Bitcoin Slips After U.S. Lawmakers Delay Crypto Regulation Bill

Bitcoin edged lower in Asian trading on Friday, trimming part of this week’s rebound after U.S. lawmakers postponed debate on a closely watched bill aimed at establishing a regulatory framework for digital assets.

The world’s largest cryptocurrency fell 0.5% to $95,808.5 by 01:06 ET (06:06 GMT). Bitcoin had climbed as high as $96,000 earlier in the week, but the rally lost momentum as broader sentiment toward crypto markets remained cautious. Despite the pullback, Bitcoin was still up nearly 6% for the week after a subdued start to the year.

Optimism around potential U.S. regulatory clarity had fueled part of this week’s advance. That optimism faded after lawmakers delayed discussion of the bill, following public opposition from Coinbase Global’s chief executive Brian Armstrong. Armstrong criticized provisions affecting stablecoins, particularly limits on the ability of crypto firms to offer yields or rewards on customer holdings.

Markets had initially welcomed the bill as a step toward long-sought regulatory clarity. However, concerns over its treatment of stablecoins cooled enthusiasm among crypto investors. Coinbase, the largest crypto exchange in the United States and a major donor during the 2024 election cycle, is widely viewed as having significant influence over crypto-related legislation.

This week’s gains in Bitcoin were also supported by corporate activity. Strategy, the world’s largest corporate holder of Bitcoin, disclosed a purchase of more than $1 billion worth of the cryptocurrency, reigniting hopes of renewed institutional demand.

Retail appetite, however, remained weak. Bitcoin continued to trade at a discount on Coinbase compared with global averages, a signal that U.S. retail sentiment remains fragile. That softness has kept rallies in check even as prices recovered from early-year lows.

Altcoins mirrored Bitcoin’s hesitation on Friday but were still sitting on modest weekly gains. Ethereum slipped 0.4% but was up more than 7% for the week. Solana fell 1% on the day yet remained up over 5% for the week, while BNB and Cardano also held small weekly advances. Meme tokens Dogecoin and $TRUMP both dropped around 2%.

The broader picture suggests that while bargain buying and corporate interest have provided short-term support, the crypto market remains sensitive to regulatory uncertainty and fragile retail confidence.