May jobs report slowed but steady, reducing chances of near-term Fed rate cuts.
Bitcoin rose modestly, reacting to macro signals and investor sentiment.
Trump’s crypto dealings sparked fierce debate during Clarity Act hearing.
Crypto and U.S. economy collide as May jobs data tempers rate cut hopes, while Trump’s crypto ties ignite heated Clarity Act debates, exposing deep partisan rifts on regulation and oversight.
In a week where both the U.S. economy and crypto legislation shared center stage, investors and lawmakers alike grappled with mixed signals, ideological rifts and regulatory uncertainty. At the heart of the conversation: May’s job data, rising speculation around interest rates and a renewed battle over the Digital Asset Market Clarity Act.
LABOR MARKET HOLDS BUT CRACKS ARE APPEARING
The U.S. economy added 139,000 nonfarm payroll jobs in May, in line with expectations, while the unemployment rate held steady at 4.2%. Although these numbers appear stable on the surface, beneath them lies a picture of a slowing labor market. April’s job growth was revised down to 147,000 and average hourly earnings climbed 0.4% month-over-month, slightly hotter than expected, with a 3.9% annual increase.
But the broader context adds nuance. Earlier in the week, data revealed the slowest ADP jobs growth in over two years, weakening ISM services PMI figures and a surge in jobless claims to levels unseen since October. These indicators collectively point toward potential softness in economic momentum.
Despite that, the labor report tempered expectations of imminent Federal Reserve action. Ahead of the data, the market priced in strong odds of a rate cut this summer. But post-release, the 10-year Treasury yield rebounded to 4.44% and CME FedWatch showed the likelihood of a July rate cut tumbling from 30% to just 16%. September cut expectations also declined, slipping from 75% to 65%.
BITCOIN REACTS TO MACRO SHIFT
Bitcoin, already on an upswing before the jobs data, extended its gains slightly, briefly crossing $104,000 following the labor print. The muted reaction speaks to an evolving dynamic: investors are weighing macro uncertainty alongside growing optimism surrounding digital assets.
The broader crypto market has remained resilient, with Ethereum, Solana and various tokenized real-world asset (RWA) platforms drawing institutional interest. Analysts suggest that if macro conditions tighten and Fed cuts remain elusive, Bitcoin’s narrative as “digital gold” could reassert itself. But for now, the market appears to be in a wait-and-see mode, hanging on both economic indicators and legislative outcomes.
TRUMP, CRYPTO AND THE CLARITY ACT SHOWDOWN
At the Capitol, the political stage was dominated by a fiery “minority day” hearing held by the House Financial Services Committee. Spearheaded by Democrats – particularly Rep. Maxine Waters – the hearing was a follow-up to the ongoing debate over the Clarity Act, a Republican-backed bill aiming to establish a regulatory framework for digital assets.
Waters used her platform to lambast President Donald Trump’s growing entanglement with crypto, accusing him of exploiting the presidency for personal gain through various ventures, including a memecoin initiative and alleged backroom dealings involving SEC settlements.
“What I’m opposed to in this act,” Waters stated bluntly, “is the crooked president of the United States of America, who’s decided to use the office of the presidency to enhance his access to profits.”
Trump’s crypto ties have become a flashpoint in the broader conversation about ethics, transparency and regulatory clarity. Bart Naylor of Public Citizen accused Trump of “selling favors” via his crypto activities, including dinners with memecoin donors and terminating regulatory actions against contributors.
A BATTLE OVER OVERSIGHT AND IDEOLOGY
While Democrats focused on potential conflicts of interest and loopholes, Republicans hammered home the lack of any federal framework for non-security digital assets. Committee Chair French Hill argued the Clarity Act offers the necessary scaffolding to modernize crypto oversight. “There is no federal framework right now. That is the real problem,” Hill said, calling out the Biden administration’s failure to act during its tenure.
However, legal experts voiced concerns that the bill’s architecture is flawed. Carole House, formerly of the White House and now a fellow at the Atlantic Council, highlighted cybersecurity blind spots in the bill, referencing recent exchange breaches as a wake-up call. Amanda Fischer of Better Markets further warned the legislation could allow issuers to bypass the SEC in favor of the Commodity Futures Trading Commission (CFTC), potentially diluting investor protections.
The ideological chasm within the Democratic Party was also on display. While Waters led the charge against the bill, other Democrats, like Rep. Jim Himes, offered a more nuanced critique. Though supportive of crypto legislation in principle, Himes warned about loopholes that might allow financial firms to evade necessary regulation.
A MARTKET, A MOVEMENT AND A MOMENT
This week’s juxtaposition of economic and regulatory developments offers a vivid snapshot of crypto’s place in the modern economic order. On one hand, the asset class is increasingly tied to macro dynamics – jobs data, inflation and Fed policy. On the other, it remains mired in political wrangling and ideological divides.
Investors are learning to interpret Bitcoin price action not just through the lens of risk-on/risk-off cycles, but also through real-time policy developments. The Clarity Act’s fate – whether it moves forward next week or is stalled by bipartisan skepticism – will offer critical signals about the future of digital asset oversight in the U.S.
Meanwhile, the macroeconomic undercurrents are shifting. Should the economy weaken further and inflation ease, the Fed may return to the rate-cutting path – a scenario that would likely benefit crypto. But if wage growth stays firm and inflation remains sticky, policymakers may be forced to hold the line, putting pressure on both equities and speculative assets alike.
FINAL THOUGHTS
Between economic ambiguity and political tension, one thing is clear: crypto is no longer a niche concern. It now sits at the intersection of markets, monetary policy and presidential politics. As both Wall Street and Washington recalibrate their approaches, the next few months will be pivotal in shaping the regulatory architecture and investor sentiment that define crypto’s next chapter.
〈Crypto and U.S. Economy Collide: Jobs, Rates and Trump〉這篇文章最早發佈於《CoinRank》。
