Bitwise CIO Matt Hougan has cautioned that the U.S. crypto market could face a critical three-year period if the Clarity Act fails to pass the Senate. The legislation, approved by the House in July 2025, is currently under review by Senate committees, with debates ongoing over investor safeguards and regulatory provisions. Hougan emphasized that without the Act, the crypto industry must demonstrate its indispensability to both everyday Americans and the traditional financial system. Hougan warned that the absence of legislative clarity could leave the current pro-crypto regulatory environment vulnerable to future reversals. He highlighted the need for the industry to showcase real-world adoption of technologies like stablecoins and tokenized securities. The situation is likened to early regulatory challenges faced by companies like Uber and Airbnb. Meanwhile, internal industry tensions have surfaced, with Citron Research accusing Coinbase CEO Brian Armstrong of opposing the Act to protect business interests, following Coinbase's withdrawal of support for the bill.