Bitcoin Slips Below $64K As Crypto Clarity Act Stalls

Bitcoin dipped to around $63,634 after sliding 2% over a 24 hour period. The top cryptocurrency even touched lows near $62,784 during the session. Traders are reacting to fading expectations for the long awaited crypto Clarity Act, which currently sits at a 35% chance of passing this year on prediction markets.

The legislation hit roadblocks in Congress due to disagreements over stablecoin yields and ethics rules. Major financial institutions like Fidelity and Goldman Sachs support the bill, but some Democrats argue the current text falls short. Lawmakers introduced an updated version last week to address ethics concerns by banning government officials from issuing or promoting digital assets, yet banking lobbyists remain worried about losing deposits to crypto exchange yields.

Lawmakers face a packed voting schedule this week before starting a five week summer recess. Republicans are pushing for bipartisan support to advance the regulatory framework. Market watchers should keep an eye on Capitol Hill over the coming days to see if any surprise votes manage to save the bill before lawmakers leave town.