The U.S. Department of the Treasury is scheduled to hold a series of private roundtables with key players in the crypto industry. This is not just casual talk; these discussions are intended to delve into critical issues that will change the future of cryptocurrencies in the U.S.
The planned meetings will focus on topics such as stablecoins, DeFi, banking relationships, and cybersecurity.
First, there is a session on stablecoins scheduled for May 15 to discuss how to prevent sanctions evasion, secondary market monitoring, freezing capabilities, and compliance risks.
Meanwhile, Democrats - the biggest critics of cryptocurrencies - are confused. Representative Maxine Waters spoke out against crypto policy, and some Democrats from the Financial Services Committee walked out and joined Waters for a separate 'shadow hearing' on 'Trump's crypto corruption.'
Other party members remained in the room to participate in the meeting. Unlike GOP leadership, which has fully supported Trump on cryptocurrency regulation, Democrats have different ideas on how to regulate cryptocurrencies.
Major U.S. event of the week expected to influence stock and crypto markets
The Consumer Price Index (CPI) figures for April will be released on Tuesday. As the main event of this week, investors will keep a close eye on the reported CPI and core CPI to see if they indicate that inflation is decreasing.
If the CPI number is lower than expected, it could rekindle hopes for rate cuts as soon as September. This is especially true due to recent signs of slowing growth and labor market indicators. If things rise, it could support a Fed policy of keeping rates high for longer.
This information is likely to have a direct effect on U.S. Treasury bond yields, the value of the dollar, and investors' willingness to take risks with stocks. A decrease in inflation would support a more accommodative environment for crypto markets, which could lead to more money flowing into the crypto industry.
SEC roundtable on tokenization
Additionally, today, the U.S. Securities and Exchange Commission (SEC) will hold a private roundtable on asset tokenization. This is an important area for regulators and KOLs to address due to traditional finance (TradFi) blockchain-based settlement systems and tokenized securities.
Although it was not open to the public, any leaks or comments made after the meeting could have a significant effect on how investors respond, especially regarding how clear the rules are for Real World Assets (RWAs) and DeFi protocols.
Crypto users will be looking for signs that the SEC is changing its mind or preparing to release new rules. This could change how people feel about both systems focused on tokenization and U.S.-based crypto assets.