The Crypto AI sector faced headwinds this week. Market cap slipped 3.21% following the Senate Banking Committee's decision to shelve its Crypto Market Structure bill—regulatory setbacks often trigger short-term selloffs. Meanwhile, the platform X tightened API restrictions to combat AI spam, a move that's reshaping how data flows through the ecosystem. On the positive side, $WIRE bounced back into the top 10 trending assets after weekly settlements surpassed $1.77 million, signaling renewed trader interest despite broader volatility. The divergence is telling: while macro headwinds weighed on the sector, select AI tokens found footing through solid on-chain activity. Market participants are watching how regulatory clarity—or lack thereof—shapes sentiment going forward.