Senate Blocks Crypto Regulation Bill as Institutional Buying Continues

The US Senate has stalled on voting for the Digital Asset Market Clarity Act, pending legislation that aims to clarify how digital assets are regulated. The bill would settle a long-standing dispute over whether tokens on established blockchains are commodities or securities.

Despite the delay, institutional investors continue to buy Bitcoin and Ether, with spot ETFs taking in $754.69 million last week and whales accumulating over 20,000 BTC worth around $1.2 billion. However, experts caution that this buying is tactical rather than conviction-driven, and a sustained close above $65,000 is needed before the market can claim a recovery.

The delay on the Clarity Act's passage has significant implications for the digital asset industry, which will continue to operate without clarity on regulation. The Senate returns in September with the bill expected to be an early order of business, and the Federal Reserve's next policy meeting follows immediately after, where officials will update their rate projections.