Upcoming Crypto Highlights for the Following Week: Binance vs. Nigeria, Ethereum ETF Verdict, and Crypto Legislative Proposal
As we approach the end of May, crypto traders are eagerly anticipating the arrival of a new week filled with a series of potentially impactful macro events. From Binance’s trial in Nigeria to the voting on the FIT21 bill, these events have the potential to significantly impact the crypto market.
These events hold the power to determine the next move of the market. In recent days, the crypto market has experienced significant volatility due to concerns about possible interest rate hikes. However, Bitcoin’s price saw a surge on Thursday, thanks to a weaker dollar following milder consumer inflation data for April. This boost in market sentiment pushed several crypto assets above their resistance levels. Against this backdrop, several major crypto events are scheduled for next week, which could potentially reverse the current market trend.
Binance is gearing up for a crucial week as a Nigerian court denied bail to Binance executive Tigran Gambaryan last week. In the tax evasion case, the court postponed the arraignment to May 22 after prosecutors filed an amended charge. In the separate money laundering case involving Binance and Gambaryan, the court adjourned until May 23, following a request from Gambaryan’s lawyers. The first witness, Abdulkadir Abbas from the Nigerian Securities and Exchange Commission, testified in the case and will face cross-examination from Gambaryan’s lawyers when the court reconvenes next week.
Another event of significance is the decision by the U.S. Securities and Exchange Commission (SEC) on the first spot Ether ETF application, set to be made by May 23. However, doubts have been raised about the approval of any Ether ETFs due to a recent filing. Legal experts have uncovered the filing, which suggests that the SEC may classify Ether (ETH) as a security. Such a classification could have a significant impact on the market. Experts have highlighted key reasons the agency might approve or reject the ETFs. Larry Fink, CEO of BlackRock, mentioned in a CNBC interview that the SEC could approve spot ETH ETFs even if Ethereum is classified as a security. This statement comes after recent disclosures indicating 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, expressed confidence that the SEC would approve spot ETH ETFs on May 23.
Furthermore, the House of Representatives is set to vote on the Financial Innovation & Technology for the 21st Century Act (FIT21) next week. In a letter signed by nearly 60 crypto companies on Friday, lawmakers were urged to support the bill. The Crypto Council for Innovation also signed a letter to House members on May 16, emphasizing the importance of backing the bill. The FIT21 Act includes crucial consumer protections, such as minimum capital standards, risk disclosure requirements, bankruptcy protection extensions, segregation of customer funds, and conflict of interest resolutions. The bill would designate the Commodities & Futures Trading Commission (CFTC) as the primary regulator of digital assets, with only a few issues remaining under the SEC’s oversight.
The fate of the crypto industry rests on President Biden’s decision as well. 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 a rare bipartisan agreement in the Senate, resulting in a 60-38 vote in favor of the Bill, President Biden, influenced by Senator Warren and SEC Chair Gensler, threatened last week to use his veto power if the Resolution reaches his desk. President Biden has nearly a week left to make his decision.