Coinbase: Regulatory Push Expected to Be the Main Catalyst for the Upcoming Cryptocurrency Market

Coinbase, in its “Weekly Market Commentary” released on May 17th, emphasized the significant impact of regulatory developments on the US cryptocurrency market. According to Coinbase, “The macroeconomy remains a key driver of cryptocurrency performance, although we believe upcoming major catalysts may be regulation-driven.” The upcoming regulatory events include the US Securities and Exchange Commission’s (SEC) decision on the Ethereum exchange-traded fund (ETF), potential actions by the White House regarding the SEC’s SAB121 repeal bill, and the US House of Representatives’ vote on the Financial Innovation and Technology (FIT) Act. Potential stablecoin legislation, such as the Lummis-Gillibrand Payment Stablecoin Act, may also accelerate this adoption cycle.