TradingKey - With the FOMC rate decision looming, the US SEC Chairman's support for the CLARITY Act has a very limited impact on the crypto market.

On July 29, US SEC Chairman Paul Atkins voiced support for the CLARITY Act, leading to a modest rebound in the cryptocurrency market, which rose 0.57% over the past 24 hours. Bitcoin ( BTC) rose 0.62%, temporarily trading at $63,895.34; Ethereum ( ETH) rose 1.12%, trading at $1,906.56.

Bitcoin Price Chart, Source: CoinMarketCap

This morning, Paul Atkins on X platform posted, "I am committed to supporting Congress in advancing the CLARITY Act, including providing technical assistance. America's leadership in the digital financial revolution means energizing US innovators with a regulatory framework to match."

Following the announcement, the sell-off in the crypto market was halted, and Bitcoin reclaimed the $63,000 mark. Yesterday, reports emerged that the US Senate had suspended its review of the CLARITY Act, causing cryptocurrencies to plunge across the board; Bitcoin dropped by about $3,000, falling below the $63,000 threshold, while Ethereum fell by $100, losing the $1,900 level.

Despite the support expressed by regulators, the US Senate Majority Leader prioritized the sanctions bill against Russia on the agenda, leaving little hope for a vote on the CLARITY Act before Congress's August recess. In addition, the Federal Reserve (Fed) is scheduled to announce its interest rate decision at 2 p.m. Eastern Time on Wednesday (July 29). The risk of interest rates remaining high for an extended period or even rising further has significantly boosted the attractiveness of US Treasuries and US dollar assets, subjecting high-risk assets like cryptocurrencies to intense selling pressure. According to the latest CME data, there is a 70.6% probability of maintaining the current interest rate, and a 29.4% chance of a 25-basis-point rate hike.

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