10x Research's primary analysis highlights significant events unfolding around regulation, presidential debates, and political influences within the crypto sector that could dramatically sway crypto market trends and prices by the upcoming May 28 deadline.
On May 8, 2024, Grayscale withdrew their 19b-4 filing for an Ethereum futures ETF, leading to uncertainty among experts. Additionally, the US House of Representatives voted against the SEC's crypto accounting policy, limiting banks' ability to handle crypto customers. SEC Chair Gensler defended the decision, and President Biden voiced his support, implying a continued drive against banking in the crypto industry by the Democratic party.
In contrast, former President Trump held a fundraising event targeting crypto owners which swayed public sentiment, portraying Republicans as pro-crypto liberties and Democrats as anti-crypto.
In the current political climate, Biden's decision to engage in two live debates with Trump hints at a desperation move. On May 20, the SEC's request to tweak ETF filings hinted at potential approval of an ETH Spot ETF, causing a 20% spike in Ether prices.
Fidelity's change of clause in its application from ETH staking demonstrated a shift in the SEC's stance, indicating a likelihood of ETF approval without staking.
Biden's deadline to veto the Accounting Bulletin No. 121, which is on May 28, will be pivotal in identifying the Democratic stance in crypto. If the bulletin is signed into law, it could signal that Democrats have become pro-crypto supporters.
Meanwhile, Super PACs backed by the crypto sector have raised over $100 million, outpacing 'Make America Great Again' funding from Trump. Given that five out of six crypto candidates won previous primary races, the crypto sector's influence is undeniable.
With Bitcoin currently at $70,000 and Biden's decision on the bulletin looming, the crypto bull market could soon enter a new dimension of growth or face potential setbacks, depended on whether Democrats shift towards a pro-crypto stance.