Bitcoin slides below $63k as regulatory delays offset rate cheer

Bitcoin experienced a decline on Friday as a delay in a significant government measure for tokenized securities largely counteracted optimism stemming from the absence of immediate interest rate hikes following muted U.S. inflation figures. The largest cryptocurrency experienced a 1.4% drop to $62,912.40 by 05:22 ET (09:22 GMT) and continued its weekly downtrend, trading over 2% lower.

Other crypto markets also trailed a rebound in risk-driven assets, particularly equities, buoyed by easing rate hike expectations and positive tech earnings, which supported artificial intelligence stocks. The U.S. Securities and Exchange Commission (SEC) is anticipated to further postpone its planned innovation exemption for tokenized securities due to concerns raised by the White House and Wall Street regarding the proposal's legal standing and potential market impact, according to CoinDesk.

The exemption, initially expected to be announced on Friday, was rescheduled after the SEC postponed the meeting in late Thursday, according to sources. The White House is apprehensive that the move could complicate ongoing congressional negotiations over the Digital Asset Market Clarity Act. Industry insiders have suggested that the effort may need to be postponed until the outcome of the legislation is determined.

SEC staff have become increasingly preoccupied with the agency's legal authority and the economic analysis required to justify such relief. The Digital Asset Market Clarity Act is a crucial piece of crypto legislation that has encountered multiple setbacks in the past year, facing significant opposition from banking groups and consumer advocates.

Delays in enacting the act, which seeks to establish a regulatory framework for the crypto industry, have also impacted crypto prices. Cryptocurrencies such as Ether, XRP, Solana, and BNB also experienced declines, while Dogecoin and $TRUMP faced minor losses.