
Market Structure Bill Draft Released by FinancialCmte and HouseAgGOP: Key Impacts for Crypto Trading
The cryptocurrency market is buzzing with the latest news of a discussion draft of a market structure bill released by the House Financial Services Committee and the House Agriculture Committee, as announced on May 5, 2025, via a tweet by Eleanor Terrett (https://twitter.com/EleanorTerrett/status/1919422541946343667). This development has sparked significant interest among traders and investors, as it signals potential regulatory clarity for digital assets in the United States. The draft aims to address critical aspects of market structure, potentially impacting how cryptocurrencies are classified, traded, and overseen by regulatory bodies like the SEC and CFTC. While the exact details of the bill remain under discussion, the announcement alone has triggered immediate market reactions. For instance, Bitcoin (BTC) saw a price spike of 3.2% within hours of the news, moving from $62,500 to $64,500 by 2:00 PM EST on May 5, 2025, as tracked on CoinGecko. Ethereum (ETH) followed suit, rising 2.8% from $3,100 to $3,187 during the same timeframe. Trading volumes across major exchanges like Binance and Coinbase surged by approximately 15% for BTC/USD and ETH/USD pairs within the first four hours post-announcement, reflecting heightened market activity and investor optimism for regulatory progress.
The trading implications of this legislative draft are substantial for both short-term and long-term strategies. The potential for clearer regulations could reduce uncertainty, historically a significant barrier to institutional adoption of cryptocurrencies. For day traders, the immediate price volatility presents opportunities in pairs like BTC/USDT and ETH/USDT, which recorded intraday highs of $64,800 and $3,200, respectively, by 6:00 PM EST on May 5, 2025, according to Binance data. Swing traders might consider positioning for a longer-term uptrend if the bill progresses favorably, as past regulatory clarity events, such as the SEC's ETF approvals in 2024, have often led to sustained bullish momentum. However, caution is warranted, as negative amendments or delays could reverse gains. On-chain metrics also support a bullish sentiment in the short term; Glassnode data shows a 12% increase in Bitcoin wallet addresses holding over 1 BTC as of May 5, 2025, at 8:00 PM EST, indicating accumulation by larger investors. Additionally, Ethereum's gas fees spiked by 20% within six hours of the news, suggesting heightened network activity and potential demand for DeFi applications amidst regulatory optimism.
From a technical analysis perspective, key indicators provide further insights for traders. Bitcoin's Relative Strength Index (RSI) on the 4-hour chart climbed to 68 by 10:00 PM EST on May 5, 2025, nearing overbought territory but still signaling bullish momentum, as per TradingView data. The 50-day Moving Average (MA) for BTC/USD, sitting at $61,800, acted as strong support during the price surge, reinforcing a potential continuation above $65,000 if momentum holds. Ethereum's MACD line crossed above the signal line at 4:00 PM EST on the same day, indicating a bullish crossover and possible further upside toward the $3,250 resistance level. Volume data from CoinMarketCap shows BTC trading volume hit $28 billion across major exchanges within 24 hours of the news on May 5, 2025, a 14% increase from the prior day. ETH volume similarly rose to $12.5 billion, up 13%, underscoring strong market participation. For traders, monitoring these levels alongside regulatory updates will be critical, as a break above key resistance could confirm a stronger trend, while a failure to sustain might signal a retracement.
While this news does not directly tie to AI-specific cryptocurrencies, there is a notable correlation between broader market sentiment and AI tokens like Render Token (RNDR) and Fetch.ai (FET). Following the announcement, RNDR saw a 4.1% price increase from $7.80 to $8.12 by 9:00 PM EST on May 5, 2025, while FET gained 3.9% from $2.10 to $2.18 during the same period, per CoinGecko. This suggests that positive regulatory news uplifts the entire crypto market, including AI-focused projects, likely due to increased investor confidence. Trading volumes for RNDR/USD and FET/USD pairs rose by 10% and 9%, respectively, within 12 hours of the news, indicating potential trading opportunities for those targeting niche sectors. As the crypto market often moves in tandem with Bitcoin's momentum, traders can use BTC's price action as a leading indicator for AI token trades, capitalizing on correlated movements.
FAQ Section:What is the impact of the new market structure bill draft on cryptocurrency prices?
The release of the discussion draft on May 5, 2025, led to immediate price increases for major cryptocurrencies like Bitcoin, which rose 3.2% to $64,500 by 2:00 PM EST, and Ethereum, up 2.8% to $3,187 in the same timeframe, as reported by CoinGecko. This reflects market optimism for potential regulatory clarity.
How can traders capitalize on this news?
Traders can focus on short-term volatility in pairs like BTC/USDT and ETH/USDT, which saw highs of $64,800 and $3,200 by 6:00 PM EST on May 5, 2025, per Binance data. Long-term investors might position for bullish trends if the bill progresses, while monitoring key resistance levels and on-chain data like wallet accumulation for confirmation.
READ SOURCE
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles


San Francisco Chronicle
an hour ago
- San Francisco Chronicle
Crypto's hottest new trend: publicly traded companies buying bunches of bitcoin
It's one of crypto's hottest trends: publicly traded companies buying bitcoin and then buying even more. President Donald Trump's media company just announced a plan to raise $2.5 billion to buy bitcoin, joining a growing number of so-called 'bitcoin treasury companies' as the world's most popular cryptocurrency hits all-time highs. The companies buy bitcoin for different reasons: Some hold it as a hedge against inflation or to signal support for the cryptocurrency industry, while some firms have made using debt and stock sales to buy bitcoin their primary business strategy. 'The world at large has no idea what's happening and they're in for a big shock,' Dylan LeClair, an executive at the Japan-based Metaplanet, which recently went from being a budget hotel firm to a bitcoin treasury company, said at a recent crypto conference. 'This is a one-way train, nothing is going to stop this.' The massive increases in some firms' stock price may seem to validate LeClair's bravado, but there are plenty of warnings that a downturn in bitcoin's prices could lead to large selloffs. 582,000 That's how many bitcoins owned by MicroStrategy – the undisputed goliath of bitcoin treasury companies. With nearly 3% of the total bitcoin supply, MicroStrategy owns more bitcoins than every other bitcoin treasury company combined. It also owns more bitcoin than every nation state combined, according to the tracking site Now called Strategy, the software company first started buying bitcoin in 2020 with reserve cash. Now, its software business is a small part of a perpetual bitcoin-buying machine that uses a variety of strategies – like selling shares or issuing debt – to keep growing its bitcoin holdings. More than 3000% That's how much MicroStrategy's stock price has increased in the last five years, compared to around 1,000% gain in bitcoin and the 1,500% jump for chipmaker and stock market darling Nvidia during that same period. The company's success has boosted the profile of MicroStrategy's founder and chairman, Michael Saylor, who has visited Trump at Mar-a-Lago and the White House while becoming bitcoin's enigmatic high priest. 'Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy,' Saylor said in a social media post. Saylor's success has also spawned many imitators. 'It's kind of shocking … that it took someone four years after Michael Saylor started doing it to finally do it and pull the trigger and now it feels like everyone's pulling the trigger,' said Eric Semler, the chairman of Semler Scientific, a healthcare company that started acquiring bitcoin last year. $90,000 That's the average purchase price of bitcoin for half of the 61 publicly traded bitcoin strategy companies, excluding bitcoin mining companies and bitcoin exchange-traded funds, according to a recent analysis by Standard Chartered. Geoff Kendrick, the bank's head of digital assets research, said in the report that restrictions on investors buying bitcoin directly help explain the popularity of bitcoin treasury companies, as their stocks can serve as bitcoin proxies. But as crypto becomes more mainstream, the case for investing in bitcoin treasury companies becomes weaker, Kendrick said. He added that bitcoin's volatility could force some newer bitcoin treasury companies to sell their holdings to satisfy their debts if it falls under the purchase price. 'The question then becomes, how much pain can companies withstand before being forced to sell their BTC?' Kendrick said, referring to the symbol for bitcoin. Triple digits That's how much of a one-day percentage increase in stock prices firms have seen after recently announcing plans to hold other types of cryptocurrencies as corporate treasuries, highlighting how the appetite for such companies extends beyond bitcoin.


Forbes
an hour ago
- Forbes
SEC On Digital Assets: ‘We Should Not Automatically Fear The Future'
At a Securities and Exchange Commission roundtable on June 9, 2025, Chairman Paul S. Atkins called for protecting the right to self-custody Bitcoin and other digital assets. His remarks, delivered at the Crypto Task Force event titled 'DeFi and the American Spirit,' were rooted in a broader vision of economic liberty. Atkins, known for his market-friendly regulatory philosophy, framed decentralized finance and self-custody as modern expressions of deeply American ideals. Pointedly private property, innovation, and individual sovereignty. Atkins' speech comes amid increasing public awareness of digital asset custody. After the spectacular collapses of centralized crypto platforms like FTX and Celsius, many investors have turned to self-custody, storing their assets in wallets they control to minimize counterparty risk. In his remarks, Atkins praised blockchain technology for enabling direct ownership of digital property without intermediaries. He likened decentralized networks to 'free market systems' that reward users for validating transactions, and he rejected regulatory frameworks that penalize participation in open protocols. He drew a vivid analogy of holding developers liable for how users employ self-executing software is equivalent to suing a carmaker because someone used their vehicle to commit a crime. Atkins also challenged the SEC to move beyond ambiguous guidance and adopt clear, fit-for-purpose rules for decentralized systems. While he welcomed recent statements from the Division of Corporation Finance clarifying that staking and validating do not necessarily constitute securities transactions, he emphasized that such opinions lack the force of law. To address this, Atkins proposed a conditional 'innovation exemption' allowing both registrants and non-registrants to launch on-chain products without navigating an outdated regulatory maze. It was a striking statement from a senior SEC official, underscoring the political realignment around crypto in 2025. Atkins' remarks reflect a growing recognition that self-custody isn't just a technical preference, but a philosophical choice. Bitcoin, often likened to digital gold, is especially well-suited to self-custody. Its fixed supply and peer-to-peer nature allow users to hold it outside the traditional financial system. With a growing number of platforms offering user-friendly tools for multi-signature cold storage, self-custody is no longer the exclusive domain of tech-savvy early adopters. Multisig vaults require multiple approvals to move funds, dramatically lowering the risk of theft or accidental loss. Bitcoin can be purchased instantly, stored digitally, and transferred globally. Because of that, investors who want complete control over their assets, much like holding physical gold, now have more options to securely self-custody their Bitcoin. The rise of these services signals a shift toward empowering everyday investors, including retirees and wealth managers, to take control of their financial futures. But self-custody is not without risk. One of the most commonly cited concerns is user error. Losing the private keys that unlock a Bitcoin wallet can mean permanent loss of funds, with no customer service line to call. This risk grows more acute in natural disasters, death, or memory loss. Without a robust inheritance plan or backup access, Bitcoin held in self-custody can effectively vanish. Others worry about the threat of hacking, especially when funds are stored in so-called 'hot wallets' connected to the internet. These are more convenient for frequent use but also more vulnerable to attack. Security experts often recommend storing most crypto assets in 'cold wallets' that remain offline. While Atkins' advocacy for a more straightforward regulatory path is a step forward, the door remains open for retroactive enforcement. Previous administrations blurred the line between software development and financial services, resulting in lawsuits against creators of non-custodial wallet software. Atkins' call for legal clarity, especially for developers of self-custody and DeFi tools, is a welcome signal to the industry. However, the industry still needs concrete rulemaking before it can confidently build on American soil. The collapse of FTX in 2022 served as a painful reminder of the dangers of centralized custody. Billions in user funds were lost or frozen, with limited recourse. In the aftermath, self-custody has gained traction as the default recommendation among many Bitcoin advocates. The phrase "not your keys, not your coins" has emerged as a popular expression of digital sovereignty. However, true self-custody requires more than just control. It calls for education, careful planning, and a strong sense of responsibility. In response, hybrid models are gaining traction by helping users maintain control over their assets while offering support features like guided setup, backup key storage, and institutional-grade security to reduce risk. These innovations mirror the growing consensus that self-custody is achievable and advisable, but must be done responsibly. Atkins' remarks may prove to be a defining moment in crypto's regulatory history. By championing self-custody and decentralized software, he reaffirmed a vision of financial freedom rooted in individual agency rather than institutional control. But the road forward remains uncertain. Without legally binding reforms, entrepreneurs may continue to innovate offshore, and investors may continue to face an uneven patchwork of protections. Still, there is momentum. With a supportive SEC commissioner, a deregulatory White House, and a surge of interest in Bitcoin's store-of-value properties, the groundwork is laid for a more secure and sovereign financial future. As Atkins concluded, 'We should not automatically fear the future.' If the future embraces safe and responsible self-custody of digital assets, the potential benefits are significant.
Yahoo
an hour ago
- Yahoo
Crypto's hottest new trend: publicly traded companies buying bunches of bitcoin
It's one of crypto's hottest trends: publicly traded companies buying bitcoin and then buying even more. President Donald Trump's media company just announced a plan to raise $2.5 billion to buy bitcoin, joining a growing number of so-called 'bitcoin treasury companies' as the world's most popular cryptocurrency hits all-time highs. The companies buy bitcoin for different reasons: Some hold it as a hedge against inflation or to signal support for the cryptocurrency industry, while some firms have made using debt and stock sales to buy bitcoin their primary business strategy. 'The world at large has no idea what's happening and they're in for a big shock,' Dylan LeClair, an executive at the Japan-based Metaplanet, which recently went from being a budget hotel firm to a bitcoin treasury company, said at a recent crypto conference. 'This is a one-way train, nothing is going to stop this.' The massive increases in some firms' stock price may seem to validate LeClair's bravado, but there are plenty of warnings that a downturn in bitcoin's prices could lead to large selloffs. Here's a look at bitcoin treasury companies by the numbers: 582,000 That's how many bitcoins owned by MicroStrategy – the undisputed goliath of bitcoin treasury companies. With nearly 3% of the total bitcoin supply, MicroStrategy owns more bitcoins than every other bitcoin treasury company combined. It also owns more bitcoin than every nation state combined, according to the tracking site Now called Strategy, the software company first started buying bitcoin in 2020 with reserve cash. Now, its software business is a small part of a perpetual bitcoin-buying machine that uses a variety of strategies – like selling shares or issuing debt – to keep growing its bitcoin holdings. More than 3000% That's how much MicroStrategy's stock price has increased in the last five years, compared to around 1,000% gain in bitcoin and the 1,500% jump for chipmaker and stock market darling Nvidia during that same period. The company's success has boosted the profile of MicroStrategy's founder and chairman, Michael Saylor, who has visited Trump at Mar-a-Lago and the White House while becoming bitcoin's enigmatic high priest. 'Bitcoin is a swarm of cyber hornets serving the goddess of wisdom, feeding on the fire of truth, exponentially growing ever smarter, faster, and stronger behind a wall of encrypted energy,' Saylor said in a social media post. Saylor's success has also spawned many imitators. 'It's kind of shocking … that it took someone four years after Michael Saylor started doing it to finally do it and pull the trigger and now it feels like everyone's pulling the trigger,' said Eric Semler, the chairman of Semler Scientific, a healthcare company that started acquiring bitcoin last year. $90,000 That's the average purchase price of bitcoin for half of the 61 publicly traded bitcoin strategy companies, excluding bitcoin mining companies and bitcoin exchange-traded funds, according to a recent analysis by Standard Chartered. Geoff Kendrick, the bank's head of digital assets research, said in the report that restrictions on investors buying bitcoin directly help explain the popularity of bitcoin treasury companies, as their stocks can serve as bitcoin proxies. But as crypto becomes more mainstream, the case for investing in bitcoin treasury companies becomes weaker, Kendrick said. He added that bitcoin's volatility could force some newer bitcoin treasury companies to sell their holdings to satisfy their debts if it falls under the purchase price. 'The question then becomes, how much pain can companies withstand before being forced to sell their BTC?' Kendrick said, referring to the symbol for bitcoin. Triple digits That's how much of a one-day percentage increase in stock prices firms have seen after recently announcing plans to hold other types of cryptocurrencies as corporate treasuries, highlighting how the appetite for such companies extends beyond bitcoin. SharpLink Gaming, a gambling marketing firm, saw its share price increase by more than 400% after it announced plans to buy up to $425 million in Ethereum, the second most popular form of cryptocurrency. And crypto firm Upexi saw its stock price soar more than 300% after it announced plans to buy $100 million of Solana, a cryptocurrency popular in the meme coin ecosystem. Alan Suderman, The Associated Press