Bitcoin Holds Near $65,000 as U.S. Crypto Regulation Bill Advances

Bitcoin held steady near recent highs on Thursday as market participants focused on legislative progress in Washington. A new draft of a comprehensive U.S. cryptocurrency bill has circulated among lawmakers, signaling a potential step forward in establishing a long-awaited regulatory framework for the digital asset industry.

Clarity Act Draft Advances

A new draft of the Clarity Act, a key piece of market structure legislation, was circulated on Wednesday, marking what lawmakers described as progress toward a final Senate vote, according to reports. The bill is considered a critical step in defining how digital assets will be regulated in the United States.

A significant addition is a new ethics provision designed to prevent conflicts of interest, which would bar the president and other senior officials from transacting in crypto. This section was reportedly added following discussions related to President Donald Trump's financial disclosures, which showed he earned over $1 billion from crypto interests last year.

The draft preserves several key proposals aimed at providing legal certainty for the industry. These include:

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• The Blockchain Regulatory Certainty Act, which would exempt software developers who do not control user funds from being classified as money transmitters.
• New language on federal preemption, provisional registration, and commodity pool operators.

Market Reaction and Broader Context

While the legislative news provided a supportive backdrop, Bitcoin's price saw a minor pullback. The world's largest cryptocurrency fell 0.3% to $65,732.3 as of 02:38 ET (06:38 GMT), though it remained near a five-week high reached earlier in the week, according to Investing.com data.

The broader cryptocurrency market moved in a tight range, tracking Bitcoin's muted performance. Ether (ETH) rose 0.4% to $1,922.24, while other major altcoins like XRP and Solana (SOL) saw modest gains. Market analysts also noted that the recent crypto recovery has been tempered by geopolitical concerns, including ongoing conflict in the Middle East.