Bitcoin rises, but gains capped after Iran-U.S. setback

Investors were also cautious ahead of a key U.S. consumer price index report this week, as well as a top-level China-U.S. summit

Bitcoin ticked up on Monday, but gains were capped after a setback between Iran and the U.S. Still, progress towards a U.S. domestic regulatory framework kept the mood positive.

The world’s largest crypto was last up 1.4% to $81,878.5 by 20:51 GMT. It had risen $82,431.7 over the weekend.

Investors were also cautious ahead of a key U.S. consumer price index report this week, as well as a top-level China-U.S. summit.

Over the weekend, Iran’s state media said Tehran had formally responded to a U.S. plan to end their more than two-month old war. The response called for an end to fighting on all fronts, recognition of Iran’s sovereignty over the critical Strait of Hormuz, and U.S. compensation for war damages.

However, the U.S. president termed it “totally unacceptable”.

In the 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.