The collapse of the Clarity Act could give the crypto industry a friendlier regulatory environment in the short term, even as it removes a path toward long-term legislative certainty, Matt Hougan, chief investment officer at crypto asset manager Bitwise, said. Crypto Briefing reported on October 30 that the crypto market rose after the bill failed, reflecting expectations for a more favorable near-term regulatory backdrop. Hougan said some compromises under discussion could have been less favorable to parts of the industry than measures later adopted by federal regulators. Negotiators also discussed closing regulatory gaps around stablecoin rewards, incentives paid in dollar-pegged tokens, amid banks' concerns that such products could compete for deposits. The bill's failure could ultimately benefit platforms such as Coinbase, which use stablecoin rewards to attract customers. The Clarity Act had sought to establish a comprehensive federal market structure for digital assets; if passed, it could have reduced some regulatory barriers for new entrants while imposing new burdens on existing firms.