Lawmakers delve into crypto -5 key developments this week


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  • The crypto and traditional banking industries have a relatively busy week ahead on the economic calendar, with US and Chinese economic indicators likely to move the dial.
  • Draft of the Republican Digital Asset Market Structure Bill could elicit anti-crypto rhetoric from the opposing party.
  • The direction of the XRP price will depend on public opinion regarding the SEC v. Ripple case as the release date of the Hinman speech-related documents approaches.

As the global crypto market continues to evolve and capture mainstream attention, lawmakers and regulators worldwide have started to take a closer look at this rapidly expanding sector. In this week’s crypto outlook, analysts highlight five key developments that have caught the attention of market participants and industry observers alike.

Crypto heads for a busy week regards China and the US

The economic agenda for the coming week is packed. The market’s attention will shift to the US services sector with the release of the US Jobs Report. On Monday, people will be paying attention to the crucial ISM Non-Manufacturing PMI. Recession worries would increase with a drop in service sector activity.

However, Chinese economic statistics should also be taken into account by investors. The Chinese economy has been a disappointment since the transition to zero-COVID policy, and the market has been increasingly sensitive to this fact.

It is important to take into account the Caixin services PMI (Monday), trade statistics (Wednesday), and inflation numbers (Thursday). For the crypto market, this is a double-edged sword. Bearish indicators include those that point to a rough landing in the United States. 

On the other hand, if the Fed became more hawkish, it may dampen consumer demand. The CME FedWatch Tool now predicts a 25.3% chance of a rate hike in June, up from 20.4% previously. The likelihood of a rate hike of 25 basis points was 64.2% a week ago.

image 116
Source; The CME FedWatch Tool

House Committee on Agriculture to hold hearing on Digital Assets on June 6

A hearing titled “The Future of Digital Assets: Providing Clarity for Digital Asset Spot Markets” will be held by the US Committee on Agriculture next Tuesday. GT Thompson, Chairman of the Committee on Agriculture, will preside over the conference, which comes as the issue of regulation gains prominence beyond the US administration.

As a result of the current crypto regulatory climate in the US, major companies in the space have been incentivized to take their operations abroad. Some of the biggest names in crypto have spoken out against the Biden administration’s anti-crypto rhetoric and the SEC’s motto of regulation through enforcement. These include Ripple and Coinbase (COIN).

Susan Friedman, head of policy at Ripple, commented on the Tuesday hearing as follows:

While the upcoming June 13 HFSC hearing is an important one for crypto, the one being held next week by the House Committee on Agriculture is equally so. Congressman GT Thompson has been a steadfast supporter of the call for clarity in this space.

Susan Friedman

The famous SEC vs Ripple case

This week is likely to see a rise in investor attention toward the ongoing SEC v. Ripple case. On June 13, the SEC will release full versions of documents linked to the controversial William Hinman speech. Despite the failure to keep the speech-related materials secret, the XRP community is still holding out hope for a satisfactory resolution.

While a complete victory for Ripple may seem like the best case scenario, it’s possible that the case might go on for years if the SEC decides to appeal. A settlement, in contrast, would put a stop to the more than two years of litigation and give the digital asset market a chance to start fresh. 

image 117
Source; TradingView

The market will likely respond to any signs of a compromise. This week, XRP increased in value by 8.05%, to $0.52143, while the total crypto market fell by 1.83%, to $1.111 trillion.

Insights into the development of Ethereum staking

A record high of 404,704 ETH was staked on Thursday, pushing the net staking balance 422% higher to a surplus of 400,290 ETH. The improved ATH should help ETH in the long run. The surge, however, was not enough to make the $2,000 significant.

If staking inflows continue to rise and risk appetite improves, Ethereum (ETH) could break back above $2,000 this week for the first time since May 6. However, it is also important to take into account Ethereum modifications. 

The next official test network for EIP 4844, which attempts to enhance scalability, is apparently being prepared by Ethereum developers. This week, Ethereum dropped by 0.83% to $1,893.

Democrats response to the proposed reorganization of the digital asset markets

Following the publication of the Draft Bill on Digital Asset Market Structure, investors may have to deal with reactions from the US Administration and SEC Chair Gary Gensler.

Significantly, a rise in anti-crypto rhetoric would put buyer demand to the test. The Digital Asset Market Structure Bill’s success will be dependent on bipartisan support, which appears doubtful based on recent remarks.

On Friday, US President Joe Biden signed the US Debt Limit Suspension Bill, preventing the US from defaulting on Monday. In light of increased Republican legislative activity, the Administration may shift its focus to the digital asset area.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decision.

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Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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