THE PHENOM CRYPTO LETTER

GM,

Wow, ETH exploded up almost 30% this week due to a big shift in confidence that the ETH ETF will be approved today. Unfortunately, we don’t have confirmation if its approved or not as of writing this but with the shift in political winds for crypto this week we expect its inevitable and crypto regulation wins will start to snowball. Due to some strong lobbying and grass roots political pressure we may be seeing the political tides shift from the Dems trying to destroy crypto to embracing it out of necessity. Drowning incumbents finally reaching for the life boat if you will.

PS: If you are Premium Member make sure you check out Eric’s email night. He outlines some new trades you don’t want to miss!

If you aren’t a Premium member but are interested in getting access to Eric’s trade recommendations at Phenom Ventures check it out here

Here’s what we’ve got this week:

• Crypto becoming Bi-Partisan

• Cobie goes in depth on new launches

• Trump Embraces Crypto

• Coinbase to the MOON

MARKET RUNDOWN

Over the past week, the crypto market has seen significant positive movement, spurred by notable political and regulatory developments. Bitcoin (BTC) and Ethereum (ETH) have both experienced price increases, with BTC climbing by approximately 4% and ETH by about 28%.

Political Shifts Favoring Crypto

The most impactful news came from the political arena. Congress's decision to overturn the SEC’s Staff Accounting Bulletin 121 marked a pivotal moment, reflecting growing bipartisan support for crypto. The passing of Joint Resolution 109, coupled with the White House's unexpected silence on a previously threatened veto, signaled a shift towards a more crypto-friendly stance at the highest levels of government. This political backing has boosted investor confidence, leading to increased market activity and price appreciation.

Regulatory Developments: ETH ETF Anticipation

In addition to political tailwinds, the market has been buoyed by speculation surrounding the potential approval of an Ethereum (ETH) ETF. If approved, an ETH ETF would provide institutional investors with a regulated and accessible way to invest in Ethereum, likely driving significant inflows into the asset. This anticipation has already started to reflect in ETH's price, as investors position themselves ahead of a potential surge in demand.

Market Sentiment and Future Outlook

Overall, the combination of favorable political developments and the prospect of regulatory advancements has led to a bullish sentiment in the crypto markets this week. Investors are increasingly optimistic about the future regulatory environment, expecting it to become more supportive of crypto innovation and adoption.

Looking ahead, the market's focus will likely remain on regulatory signals and political statements. Should the anticipated ETH ETF receive approval, it could set a precedent for other crypto-related financial products, further legitimizing and stabilizing the market. Meanwhile, continued bipartisan support and clear regulatory guidelines will be crucial in sustaining this positive momentum.

Top Movers:

• (+) Ethereum ($ETH) +28% ETH spiked this week on expectations that an ETF will be approved

• (+) Pepe ($PEPE) +41% Meme beta continues to lead the market

• (-) Tron ($TRON) -7% Tron falls against the overall market direction

• (-)TONCOIN ($TON) -7% Ton continues its volatile bounces

Check Out Bay Area Times

Visual-based newsletter on business and tech

We explain the latest business, finance, and tech news with visuals and data. 📊

All in one free newsletter that takes < 5 minutes to read. 🗞

Save time and become more informed today.👇

*sponsored content

Crypto is Becoming Bi-Partisan

In a historic turn of events, Congress overturned the SEC’s Staff Accounting Bulletin 121, marking a significant milestone for crypto. SAB 121, the 121st accounting bulletin from the SEC, had aimed to set standards for crypto-related accounting practices. Interestingly, finding records of early bulletins like SAB 1 proves impossible, with the earliest available being SAB 39 from 1980. The SEC’s website remains silent on the matter, likely because these bulletins reflect only the staff’s views on niche accounting details.

Yet, crypto never goes unnoticed. This high-profile attention led to SAB 121 becoming the first Staff Accounting Bulletin ever nullified by Congress. With Joint Resolution 109 expressing “congressional disapproval” and sailing through the Senate with a 60-39 vote, it begs the question: Is crypto becoming a bipartisan issue?

Crypto’s Quiet Triumph

The White House, after threatening to veto Joint Resolution 109, has since remained silent post-passage. Their initial Statement of Administration Policy (SAP) was clear: “If the President were presented with H.J. Res. 109, he would veto it.” Yet, H.J. Res. 109 has been presented to President Biden, and no veto has been issued. Could the surge of pro-crypto sentiment on social media be influencing his re-election campaign?

Democrats in the House seem to have felt the shift, with HR 6572 passing by a substantial 334-79 margin, aimed at making the US more welcoming to crypto businesses.

Even more encouraging news surfaced this morning. The Biden administration issued another SAP opposing House Resolution 4763, a crypto-friendly bill, but only “in its current form” and notably without a veto threat. This change in tone marks a departure from the strong “anti-crypto army” stance we’ve seen previously.

James Seyffart, an ETF expert, believes this abrupt shift likely stems from a top-level political decision, driven by growing grassroots pro-crypto pressure. SAB 121’s unprecedented attention and subsequent Congressional rebuke highlight this influence. If President Biden avoids the veto, it underscores the increasing power of the pro-crypto movement.

Former President Trump’s recent emphasis on crypto as an election issue, notably with his NFT collection at Mar-a-Lago, has likely played a role. Since then, the Democratic party's stance has swiftly moved from anti-crypto to neutral, and possibly even pro, as evidenced by recent voting outcomes.

Crypto advocates might feel a bit like Ferris Bueller this week, seeing their efforts potentially shape more than just accounting history.

READING CORNER

Overwhelmed by all the newsletters you could be reading? Don’t worry, We’ve got you. We’ve narrowed down a few we think are worth checking out. 

BLOCKBUZZ

Quick Hitters from the week

1. Massive GALA Token Heist: Hacker exploits an admin address to mint 5 billion GALA tokens, converting 592 million tokens into $21.8 million in ETH before being blocked by Gala Games.

2. Dangerous Stunt Burns Solana Developer: A Solana meme coin developer suffers third-degree burns during a livestream attempt to promote his token using fireworks and alcohol.

3. Farcaster Secures $150M for Blockchain Social Network: Blockchain-based social media startup Farcaster raises $150 million in a funding round led by Paradigm.

4. Hong Kong Cracks Down on Worldcoin: Orders the cessation of Worldcoin’s operations over concerns of excessive iris data collection.

5. Donald Trump Embraces Bitcoin Donations: After facing pressure from NFT holders, the former president begins accepting Bitcoin for campaign contributions.

6. Coinbase Expands into Commodity Futures: Announces plans to offer gold and oil futures trading to attract new traders.

THE TWITTERVERSE

A collection of the most interesting stuff on Crypto Twitter this week

WAGMI

For the (crypto) Culture

📣 Want FREE access to Phenom Premium? 📣

Share Phenom Crypto Letter with your friends using the link below. For every 10 subscribers you refer you will get a free month of Phenom Premium!

Click the link below to refer