Bitcoin dropped after the SEC pushed back a planned exemption for tokenized securities, offsetting optimism over soft US inflation data. The broader crypto market lagged a rally in stocks and AI names even as rate-hike bets cooled.
Bitcoin fell 1% to $63,315.4 on Friday, trading down more than 2% for the week. The drop came as a delay in a major planned government measure for tokenized securities offset optimism over no imminent interest rate hikes following soft US inflation prints.
SEC delays tokenization exemption
The SEC is set to further delay its planned "innovation exemption" for tokenized securities after the White House and Wall Street raised concerns over the proposal's legal footing and market impact, CoinDesk reported on Thursday. The exemption had been expected in part on Friday, but the SEC canceled that meeting late Thursday.
One source told CoinDesk the White House feared the move could complicate ongoing congressional negotiations over the Digital Asset Market Clarity Act. Industry insiders have been told the effort may need to wait for the outcome of that legislation, the source said. SEC staff have also grown more focused on whether the agency has the legal authority and economic analysis needed to justify such relief.
The Clarity Act, a key piece of crypto legislation, has faced numerous delays in the past year amid opposition from banking groups and consumer advocates. Delays in passing the act, which aims to set a regulatory framework for the crypto industry, have also weighed on crypto prices.
Altcoins lag risk assets despite rate cheer
Broader crypto prices largely fell on Friday, lagging gains in broader risk assets even as soft US inflation data for July spurred optimism over no near-term rate hikes by the Federal Reserve. A batch of strong technology earnings also saw traders lean toward chipmaking and AI-exposed stocks over crypto.
Ether fell 1.1% to $1,877.14, while XRP fell 0.7%. Solana fell 1.1%, Cardano fell 1%, and BNB shed 0.8%. Dogecoin fell more than 1%.
Source: Investing.com
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