Crypto Market Sees Regulatory Progress Amid Headwinds and Conspiracy Theories

The crypto market remained relatively stable this week, with prices of major assets like Bitcoin, Ethereum, and XRP experiencing minimal fluctuations. This stability was largely attributed to the looming monthly crypto options expiry and macro headwinds.

Regulatory developments, however, picked up pace, with several notable announcements and proposals being made. The US Federal Reserve opened a 60-day public comment period on a proposal to end crypto debanking, while Senator Cynthia Lummis praised the move as a long-overdue correction to Fed policy.

Vitalik Buterin's massive ETH selloffs also caught attention this week, with data suggesting that he has likely completed his selling plan. This move triggered caution among traders, who became increasingly hesitant to make large investments in the market.

A conspiracy theory emerged targeting Jane Street after the Terraform Labs bankruptcy administrator filed a lawsuit against them, alleging insider trading and front-running. The lawsuit claims that these actions accelerated the UST depeg and contributed to the Terra-LUNA crisis.