The cryptocurrency market edged higher on July 29 after SEC Chairman Paul Atkins voiced support for the CLARITY Act, but the rebound remained limited as traders awaited the Federal Reserve’s interest rate decision. Bitcoin rose 0.62% to $63,895.34, while Ethereum added 1.12% and traded at $1,906.56. The overall market gained 0.57% over 24 hours.
SEC Support Halts the Immediate Crypto Sell-Off
Atkins stated on X that he remains committed to helping Congress advance the CLARITY Act and offered technical assistance during the legislative process. He emphasized that U.S. leadership in digital finance requires a regulatory framework that supports domestic innovators. His comments helped Bitcoin recover the $63,000 level after a broad market decline on July 28, when reports that the Senate had suspended its review pushed Bitcoin down about $3,000. Ethereum also lost about $100 and fell below $1,900 before Atkins’ statement halted the immediate sell-off.
Senate Delay and FOMC Decision Restrict Demand
The Senate Majority Leader placed a Russia sanctions bill ahead of the CLARITY Act, leaving little time for a vote before Congress began its August recess. Attention also shifted to the Federal Reserve’s rate decision at 2 p.m. Eastern Time on July 29. High borrowing costs can support demand for Treasuries and dollar assets. CME data showed a 70.6% probability that the Fed would keep interest rates unchanged and a 29.4% probability of a 25-basis-point increase. The modest rebound demonstrated that the market still faced competing policy signals.
Bitcoin ETF Outflows Meet New ETH and SOL Funds
Spot Bitcoin ETFs recorded a fourth consecutive day of net outflows, with the latest session producing $49.75 million in withdrawals. Institutional observers viewed the four-day pattern as a possible sign of portfolio repositioning rather than simple profit-taking. Meanwhile, Morgan Stanley launched the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust on NYSE Arca, using the tickers MSSE and MSOL. Both funds charge a 0.14% expense ratio, described as the market’s lowest. Morgan Stanley also plans to stake part of each trust’s ETH and SOL holdings, passing staking rewards directly to investors. Amy Oldenburg, head of digital asset strategy at Morgan Stanley, said digital assets were becoming more important within diversified portfolios.
Conclusion
Atkins’ support helped Bitcoin and Ethereum recover, but Senate delays, the FOMC decision, and four straight Bitcoin ETF outflow days limited momentum. Morgan Stanley’s low-cost Ethereum and Solana trusts added another institutional route into digital assets. Attention now turns to the Fed announcement and Congress’s next steps.
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