Bearish clouds and rain linger over Bitcoin, Ether and Ripple’s XRP in the next 24 hours, signaling downward pressure. A bullish sun will, however, shine over Binance Coin, Dogecoin and Cardano, indicating upside potential.

Over a one-week horizon, this sun will break through and also shine over Bitcoin, Polkadot and Polygon. Bearish clouds and rain will prevail, putting additional downward pressure on Ether, XRP, Avalanche, Uniswap and Chainlink over this medium-term time horizon.

Cryptocurrencies fall as Biden & Trump announce opposite views on crypto

The cryptocurrency trend was negative over the past 24 hours, as the two US presidential candidates announced opposite views on crypto assets.

“Biden team is about to reject and veto any effort of supporting #Crypto industry from 🇺🇸 congress. But Donald Trump has expressed that he will support for Crypto in any forms,” the co-founder and co-CEO of Decibling, Oliver Wong noted.

In Asia, there are rumors circulating that current rules banning mainland Chinese from investing in the crypto exchange traded funds (ETFs) issued in Hong Kong on April 30 might be changed. China banned crypto trading in 2021.

The price of Bitcoin fell 1.9 percent to $61,500 over the past 24 hours. It has been oscillating between $57,000 and $65,000 since the beginning of the month, Trading View’s Bitcoin chart shows.

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Ether futures ETF application withdrawn

Grayscale Investments withdrew its application for a futures Ethereum ETF on Tuesday but kept its application for converting its existing Ethereum Trust into a spot ETH ETF. The SEC’s deadline for announcing its decision on Grayscale's spot ETF lapses on June 23.

“At Grayscale we decided to focus our energy on our spot products. That’s really core to our DNA,” the asset manager’s CEO, Michael Sonnenshein is quoted as saying by Markets Media.

Another deadline, the one for ruling on Van Eck’s application for a spot ETH ETF, lies closer ahead and is set for May 23.

“The #Ethereum ETF is likely not going to be approved in May. However, the markets are undervaluing a potential approval in August, as Ethereum is still getting sold off. I think the chances of an approval in August is positive,” said the founder and CEO of MN Trading, Michaël van de Poppe.

The price of Ether fell 0.4 percent to $3,002 over the past 24 hours. 

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Solana community meets up in Istanbul

Solana’s annual two-day conference will kick off tomorrow in Istanbul, with more than 3,000 participants expected. The co-founder of Solana, Anatoly Yakovenko and Michael Wagner, the CEO of Star Atlas are among the speakers at Solana Crossroads.

There is speculation that news about decentralized cloud storage will be announced by the blockchain service provider GenesysGo. The price of Solana fell 2.4 percent to $144 over the past 24 hours.

SEC insists a $2 billion fine on Ripple is adequate

The Securities and Exchange Commission (SEC) insists that its requested $2 billion fine on Ripple Labs is necessary to deter the company and other crypto asset issuers from violating current rules.

“While the SEC’s requested penalty is no doubt large, it is consistent with the above [earlier] cases... Given the nearly $1 billion Ripple gained violating Section 5, the multi-billion-dollar business it built selling XRP, the ‘low’ penalty Ripple demands [$10 million] would be a ‘slap on the wrist’ that neither punishes nor deters,” the US regulator argues in its remedies reply brief.

“To the contrary, it would encourage other crypto asset issuers to violate Section 5 by making it a remark ably lucrative endeavor, and thus deprive investors the disclosures Congress mandates, as a mere ‘cost of doing business,’” it adds.

Section 5 of the US Exchange Act requires exchanges and broker-dealers to register with the SEC. The price of XRP was unchanged at $0.522 over the past 24 hours.

“The SEC´s law of enforcement and their arbitrary actions is driving that entrepreneurial activity outside the United States. I think that definitely bodes poorly for the US crypto industry at large," Brad Garlinghouse, the CEO of Ripple, responded during an interview with HBO.

US Chamber votes down SEC’s proposed crypto custody regulation

The US House of Representatives voted down the SEC's proposed Staff Accounting Bulletin (SAB) 121 regulation that would require financial institutions and firms offering crypto custody to record their clients’ crypto holdings as liabilities on their balance sheet.

“Holding reserves against the assets held in custody is NOT standard financial services practice, “ the Republican Congressman French Hill noted. It would be a cost prohibitive move, the Financial Services Committee of the US Congress said.

President Joe Biden’s executive office underlined that “SAB 121 was issued in response to demonstrated technological, legal, and regulatory risks that have caused substantial losses to consumers… Limiting the SEC’s ability to maintain a comprehensive and effective financial regulatory framework for crypto-assets would introduce substantial financial instability and market uncertainty.” He would veto this resolution if it were tabled.

It is now up to the Senate, controlled by the Democrats, to vote on this regulation.

DISCLAIMER

ATTMO, a weather-inspired AI tool, makes cryptocurrency predictions. It also forecasts longer-term cryptocurrency trends. These forecasts are not trading advice; they are only decision support tools. They do not include information that is specific to the user; in particular they do not account for their personal risk appetite or market assessment. The forward-looking weather-inspired predictions part of this report may have changed by the time you read this edition of ATTMO Times. So always check the latest ATTMO predictions before making any investment decision.