beincrypto.com
This week is key for the crypto market, as several pieces of news will show the industry players’ direction.
From inflation data to legislation would affect the crypto industry, and even updates on spot Ethereum ETFs and the US Securities and Exchange Commission (SEC) lawsuit against Ripple.
Wednesday’s US Consumer Price Index
This week, the market will witness the release of the US Consumer Price Index data, which could be busy defining the direction of the crypto market. Analysts expect the underlying CPI to rise 0.3%, up from 0.4% in March.
“Investors need to have some level of reassurance that inflation is not going to go back up, and potentially down, to give the Fed cover for at least one or maybe two cuts before the end of the year,” Thomas Hayes, president of Great Hill Capital LLC, said.
The SEC’s Position on Spot Ethereum ETFs
Forecasts that rule out the SEC’s upcoming approval of spot Ethereum ETFs are growing. The regulator recently delayed the review of Galaxy Invesco’s proposed Ethereum ETF for 60 days until July 5. Meanwhile, ARK Invest and 21Shares removed staking from their SEC filing due to a regulatory crackdown on crypto staking.
Analysts already predict Ethereum will fall to $2,500 if the ETF is denied. However, if approved, ETH could surpass $4,000.
In the coming weeks, the SEC will file a decision on several Ethereum ETF proposals. These include BlackRock, Grayscale, Ark Invest and 21Shares, Fidelity, VanEck, Hashdex, Franklin Templeton, Invesco Galaxy Digital, and Bitwise.
Crypto Regulations in the US Congress
House Financial Services Committee Chairman Patrick McHenry said the US Congress could vote on the “Financial Innovation and Technology Act of the 21st Century” (FIT21) before the end of May. FIT21 would impose jurisdiction over cryptocurrencies in investment contracts.
Representatives believe the legislation would cement US leadership in the international financial system for decades.
“With the floor vote announced today, Congress will take a historic step toward providing a clear regulatory framework for digital asset markets,” McHenry said.
SEC vs. Ripple Update Expected
Finally, one of the most emblematic legal cases in the crypto market, SEC v Ripple, is expected to make news headlines. The latest development around this is that both parties involved filed omnibus letter motions to seal proceedings.
These pieces of evidence represent one of the last steps before judges rule on the case. The goal is to conclude whether Ripple must pay a hefty fine for its XRP sales.