Bitcoin faces regulatory shifts and shrinking circulating supply

The cryptocurrency market is facing significant regulatory and supply-side shifts. Galaxy Digital has lowered its estimate for the passage of the CLARITY Act in 2026 to just 10%, down from 75% in May. This uncertainty comes as the SEC and CFTC navigate competing interests, with high-profile industry leaders scheduled to meet with the White House to discuss regulatory frameworks.

On the security front, major crypto firms including Anchorage Digital and BitGo are seeking early access to advanced AI models to combat evolving cyber threats. This follows recent security breaches, including a $116 million theft from Coldcard and data breaches affecting users of Trezor and SafePal.

Regarding market dynamics, analysts at CryptoQuant report that approximately 3.56 million BTC—roughly 17.7% of the total supply—has remained dormant for over ten years. While this may indicate lost private keys, it also acts as a deflationary force by reducing the circulating supply available to the market.