Why Is Bitcoin Struggling to Break Higher?
Stalled US Crypto Regulation
The CLARITY Act – the main US bill setting out a federal framework for digital asset market structure – has repeatedly missed its expected passage windows in 2026. The Senate Banking Committee advanced the bill 15–9 in a May 2026 markup, but disagreements over government-ethics provisions and stablecoin yield rules have stalled a full floor vote. The Senate filed a procedural cloture motion on 8 August 2026 before leaving for recess without a vote; a floor vote is now scheduled for 15 September 2026 (Bitcoin Foundation; CoinDesk).
Separately, the US Securities and Exchange Commission (SEC) abruptly postponed a scheduled vote on new capital-raising rules for crypto startups on 14 August 2026, citing a scheduling issue (investingnews.com). Together, these delays extend the period of regulatory uncertainty that has made institutional and ETF investors more cautious.
Cautious ETF Demand
Spot Bitcoin ETF flows have been described as cautious rather than strongly positive or negative in recent sessions, reducing one of the key sources of incremental buying pressure that helped drive Bitcoin’s price higher earlier in its cycle (Sunday Guardian Live).