Bitcoin fell 1% on the day and was trading below $66,000, while the broader crypto market also moved lower. Ethereum was holding near $1,900, and several altcoins gave back part of their recent gains.

The main focus in crypto policy remained the Clarity Act, a market structure bill designed to establish a clearer regulatory framework for digital assets by defining the respective jurisdictions of the Securities and Exchange Commission and the Commodity Futures Trading Commission. The legislation has moved closer to a vote but is facing new political obstacles in the Senate.

Pro-Crypto Democrats Raise Concerns Over Clarity Act Provisions

Eleanor Terrett reported a new development in the Clarity Act debate, saying that some pro-crypto Democrats are dissatisfied with several parts of the bill.

“A group of pro-crypto Democrats say they’re unhappy not only with the Clarity Act’s ethics provisions as they currently stand, but also with several other areas of the bill, including its illicit finance and conflicts of interest provisions. The bill’s path to 60 votes remains challenging.”

The issue is significant because the Clarity Act needs 60 votes to pass the Senate. Republicans cannot reach that threshold without Democratic support.

NEW: A group of pro-crypto Democrats say they’re unhappy not only with the Clarity Act’s ethics provisions as they currently stand, but also with several other areas of the bill, including its illicit finance and conflicts of interest provisions. The bill’s path to 60 votes… pic.twitter.com/DUySDemvjR — Eleanor Terrett (@EleanorTerrett) July 22, 2026

The ethics package was negotiated between the White House and GOP senators Lummis and Moreno, but Democrats have not signed off on it. Several points remain under dispute.

One area of disagreement is Department of Justice enforcement authority. Democrats are strongly opposed to giving the DOJ civil enforcement authority without a role for state attorneys general.

Another concern involves illicit finance provisions. Some Democrats believe the bill does not go far enough to prevent crypto from being used for illicit activities.

Conflicts of interest are also part of the debate, with concerns remaining over potential conflicts involving federal officials and digital assets.

As a result, the bill’s path to 60 votes remains difficult. Bipartisan negotiations are expected to continue over the coming days. Republicans have released updated text, but Democratic pushback means the legislation is not yet assured of passage and would require compromise to advance. The outcome carries weight for the broader digital asset industry, which has been calling for legislative clarity as the SEC continues to pursue enforcement actions against major crypto firms under existing securities laws.

Bitcoin ETFs Record $900 Million in Weekly Inflows

While the Clarity Act faces political challenges, Bitcoin exchange-traded funds recorded stronger inflows. U.S. spot Bitcoin ETFs, which launched in January 2024, have become a key vehicle for institutional and retail exposure to Bitcoin through traditional brokerage accounts.

Bitcoin ETFs attracted more than $900 million in inflows last week, the largest weekly total since early May. That represented a sharp increase from $197 million in inflows during the previous week.

BlackRock’s IBIT led the increase, drawing $193 million last week after attracting $282 million the week before. On Monday and Tuesday, IBIT recorded additional inflows of $115 million and $164 million.

BREAKING: Bitcoin ETFs attracted +$900 million in inflows last week, the largest weekly inflow since early May. This marks a sharp acceleration from +$197 million in inflows in the prior week. The largest Bitcoin ETF, $IBIT , led the surge, attracting +$193 million last week,… pic.twitter.com/tr8lo363oX — The Kobeissi Letter (@KobeissiLetter) July 22, 2026

Those figures brought total IBIT inflows to $501 million so far in July, putting the fund on pace for its largest monthly intake since April and the third-largest monthly total this year.

On July 23, U.S. spot Bitcoin ETFs recorded total net inflows of $68.99 million, led by BlackRock’s IBIT with $38.78 million. Spot Ethereum ETFs drew $72.64 million, with BlackRock’s ETHA posting the largest single-day inflow at $53.47 million.

Grayscale Says Bear Market Could Extend to September or October

Grayscale also released its outlook on the current bear market. The firm said Bitcoin’s current bear market could continue until September or October if the traditional four-year cycle — a pattern tied to Bitcoin’s scheduled halving events, the most recent of which occurred in April 2024 — holds.

According to Grayscale, previous downturns typically bottomed about a year after the market peak and produced average drawdowns of roughly 80%.

However, Grayscale said it favors a macro-driven framework. The firm argued that Bitcoin is becoming a more mature asset and that its performance increasingly depends on economic growth and real interest rates.

Grayscale said Bitcoin may already have bottomed if the U.S. economy remains resilient and the Federal Reserve avoids further rate increases.

Under the traditional four-year cycle, the bear market would point to a September-to-October bottom. Grayscale’s macro framework suggests that economic conditions and Federal Reserve policy could alter that timeline.