Bitcoin's recent upward momentum has stalled as the US Senate encounters fresh obstacles in passing the Digital Asset Market Clarity Act.
The legislation, which aims to provide regulatory clarity for the cryptocurrency sector, is currently entangled in a dispute over provisions that would explicitly bar the president and other federal officials from issuing or sponsoring digital assets.
The delay in the Senate has triggered a pullback in crypto markets, with Bitcoin reversing earlier gains.
Investors had been pricing in a smoother passage for the bill, driven by intense lobbying from the crypto industry and public support from President Donald Trump.
However, the renewed debate over the executive ban provision has introduced uncertainty, causing traders to scale back risk exposure.
The Clarity Act has been a focal point for the crypto industry, which has long sought a clear regulatory framework to operate within.