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The cryptocurrency market edged higher on July 29 after SEC Chairman Paul Atkins backed the CLARITY Act. However, the approaching Federal Reserve decision limited the rebound. The market gained 0.57% over 24 hours. Bitcoin rose 0.62% to $63,895.34, while Ethereum added 1.12% and traded at $1,906.56.
Atkins said on X that he remained committed to helping Congress advance the CLARITY Act. He also offered technical assistance during the legislative process. He said US leadership in digital finance requires a regulatory framework that supports domestic innovators. His comments helped Bitcoin recover the $63,000 level.
The rebound followed a broad market decline on July 28. Reports that the Senate had suspended its review pushed Bitcoin down about $3,000 and below $63,000. Ethereum also lost about $100 and fell below $1,900. Atkins’ statement then helped halt the immediate sell-off, although the wider recovery remained limited.
The Senate Majority Leader placed a Russia sanctions bill ahead of the CLARITY Act. That schedule left 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. It also showed a 29.4% probability of a 25-basis-point increase. Could regulatory support strengthen crypto demand while interest-rate risks continue to favor safer assets? The modest rebound showed that the market still faced competing policy signals.
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Spot Bitcoin ETFs recorded a fourth consecutive day of net outflows. The latest session produced $49.75 million in withdrawals from the regulated products. Institutional observers watched the four-day pattern as a possible sign of portfolio repositioning rather than simple profit-taking. Bitcoin maintained its leading market position despite the continued outflows.
At the same time, Morgan Stanley launched the Morgan Stanley Ethereum Trust and Morgan Stanley Solana Trust on NYSE Arca. The products use the MSSE and MSOL tickers. Both funds charge a 0.14% expense ratio, which CoinDesk described as the market’s lowest. Morgan Stanley also plans to stake part of each trust’s ETH and SOL holdings.
The trusts will pass staking rewards directly to investors instead of retaining them. This structure expands Morgan Stanley’s digital asset range beyond its existing Bitcoin product. Amy Oldenburg, Morgan Stanley’s head of digital asset strategy, said digital assets were becoming more important within diversified portfolios. She said the company aimed to offer products spanning traditional and decentralized asset classes as client interest in digital assets continued to expand.
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.
