Crypto News, July 28: CLARITY Act Shelved, Bitcoin Drops in Asian Market Rout

In Washington, momentum can vanish as quickly as it arrives. The Clarity Act now sits on the shelf, while the Bitcoin price slips under renewed pressure after a sharp selloff across Asian markets.

Senate Majority Leader John Thune has shifted attention toward federal nominations and a Russia sanctions bill, delaying debate on crypto legislation. The Digital Asset Market Clarity Act, designed to define SEC and CFTC oversight, now faces an increasingly narrow window before Congress begins its August recess.

SENATE SHELVES CLARITY ACT FOR NOW!

Majority Leader John Thune is prioritizing nominations and a Russia sanctions bill, pushing the crypto market structure legislation aside amid limited floor time, CoinDesk reports.

Clarity is unlikely to reach a vote before next week, the… pic.twitter.com/XKztbFL7cf

That delay arrives at a supposedly bullish moment. Risk appetite was at its top, and now, the delay leaves crypto exposed to fresh volatility.

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The Clarity Act is a reminder that politics don’t move in straight lines. Ethics concerns surrounding public officials’ digital asset holdings continue to complicate negotiations. Meanwhile, a proposed 2029 sunset clause remains another point of contention before lawmakers can reach consensus.

Outside Capitol Hill, opposition continues to build. New York Attorney General Letitia James argues the Clarity Act could weaken states’ ability to prosecute crypto fraud, potentially limiting local enforcement powers. Her criticism adds another obstacle as supporters race against the congressional calendar.

NY Attorney General Targets CLARITY Act

New York Attorney General Letitia James urged Congress to strengthen the Clarity Act instead of weakening state oversight.

She said the bill could preempt state investor protection laws and limit fraud enforcement.

James argued state… pic.twitter.com/bCPyiyeYWW

Not just in the States, regulatory pressure is also unfolding overseas. Thailand’s SEC has filed criminal complaints against Bitkub and two former executives over allegations they concealed a 2021 cyberattack worth about $50 million. Although customers were reimbursed, authorities allege the exchange submitted inaccurate reports, reviving concerns over transparency throughout the industry.

DECRYPT: Bitkub exchange faces criminal charges from Thailand's SEC regarding concealed $47M security breach. pic.twitter.com/JBGyij3Dff

Elsewhere, prediction markets continue advancing despite federal uncertainty. A U.S. judge temporarily blocked Minnesota’s restrictions on platforms including Kalshi and Polymarket, citing potential conflicts with federal commodities law. As the CFTC seeks faster legal clarity, the Clarity Act remains trapped in Washington’s legislative queue.

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The Bitcoin price weakened after Asian equity markets suffered a huge selloff, extending losses from the previous U.S. session. Bitcoin briefly fell below recent support before stabilizing. It’s not just crypto, but a wider retreat from risk assets as investors reduced exposure across multiple markets.

The butchering started with South Korea’s Kospi, which recorded one of its sharpest declines in months, led by heavy selling in major technology stocks. This could be the culprit, dragging the Bitcoin price lower alongside market sentiment.

Recent gains have also begun to lose momentum. Bitcoin price previously rebounded from July lows but struggled to reclaim higher resistance levels as buying pressure softened. Spot Bitcoin ETFs continued attracting inflows over recent weeks, although significant late-week withdrawals showed institutional demand remains sensitive to macroeconomic shifts.

Large holders have largely avoided aggressive accumulation during the latest decline. Strategy maintained its existing Bitcoin position without announcing any additional purchases, instead preserving billions in available cash. At the same time, miners may receive modest relief as network difficulty appears set for its first annual decline in nearly two decades.

Attention now shifts toward the Federal Reserve and Washington alike. Bitcoin price could remain trapped in a cautious range until investors receive clearer signals from policymakers and lawmakers. For now, delayed legislation and fragile market sentiment continue moving together, leaving the Clarity Act and crypto markets waiting for the next decisive chapter.

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