Supervision
• Last week, the House passed a resolution rejecting an accounting rule previously formulated by the SEC regarding the handling of crypto assets by listed companies. The rule formulated by the SEC is very clear about anti-crypto, requiring banks to place their clients’ crypto assets on their own balance sheets when they custody them, making it very difficult for most traditional financial institutions to participate in crypto business.
This resolution is likely to be passed by the Senate today (5/16), but Biden previously announced that he would veto the resolution of Congress, so the result is more symbolic. But if the White House changes its mind in the end, it will most likely be interpreted by the market as a key positive.
• The House plans to hold a floor vote on the FIT21 bill in the next two weeks. This is a comprehensive crypto regulatory framework bill (details) promoted by the House GOP last year. It is the most mature crypto regulatory framework bill ever introduced by Congress. Although it is led by the GOP, it has some support from the DEM.
It is expected that the bill will pass the House floor vote, but it has no chance of passing the Senate before the election. Considering the importance of the bill, the market may give a small positive feedback when the mood is good, but it will not have a big impact.

ETH ETF
•There have been some rumors recently that the SEC may reject the ETF application on the grounds that ETH is security in the ETHspot ETF application results to be released next week. If implemented, it may have a further emotional impact on ETH.
• Grayscale’s recent interviews and actions suggest that if the ETH ETF application is rejected, they will not immediately file a lawsuit. The main reason is that the situation of ETH is different from that of BTC, with two issues: security identification and low futures/spot correlation.
• From the above scattered developments, we can see that the political divisions around crypto regulation have become more prominent. In general, the GOP in Congress is very strong and resolute in its support for crypto, and it is supported by some DEMs at the congressional level. However, the opposition from traditional establishment/older generation politicians represented by Biden is also very obvious. Behind this is more of a reflection of the huge differences in attitudes towards crypto and conflicts of interest among people of different age groups. In the long run, generally speaking, the younger generation is more likely to have the upper hand, which is why I am slightly more optimistic about crypto regulation in the long run. Against this background, the overall trend of the subsequent crypto market is likely to be more sensitive to the PB of this year's election.

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