Bitcoin moved lower on Friday as fresh regulatory delays in the United States overshadowed optimism surrounding softer inflation data and reduced expectations for an imminent Federal Reserve interest rate hike.
The world’s largest cryptocurrency fell around 1% to $63,315.4 by 02:12 ET, or 06:12 GMT. Bitcoin was also down more than 2% for the week.
The broader cryptocurrency market struggled to match gains seen in other risk assets. Equities performed better during the week as cooling rate hike expectations and strong technology earnings supported artificial intelligence and semiconductor stocks.
SEC Delays Tokenized Securities Exemption
According to a CoinDesk report, the U.S. Securities and Exchange Commission is expected to further postpone its planned “innovation exemption” for tokenized securities.
The proposal has reportedly faced concerns from both the White House and Wall Street over its legal foundation and potential impact on financial markets.
Part of the exemption had been expected to be announced on Friday. However, the SEC canceled a planned meeting late Thursday, adding further uncertainty around the initiative.
Digital Asset Market Clarity Act Remains in Focus
According to the report, the White House was concerned that the SEC proposal could complicate ongoing negotiations surrounding the Digital Asset Market Clarity Act.
The legislation is designed to establish a clearer regulatory framework for the cryptocurrency industry. However, it has faced repeated delays amid opposition from banking groups and consumer advocates.
SEC officials have also reportedly increased their focus on whether the agency has sufficient legal authority and economic analysis to support the proposed exemption.
Continued delays surrounding the Clarity Act have added to uncertainty across the cryptocurrency market and have weighed on digital asset prices.
Crypto Market Lags Broader Risk Assets
Most major cryptocurrencies traded lower on Friday despite softer U.S. inflation data for July.
The inflation figures helped reduce expectations of a near-term Federal Reserve rate hike. Normally, lower interest rate expectations can support risk assets such as cryptocurrencies.
However, investors appeared to favor technology and AI-related stocks following a series of strong corporate earnings reports.
Ethereum, XRP and Major Altcoins Decline
Ether, the second-largest cryptocurrency by market capitalization, fell around 1.1% to $1,877.14, while XRP declined 0.7%.
Solana dropped around 1.1%, Cardano lost approximately 1%, and BNB slipped 0.8%.
Major meme coins also came under pressure. Dogecoin and TRUMP fell more than 1% each, reflecting broader weakness across the digital asset market.
For now, Bitcoin and the wider crypto market remain caught between improving expectations for U.S. monetary policy and continued uncertainty over cryptocurrency regulation.
