Here’s what happened in crypto today

Today in crypto, Bitcoin’s rally gathered pace as optimism over US crypto regulation and expectations of capital rotating out of cooling AI stocks lifted digital assets. Elsewhere, UK lawmakers launched an inquiry into banking barriers facing crypto firms, while White House crypto adviser Patrick Witt postponed military training to help steer the CLARITY Act through the Senate ahead of the August recess

Bitcoin rally gains steam as regulation hopes and AI slowdown boost crypto

Bitcoin briefly climbed back above $67,000 on Tuesday as optimism over US crypto regulation and expectations that cooling AI stocks could drive capital rotation into cryptocurrencies fueled a broad market recovery.

Investors were encouraged after US Treasury Secretary Scott Bessent indicated Congress is close to passing the CLARITY Act, legislation that would establish clearer oversight for the crypto industry. The prospect of a more defined regulatory framework helped lift Bitcoin and Ether while sending crypto-related stocks sharply higher, with exchanges and Bitcoin mining companies among the strongest performers.

Analysts also see a broader shift taking shape in financial markets. After dominating investor attention for much of the past two years, AI-related stocks have begun to lose momentum as concerns over high valuations and heavy infrastructure spending weigh on semiconductor shares. Some market observers believe that cooling enthusiasm for AI could prompt investors to reallocate capital toward cryptocurrencies, particularly if interest rate expectations stabilize.

UK parliamentary group probes banking barriers for crypto firms

A United Kingdom parliamentary group has launched an inquiry into whether crypto businesses and consumers face barriers to banking services, including account access and restrictions on crypto-related transactions.

On Monday, the Crypto and Digital Assets All-Party Parliamentary Group (APPG) said that it would examine how the restrictions affect investment, competition and economic growth. The group said it would assess whether the restrictions are proportionate.

Written submissions from banks, payment providers, crypto firms and other stakeholders are open until Aug. 31, after which the group plans to publish its findings and recommendations.

A January survey by the UK Cryptoasset Business Council (UKCBC) found that 10 crypto exchanges said banks blocked or delayed 40% of transactions to crypto platforms. According to the survey, 70% of respondents said the restrictions had reduced their willingness to invest, expand or hire in the UK.

Patrick Witt defers military training as CLARITY heads to Senate

The White House’s top crypto adviser Patrick Witt said he will no longer take a leave of absence at the end of the month for military training, allowing him to remain at the White House to help advance the CLARITY Act in the Senate.

“Last week, it was reported that I was set to leave for mandatory training as part of my service in the Georgia Army National Guard, right before Clarity hits the Senate floor,” Witt said in an X post on Monday. 

“While I remain committed to fulfilling my service obligation, I am grateful to report that my training has been deferred, and that I will be able to see this effort through to the end,” he added. 

The CLARITY Act, which would create the first comprehensive US regulatory framework for the crypto market, faces a make-or-break deadline to pass the Senate before the Aug. 8 recess. Witt is the White House’s lead negotiator on the legislation.