Bitcoin near $81,000 amid Middle East tensions

It had risen as high as $82,000 over the weekend, but trimmed a bulk of its gains by Monday

Bitcoin steadied on Monday, cutting short a weekend rebound as elevated Iran tensions largely offset optimism over progress towards a U.S. regulatory framework.

The world’s largest crypto rose 0.2% to $80,833.9. It had risen as high as $82,000 over the weekend, but trimmed a bulk of its gains by Monday.

Caution before a key U.S. consumer price index inflation print due this week, as well as a top-level U.S.-China summit, also weighed on sentiment.

Tensions between Iran and the U.S. grew over the weekend, especially after the U.S. president largely rejected Tehran’s response to a 14-point peace proposal.

Trump called Tehran’s response “totally unacceptable.” Iran rejected U.S. calls to dismantle its nuclear operations and also called for a shorter suspension of its uranium enrichment activities.

Iran outlined plans for an end to the war and a gradual restoration of commercial shipping through the Strait of Hormuz. Tehran also demanded that the U.S. lift its blockade of the country before any nuclear deal can be negotiated.

The weekend development pointed to little immediate de-escalation in the Iran war.

In related news, U.S. Senators were seen preparing a session to consider a long-delayed act– the Clarity Act– to establish a crypto regulatory framework.

The Senate Banking Committee is scheduled to hold a crucial markup hearing for the Clarity Act on May 14, with the goal of advancing the bill.

Lawmakers were seen reaching a potential compromise on a long-running stalemate over stablecoin yield– specifically that the act will ban bank deposit-style passive yields but allow rewards linked to active transactions and staking– addressing concerns for both crypto and bank industry lobbyists.

If approved by the committee, the bill will head for a full Senate vote in early-June. The Clarity act is aimed at establishing a broader regulatory framework for crypto, giving the industry more legitimacy in U.S. markets.