The market mood in crypto cooled sharply after a quick spike in optimism. According to the Crypto Fear & Greed Index, the reading fell by 12 points on Friday, dropping from 61 to 49.

That swing moved the gauge from “greed” into a “neutral” zone in a single session. Bitcoin had jumped about 4.5% earlier in the week to roughly $97,700, which helped push sentiment higher, but the focus shifted toward politics and lawmaking in Washington.

Regulatory Concerns Shake Markets

Based on reports, the main trigger was debate over a Senate version of a long-awaited crypto market structure bill. The measure would set out how US regulators oversee digital assets and includes language that would tighten rules around stablecoin yields.

Several…