Ethereum rises as CLARITY Act vote could bring federal crypto rules

Ethereum edged up 1.8% to $1,845 on Friday, as traders latched onto fresh signs that the CLARITY Act could finally get a Senate vote next week. The move came after Rep. Bryan Steil, chair of the House Financial Services Committee, told reporters he expects the chamber to take up the bill as early as July 24.

The cryptocurrency had been hovering near a technical support zone around $1,810 for most of the week. That level has held firm since mid-June, and several exchange order books show bids stacking up just below it. Bulls see the area as a line in the sand – if it breaks, the next floor sits near $1,740.

Adding to the bullish tilt, spot Ethereum ETFs recorded net inflows of $47 million on Thursday, according to data from SoSoValue. That marks the fourth consecutive day of positive flows after a two-week lull. Institutional buyers appear to be positioning for a regulatory catalyst rather than chasing momentum.

Steil’s comments are the strongest indicator yet that the CLARITY Act, which would create a federal framework for classifying digital assets as commodities or securities, has enough Republican support to clear the Senate. The bill already passed the House in May with bipartisan backing. A Senate version, sponsored by Sen. Cynthia Lummis, has been stalled in committee since last year.

“We’ve been working with leadership to find floor time,” Steil said in a brief interview. “I’m optimistic we can get it done before the August recess.”

Traders are cautious, however. Options markets show elevated implied volatility for July 25 expiry, suggesting many expect a sharp move either way after a vote. The $1,900 call strike has seen open interest climb 22% over the past week, while put buying at $1,800 indicates some hedging against a downside surprise.

The larger picture still depends on the broader macro backdrop. Bitcoin, which often sets the tone for altcoins, held above $62,000 but failed to push past resistance at $63,500. Ether’s correlation to BTC sits at 0.87, near a two-month high, meaning any sudden equity or dollar move could spill into crypto regardless of the regulatory news.

For now, Ethereum has reclaimed its 50-day moving average – a technical win that short-term momentum traders watch closely. The next test will come when Congress actually gavels in. If the CLARITY Act passes, analysts say Ether could quickly test $1,950. A delay or failure could send it back to $1,740 or lower.

Watch for the Senate schedule announcement early next week. That will tell traders whether the bullish setup has real legs or is just another mirage.