

**An Ethereum ecosystem developer warned that CLARITY Act speculation, not the bill itself, poses the biggest near-term risk to crypto prices.** Bitcoin traded at $64,620 and ether at $1,868 as of Friday, with the total crypto market cap at $2.21 trillion, as uncertainty over the CLARITY Act's fate kept traders on edge with 21 days left before the Senate's five-week recess begins Aug. 10. Galaxy Digital Chief Executive Mike Novogratz said negotiations were down to final "word-smithing" around an ethics clause, while Blockchain Association Chief Executive Summer Mersinger called ethics "the big elephant in the room" that could derail the legislation. "For my members and what we are advocating for on the Hill... please don't let it kill all the hard work that we put in the rest of the bill," Mersinger said. The Senate Banking Committee advanced the bill by a bipartisan 15-9 vote in May, but disagreements over conflict-of-interest protections for senior officials and whether stablecoin platforms should offer returns to customers have stalled progress. Spot crypto ETFs have seen $2.7 billion in outflows over the six weeks through July 17, CoinGecko data shows, removing a key source of demand that fueled last year's rally. If Congress fails to pass the bill before the current term ends in January, the legislation would expire and require reintroduction in the new Congress, potentially pushing the process into 2027. That scenario, some market participants argue, could trigger a broad selloff as traders price in prolonged regulatory uncertainty. **CLARITY Act Negotiations Enter Final Stretch** Sen. Mark Warner, a Virginia Democrat involved in the negotiations, said he wanted lawmakers to bring the process to an end. "I want this done," Warner said. "I'm tired of being in crypto hell. I want America to lead in digital assets." Sen. Cynthia Lummis, a Wyoming Republican and one of the legislation's most prominent supporters, issued another call for its passage, saying that genuinely decentralized assets should not be regulated like banks. The bill cannot advance without Republican support. The party holds 53 Senate seats, meaning it would need at least seven additional votes to overcome the expected 60-vote procedural threshold. Missing the Aug. 10 deadline would not automatically kill the legislation — senators could resume negotiations after returning in September or attempt to pass it during the post-election session — but competition from other legislative priorities would leave limited time for a floor vote. **Market Impact Beyond the Bill** The regulatory uncertainty compounds existing headwinds for crypto markets. Bitcoin has fallen about 25% this year after surging above $126,000 in October 2025, briefly testing the $60,000 threshold. Spot trading volume across the top 10 centralized exchanges fell from $2.7 trillion in the first quarter to $1.95 trillion in the second, according to CoinGecko's latest Crypto Industry Report. Chris Perkins, head of Franklin Templeton's active digital asset management unit, said retail risk capital has shifted toward artificial intelligence, contributing to subdued trading volumes. "But institutional building has not stopped, and the underlying network fundamentals continue to strengthen," Perkins said. T. Rowe Price's head of digital assets, Blue Macellari, described the current environment as a classic "crypto winter" rather than an abnormal collapse. "We had a sharp selloff across crypto markets in October and have been in a bear market since then," she said. "The decline is steep, but not unusual." The warning from the Ethereum ecosystem developer reflects a growing concern that the CLARITY Act's political uncertainty could become a self-fulfilling prophecy — with traders selling first and asking questions later, regardless of the bill's actual content. This article is for informational purposes only and does not constitute investment advice.

**Strive's SATA preferred shares have recovered most of their June decline, trading within 3% of par as confidence returns to Bitcoin treasury financing models.** Strive's SATA preferred shares rose 16% to about $97 from a June low of $83.30, moving within 3% of their $100 par value, Yahoo Finance data shows. "I think every action that Strategy has undertaken to strengthen their balance sheet and encourage STRC to go back to par is also working," Jan3 founder and CEO Samson Mow told Cointelegraph. "But everything sort of works in tandem. I think as SATA returns to par, you're going to see STRC return to par too." Strategy's STRC, a similar variable-rate perpetual preferred stock launched in 2025, also fell sharply during the late-June selloff before recovering to about $87, though it remains below par. Strive holds 19,921 Bitcoin, making it the seventh-largest public corporate holder, while Strategy leads with 843,775 BTC, according to BitcoinTreasuries.NET. The improving performance of preferred-share products is part of a broader shift in the Bitcoin treasury sector, Mow said, pointing to Lyn Alden's Orange Juice treasury company — which launched July 15 with plans to operate a Bitcoin treasury — as evidence of firms entering the market with different approaches and a lower Bitcoin cost basis. ## Preferred-Share Model Faces Market Test SATA, introduced by Strive in November 2025, is a variable-rate perpetual preferred stock designed to trade near its $100 par value by adjusting its dividend rate. The structure allows Strive to raise capital for its Bitcoin treasury without issuing additional common shares. Strategy describes similar products as "digital credit." Mow said the recovery of SATA and STRC demonstrates that the preferred-share model remains viable. "Everyone is capitalized for three or more years of dividend payments... there was no reason to panic all along," he said. The rebound comes as Strategy raised $263.5 million through MSTR sales, further strengthening its balance sheet. Mow said these actions are beginning to restore confidence in preferred-share products, supporting his view that Bitcoin has already found its bottom. This article is for informational purposes only and does not constitute investment advice.

Strategy (MSTR) published a new metric showing Bitcoin could decline at a constant annual rate of 11.34% across the weighted duration of its credit structure before its modeled coverage ratio falls below 1.0x, potentially forcing a restructuring. The BTC Floor ARR, introduced as part of a broader metrics overhaul on July 23, represents the minimum sustained Bitcoin growth rate over the credit structure's duration before restructuring becomes a consideration, according to the company's investor relations head Chaitanya Jain. The figure stood at minus 11.34% as of 15:35 UTC on July 24. The metric sits within a suite of new "net" measures that strip out debt and preferred stock claims to show how much of Strategy's Bitcoin reserve belongs to common shareholders. The company's net reserve stands at $36.6 billion, calculated by taking its $55.6 billion Bitcoin reserve (843,775 BTC) and $3.2 billion in dollar reserves, then subtracting $6.8 billion in out-of-the-money convertible debt and $15.5 billion in notional preferred stock obligations — $22.3 billion in senior claims that rank ahead of common equity in a liquidation scenario. Strategy also introduced a Bitcoin Breakeven ARR of 3.22%, the rate at which Bitcoin gains would cover all interest and preferred dividend obligations indefinitely. The company's "flow rate" of approximately minus 11% estimates how far Bitcoin could fall before reserves stopped covering debt and dividends — closely aligned with the new Floor ARR threshold. Under the revised framework, the mNAV accretion threshold is permanently fixed at 1.0 times, with MSTR trading at roughly 1.02 times as of July 24. The metric overhaul arrives as Strategy navigates a prolonged downturn. Bitcoin traded near $65,000 on July 24, roughly 50% below its all-time high, while MSTR sat 84% below its November 2024 peak. The company's flagship preferred stock, STRC, has traded below its $100 par value since mid-May, recently changing hands near $85. Strategy has completed four consecutive weeks without a Bitcoin purchase as of July 19, instead raising $263.5 million through common share issuance to build a $3.225 billion cash reserve governed by its Digital Credit Capital Framework, which requires at least 12 months of expected preferred dividends and interest obligations to be covered. The explicit publication of a restructuring threshold introduces a transparent risk benchmark for the largest corporate Bitcoin holder. If Bitcoin experiences a sustained annual decline exceeding 11.34%, Strategy's modeled coverage would fall below 1.0 times, potentially forcing the company to restructure its credit obligations — a scenario that could pressure Bitcoin markets given the size of Strategy's 843,775 BTC position. *This article is for informational purposes only and does not constitute investment advice.*