CLARITY Act Will End Crypto Winter as Bitcoin’s Four Year Cycle Ends, Says Bitwise Matt Hougan

Key Takeaways

• The CLARITY Act passing could thrust a marketplace surge for Bitcoin and crypto, according to Bitwise’s Matt Hougan.

• Hougan argues that Bitcoin’s cyclical patterns are little applicable successful 2026.

• The CLARITY Act aims to specify which integer assets autumn nether the SEC oregon CFTC.

Industry leaders are progressively focusing connected the imaginable marketplace interaction of the upcoming CLARITY Act.

Some suggest it could extremity the long-running “crypto winter” and thrust Bitcoin (BTC) and different crypto to caller all-time highs.

Matt Hougan, main concern serviceman astatine Bitwise Asset Management, besides argued that Bitcoin’s four-year rhythm has finished, claiming its fundamentals pb successful beforehand of its terms for the archetypal clip successful history.

Hougan weighed successful connected X connected Monday, comparing the authorities to the famed groundhog that predicts the accomplishment of spring.

“The CLARITY Act is the Punxsutawney Phil of this crypto winter,” Hougan wrote.

Polymarket traders look optimistic astir the bill’s chances, assigning an 80% probability that the authorities volition beryllium signed into instrumentality this year.

The CLARITY Act, introduced successful May 2025 by a bipartisan radical of House lawmakers, seeks to resoluteness long-standing regulatory uncertainty successful the U.S. crypto market.

According to the CCN Education Team, the measure is designed to clarify erstwhile integer assets should beryllium treated arsenic securities by the Securities and Exchange Commission (SEC) and erstwhile they autumn nether the Commodity Futures Trading Commission (CFTC).

The authorities cleared the House past twelvemonth and is presently progressing done the Senate, with markups expected this week.

If enacted, the CLARITY Act would delegate the CFTC a cardinal relation successful overseeing integer commodities—including spot markets, exchanges, brokers, and dealers.

Meanwhile, the SEC would support authorization implicit securities-related enactment and definite primary-market fundraising mechanisms.

Proponents accidental this wide part of responsibilities could supply much-needed regulatory certainty for investors.

Hougan elaborated connected the broader Bitcoin marketplace during an interrogation connected the Investopedia podcast, arguing that accepted cyclical patterns whitethorn nary longer dictate terms movements.

“Historically, Bitcoin has moved successful this four-year cycle, 3 large up years and a pullback here… the adjacent would beryllium 2026, truthful according to the four-year cycle, this would beryllium a antagonistic twelvemonth for Bitcoin,” helium said.