Bitwise CIO Matt Hougan stated Wednesday that the crypto market has rallied since the US Senate failed to advance the CLARITY Act, arguing that the legislation’s collapse allowed regulators to move faster on industry rules.

Crypto gains momentum despite legislative setback

Hougan noted that Bitcoin (BTC) has gained 8% and Ethereum (ETH) 7% since the vote, while several altcoins posted larger gains. NEAR rose 104%, Uniswap (UNI) gained 49% and Avalanche (AVAX) advanced 43%.

Although the crypto industry backed the legislation for the regulatory certainty it promised, Hougan stated that the final negotiations required compromises that could have restricted parts of the sector.

Stablecoins were among the biggest areas affected by the…