins.AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence toPudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token. The ecosystem now spans phygital products , games and experiences , and a widely distributed token . While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility. A crypto lobby group said it found "increased hostility" from British banks, casting a shadow over the global cryptocurrency leadership the country said it is vying for.U.K. banks are increasingly blocking or limiting customer transfers to crypto exchanges, even those platforms registered with the Financial Conduct Authority. A survey by the UK Cryptoasset Business Council found that 80% of exchanges saw more customers facing bank transfer blocks in 2025, with 40% of transactions reported as blocked or delayed. Major banks including HSBC, Barclays and NatWest impose caps on transfers to crypto platforms, while others such as Chase UK, Metro Bank, TSB and Starling Bank fully block such payments, citing fraud and consumer-protection concerns.
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