Tensions with Iran Weigh on Bitcoin, CRYPTO Act Stalled in Senate

Bitcoin hovered around $66,000 as investors kept an eye on two key developments: the CLARITY Act and escalating tensions between the U.S. and Iran.

The Digital Asset Market Clarity Act, or CRYPTO Act, has been stalled in the U.S. Senate due to disagreements over its provisions, particularly a ban on government officials holding large cryptocurrency assets.

Democratic senators want state attorneys general to have authority over enforcing these rules, while the White House and Republican sponsors prefer the U.S. attorney general take charge.

The conflict has caused a rise in oil prices and concerns about energy inflation, which may prompt the Federal Reserve to raise interest rates later this year.