Bitwise is issuing one of its clearest warnings yet about the future of U.S. crypto — and the message is simple: the clock is ticking.
In a new analysis, the firm argues that continued uncertainty around the Clarity Act could shape the industry’s trajectory for years. With the bill’s progress stalling in Congress, Bitwise says the sector now faces a three-year window to prove its real-world value and become indispensable across the U.S. economy.
Matt Hougan, Bitwise’s CIO, says that without the Clarity Act, crypto remains exposed to shifting political winds and regulatory ambiguity. Market expectations have already cooled — Polymarket odds on the bill’s passage have dropped sharply.
Hougan draws comparisons to breakthrough platforms like Uber and Airbnb, which secured their longevity by scaling so quickly that regulators had to adapt around them. Crypto, he argues, needs to follow the same playbook: become too useful and too widely adopted to ignore.
If that happens, a major repricing of the entire sector could follow.
If not, prolonged uncertainty may keep markets stuck in a “wait and see” environment where only meaningful adoption creates momentum.
For investors, Bitwise recommends positioning around Bitcoin exposure, strong balance-sheet companies, and cash-flowing infrastructure — and taking caution around regulatory-sensitive areas like DeFi, exchanges, and smaller altcoins.
With the Clarity Act in limbo, Bitwise’s message is clear:
regulation won’t unlock the next growth cycle — real utility will.
