Coinbase CEO Strongly Opposes Senate’s Crypto Bill Draft

Strong opposition from Coinbase CEO suggests potential regulatory uncertainty, which can increase market volatility. Higher volatility could lead to wider spreads and increased funding rate fluctuations. Delta-neutral traders should be prepared for larger swings in funding rates, creating both opportunities and risks for arbitrage strategies.

Coinbase's stance against the bill highlights a potential regulatory battle. This news could trigger increased short-term speculation and volatility in Bitcoin and Ethereum, the most liquid cryptocurrencies. Traders should monitor funding rates closely, looking for opportunities to profit from deviations caused by increased market uncertainty. Consider employing strategies that benefit from increased volatility, such as straddles or strangles, while carefully managing risk.