House Democrats slam SEC for dropping crypto cases with Trump ties

This news could introduce short-term volatility and uncertainty, potentially widening funding rate spreads on platforms like Binance and Deribit. Delta-neutral traders should monitor funding rate differentials between exchanges closely, as regulatory concerns might lead to increased or decreased trading activity on specific platforms, affecting arbitrage strategies. Expect increased volatility in the mentioned coins.

The House Democrats' accusations of a "pay-to-play" dynamic raise significant regulatory uncertainty. If the market believes the SEC is becoming more lenient, it might spur speculative buying, increasing funding rates on perpetual futures. Traders should consider strategies that benefit from increased volatility, such as straddles or strangles, while remaining cautious about directional biases. Monitor SEC communications closely for further hints of their regulatory stance.