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  "description": "The regulatory picture is quietly improving for crypto, and that is where most of the market is now looking for its next catalyst.",
  "path": "/research/2026/06/all-eyes-on-regulation/",
  "publishedAt": "2026-06-10T14:47:58.000Z",
  "site": "https://www.bytetree.com",
  "tags": [
    "ByteTrend.io",
    "yesterday’s update",
    "proposed",
    "opened",
    "approved",
    "reviewing",
    "seeking CFTC approval",
    "cleared",
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  "textContent": "## ByteFolio Issue 213;\n\nBitcoin is now trading around $61k, which, after stellar price performance last year, was not something we had on the cards for 2026, but here we are. A number of factors have driven this bear market, including the war in the Middle East, the AI boom and the (perceived) quantum risk.\n\n## Sign up for our research\n\nByteTree is a leading provider of high-quality investment research in traditional finance and crypto. Our experienced market professionals construct easy-to-follow, risk-managed model portfolios.\n\nSign Up\n\nEmail sent! Check your inbox to complete your signup.\n\nNo spam. Unsubscribe anytime.\n\nAdditionally, BTC is back to a bearish 0-star score on ByteTrend in USD, solidifying the extent of this downtrend. Notably, £60k is a crucial support zone, with the price historically finding a floor around this range several times.\n\n### BTC in USD\n\nSource: ByteTrend.io\n\nHowever, it is not just Bitcoin, as weakness remains throughout the crypto market. This can clearly be visualised in our breadth chart, which measures bearish, neutral, and bullish trends for the top 100 tokens on ByteTrend, shown here in USD. Notably, red, which represents 0-star bearish price trends, is at its highest level since November 2022, pointing to a struggling market.\n\n### Crypto Breadth in USD\n\nSource: ByteTrend.io\n\nFurthermore, the market weakness is notable outside the digital realm as equities also retraced sharply this week. Charlie covered the factors behind this in much more detail in yesterday’s update of The Multi-Asset Investor, with the common denominator being the recent strength in the US dollar.\n\nSo, in summary, the market backdrop is undeniably weak. Price trends are rolling over across crypto and equities alike, and sentiment has soured. Yet beneath the surface, the regulatory picture is quietly improving for crypto, and that is where most of the market is now looking for its next catalyst.\n\nFirstly, the UK's financial regulator, the Financial Conduct Authority (FCA), has proposed allowing certain retail investment funds to hold up to 10% exposure in crypto exchange-traded notes (ETNs). This matters because it lets ordinary investors gain crypto exposure through a familiar, regulated wrapper, without having to hold the assets themselves. There is no need to manage private keys or worry about custody and self-storage risk, nor to navigate the operational complexities of buying and holding crypto directly. The exposure simply sits inside a fund structure that traditional investors are already familiar with. The proposal marks another step on the road to wider acceptance of crypto exchange-traded products (ETPs) in the UK under the ETN banner. The regulator first opened the door to retail access in October 2025, lifting a ban that had been in place since 2021.\n\nIn the US, regulators are warming to products that the industry has long run at the edges of the system. On 29 May, the CFTC approved KalshiEX's BTCPERP, making it the first true Bitcoin perpetual listed on a major US-regulated exchange, although the significance runs deeper than a single listing. Perpetuals have been the flagship product of crypto's offshore and decentralised venues for years; the very instruments US regulators were once wary of. The CFTC is now signalling that perpetuals belong within the US framework, and laying out a path for other venues to follow, thereby validating an entire category and pulling it onshore. That is a meaningful shift in tone from a regulator who kept themselves at an arm’s length not too long ago.\n\nFurthermore, the momentum extends to prediction markets too. The White House's Office of Information and Regulatory Affairs began reviewing a proposed CFTC rule on prediction markets in late May. This is a key procedural step toward a federal framework for event contracts covering elections, sports, and economic data. This follows Polymarket seeking CFTC approval to reopen its main exchange to US traders, having already secured a designation for a separate US-regulated platform late last year. President Trump has publicly endorsed the CFTC's exclusive authority over the sector, pushing back against states that argue these contracts amount to unlicensed gambling. The direction of travel is clear: bring the activity onshore and under a single federal regulator.\n\nThe biggest prize, though, is market structure legislation. The Digital Asset Market Clarity Act cleared the Senate Banking Committee on 14 May, moving it to the Senate floor. The bill would establish a tailored regulatory regime for crypto in the US, much as the GENIUS Act did for stablecoins last year. It still faces real obstacles, including an unresolved ethics provision and a very tight Senate calendar before the summer break and midterm season, but its chances of passage are higher than they have been at any point so far. Many in the industry, including us, are hopeful it can be signed into law by the end of the year.\n\nIf it passes, Ethereum and DeFi more broadly stand to gain the most. The bill includes a dedicated DeFi section that sets out how trading protocols and the people behind them could register and operate within clear rules, alongside developer protections that address the long-standing fear of building in legal limbo. It also brings clarity to activities such as staking, which has hung over Ethereum since the shift to proof of stake. Replacing years of regulation-by-enforcement with a defined framework removes the single biggest overhang on the sector, and it is exactly the kind of certainty institutions have said they need before committing capital on-chain. Ultimately, positive regulatory outcomes are generally deemed as the next likely bullish catalyst.\n\n### This post is for subscribers only\n\nBecome a member to get access to all content\n\nSubscribe now",
  "title": "All Eyes on Regulation",
  "updatedAt": "2026-06-10T14:47:58.603Z"
}