Senate to unveil Clarity Act final text as $221M in BTC ETF inflows return

The U.S. Senate is expected to unveil the final language of the CLARITY Act around the July 4 holiday period, according to crypto policy journalist Pete Rizzo, as spot Bitcoin exchange-traded funds recorded $221 million in net inflows on Thursday — the largest single-day total since mid-June.

"The CLARITY Act preserves existing criminal enforcement authorities while creating meaningful new capabilities for investigators," the National Organization of Black Law Enforcement Executives wrote in a letter to Senate Majority Leader John Thune and Minority Leader Charles Schumer, announcing the first major law enforcement endorsement of the legislation.

The bill, which passed the House in July 2025 and cleared the Senate Banking Committee in May 2026, would divide digital asset oversight between the Securities and Exchange Commission and the Commodity Futures Trading Commission. Securities-like tokens would fall under SEC jurisdiction while commodities would be regulated by the CFTC. The legislation also introduces new compliance expectations for digital asset kiosks and improves forfeiture authorities, according to NOBLE's letter.

The regulatory clarity could provide a structural catalyst for institutional capital. Thursday's ETF rebound — led by Fidelity's Wise Origin Bitcoin Fund with $166 million and ARK 21Shares Bitcoin ETF with $91.8 million — broke a nine-day outflow streak that had drained more than $2.2 billion from BlackRock's iShares Bitcoin Trust alone since June 17. Treasury Secretary Scott Bessent has indicated lawmakers are targeting passage during the summer.

ETF Flows Signal Renewed Institutional Appetite

Bitcoin traded at $61,725 as of 12:00 UTC on Friday, extending gains for a third consecutive session after briefly falling below $59,000 earlier in the week. The Crypto Fear & Greed Index ticked up to 21 from 19, remaining in "extreme fear" territory but showing early signs of recovery.

Ethereum spot ETFs posted $29 million in net inflows on Thursday, nearly doubling the prior day's $15 million, while XRP ETFs attracted $6.6 million after two consecutive sessions of outflows, according to SoSoValue data. Cumulative Bitcoin ETF inflows stand at $51 billion with average net assets of $74 billion.

Bitwise chief investment officer Matt Hougan suggested the market could be nearing a bottom, as the inflow recovery coincides with the approaching regulatory milestone.

What the CLARITY Act Would Change

The legislation has drawn support from SEC Chairman Paul Atkins, Senators Cynthia Lummis and Tim Scott, and Treasury Secretary Scott Bessent. Lummis described digital assets as "the country's next important technological frontier" and said the CLARITY Act would help preserve U.S. leadership in innovation.

NOBLE said effective implementation will require cooperation among Congress, the Department of Justice, the Treasury Department, FinCEN, state and local law enforcement agencies, prosecutors, regulators, and industry participants. The organization added that the bill does not alter longstanding federal authorities involving fraud investigations, money transmission business enforcement, conspiracy statutes, sanctions enforcement, and other established investigative powers.

The finalized text is expected to be released around the Independence Day holiday period, setting up a full Senate vote in the coming weeks.

This article is for informational purposes only and does not constitute investment advice.