The ISM Manufacturing PMI fell from 49.2 to 48.7 in May, fueling bets on a September Fed rate cut. According to the CME FedWatch Tool, the chances of the Fed leaving interest rates unchanged fell from 45.2 (May 31) to 38.4% (June 3).
Hopes of Republican Party victory also contributed to the positive session, with crypto firms making contributions to support pro-crypto US lawmakers on Capitol Hill.
On Monday, Coinbase (COIN) donated $25 million to Fairshake, following contributions from Ripple and Andreessen Horowitz. Coinbase announced the donation in a company blog. According to the website, Fairshake PAC supports US candidates committed to securing the US as the home to innovators building the next generation of the internet.
The Coinbase blog discussed US politics and the races in the House, the Senate, and the Presidential Election. Notably, Coinbase highlighted the significance of the US Presidential Election, saying,
“The presidential race matters as well, because the President makes key appointments in his Administration (such as the SEC Chair, Treasury Secretary, etc) and can veto legislation.”
Last week, US President Joe Biden vetoed the SAB 121 resolution, causing a stir on Capitol Hill and within the crypto community. A crypto-friendly US administration could significantly alter the US crypto landscape with a regulatory framework protecting consumers while fostering innovation. A new SEC Chair could also pave the way to an XRP-spot ETF market.
