As we approach the end of May, the crypto market is gearing up for a new week that holds a series of potentially impactful macro events. These events, ranging from Binance’s legal proceedings in Nigeria to the SEC’s decision on the Ethereum ETF, and the FIT21 crypto bill voting, could have a significant impact on the market’s direction.
These Events Might Determine Market’s Next Move
In recent days, the crypto market has experienced considerable volatility due to concerns about potential interest rate hikes. However, on Thursday, Bitcoin’s price surged amidst a weaker dollar following milder consumer inflation data for April. This positive market sentiment has propelled several crypto assets above their resistance levels. With several major crypto events lined up for the upcoming week, there is anticipation that these events could potentially shift the current market trend.
Binance Prepares For A Critical Week
A Nigerian court recently denied bail for Binance executive Tigran Gambaryan in a case involving tax evasion. The arraignment has been postponed to May 22 after prosecutors filed an amended charge. In a separate money laundering case involving Binance and Gambaryan, the court has adjourned proceedings until May 23 following a request from Gambaryan’s legal team.
The Nigerian Securities and Exchange Commission’s witness, Abdulkadir Abbas, has testified in the case. He is set to be cross-examined by Gambaryan’s attorneys when the court reconvenes next week.
SEC To Decide On Ethereum ETF
The U.S. Securities and Exchange Commission (SEC) is set to announce its decision on the first spot Ethereum ETF application by May 23. However, doubts have arisen regarding the approval of any Ethereum ETFs following a recent filing that suggests Ethereum (ETH) could be classified as a security. This potential classification could have a significant impact on the market.
Experts have highlighted key reasons why the SEC might approve or reject the ETH ETFs. BlackRock CEO Larry Fink mentioned in a CNBC interview that the SEC could approve spot ETH ETFs even if Ethereum is deemed a security. This statement comes after disclosures that the SEC has considered ETH a potential security since April 2023 but still approved ETH futures ETFs in September.
Eric Conner, co-author of Ethereum Improvement Proposal EIP-1559, remains optimistic that the SEC will approve spot ETH ETFs on May 23.
FIT21 Bill Awaits Voting
The House of Representatives is scheduled to vote on the Financial Innovation & Technology for the twenty-first Century Act (FIT21) in the coming week. Nearly 60 crypto companies have signed a letter urging lawmakers to support the bill.
The Crypto Council for Innovation took action on May 16 by signing a letter to House members, emphasizing the importance of backing the FIT21 Act. The bill includes crucial consumer protections such as minimum capital requirements, risk disclosure mandates, bankruptcy protection extensions, segregation of customer funds, and conflict of interest resolutions.
If the bill passes, the Commodities & Futures Trading Commission (CFTC) would be designated as the primary regulator of digital assets, with a few aspects remaining under the SEC’s oversight.
Crypto’s Fate Hinges On Biden’s Decision
On May 16, 2024, the U.S. Senate approved a Congressional Review Act (CRA) to review the SEC’s Staff Accounting Bulletin No. 121 (SAB 121).
Despite rare bipartisan support in the Senate with a 60-38 vote in favor of the bill, President Biden, under the influence of Senator Warren and SEC Chair Gensler, has threatened to veto the resolution if it reaches his desk. Biden has just under a week left to make his decision.
