Crypto sentiment slips as uncertainty grows over US market structure bill

Crypto market sentiment has declined after reaching a multi-month high, as divisions emerge within the US crypto industry over a proposed Senate market structure bill.

The Crypto Fear & Greed Index fell 12 points on Friday to a neutral score of 49, down from 61 a day earlier.

The previous reading marked the highest sentiment level since October, when markets later suffered a sharp sell-off.

Bitcoin rose around 5% on Thursday before sentiment weakened, reflecting growing policy-related concerns.

Santiment said the price move “appeared more than justified based on continued smart money accumulation, and retail traders dumping.”

Sentiment shifted after industry leaders criticised provisions in the Senate bill governing oversight of crypto markets.

Lawmakers plan to divide regulatory authority between US agencies, but some lobbyists objected to restrictions tied to stablecoin yields.

Coinbase CEO Brian Armstrong withdrew support, saying the proposal “would be materially worse than the current status quo” and that the company would prefer “no bill than a bad bill.”

The Senate Banking Committee postponed its planned markup, citing the need for additional backing, while the Agriculture Committee delayed its own review until late January.

Venture capitalist Kyle Chasse said the delay is “a BULLISH signal,” adding that markets “didn’t” collapse and are “actually holding up.”

At the time of reporting, Bitcoin price was $95,661.00.