The Milk Road Show Why the Clarity Act Still Puts Crypto on a Path to New All-Time Highs w/ Matt Hougan
Jan 13, 2026
Matt Hougan, Chief Investment Officer at Bitwise, dives into the recent draft of the Clarity Act and its potential impacts on the crypto market. He highlights the surprising resilience of stablecoin yields, despite headlines claiming otherwise. The bill aims for bipartisan support, addressing unresolved issues like politician self-enrichment. Hougan also discusses the future of DeFi and stablecoins as payment rails, while predicting conditions for a market rebound. Plus, he shares insights on Bitcoin ETFs and why some assets aren’t ETF-ready, making a compelling case for crypto allocation.
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Stablecoin Yield Is Restricted But Not Dead
- The Clarity Act draft restricts stablecoin issuers from paying interest directly to holders while carving out yield mechanisms through platforms like Coinbase.
- Matt Hougan thinks this is a compromise that won't fully block yield because platforms will engineer ways to deliver it to users.
Compromise Bills Travel Best Through Congress
- A bill that no one strongly loves is likeliest to pass Congress because it upsets all sides a little and attracts compromise votes.
- Hougan rates Clarity Act odds above 50% but not certain due to unresolved Democratic concerns like self-enrichment rules.
Defend Self-Custody And Dev Liability Protections
- Protecting self-custody and peer-to-peer transactions in law preserves core crypto rights and enables DeFi growth.
- Watch for the bill's DeFi developer liability protections since they determine whether open-source protocols can survive.