As May begins, the US crypto market is being shaped by a familiar mix of regulation, ETF flows and macroeconomic uncertainty, but the sharpest attention is on Washington. Venture capitalist Tim Draper has proposed a third crypto-focused framework that would let American businesses carry out payments, tax work, bookkeeping and auditing directly on the Bitcoin network, according to coverage from BBX. The idea reflects a broader push among industry supporters to move Bitcoin beyond a reserve asset and into day-to-day commercial use.

At the same time, Jerome Powell’s departure as Federal Reserve chair is no longer the main question; his next role is. Powell has said he will remain on the Fed’s Board of Governors after his chairmanship ends on May 15, a move reported by KPBS, the Washington Post and other outlets. That decision comes after the Fed again held interest rates steady in April, despite renewed inflation pressure and White House criticism. In crypto circles, the transition has prompted divided reactions: some traders see the end of Powell’s term as a possible policy shift, while analysts such as Benjamin Cowen have warned that leadership changes can produce unintended consequences.

Markets are also sending mixed signals through fund flows. Data cited by The Crypto Basic showed that US spot Bitcoin ETFs recorded $14.76 million in net inflows on April 30, ending a three-session run of outflows. Ethereum products, however, continued to weaken, posting $23.64 million in net redemptions and extending a four-day losing streak. The divergence suggests investors remain more comfortable with Bitcoin exposure than with Ether-linked vehicles, even as both assets continue to trade below levels that would signal a stronger breakout.

Elsewhere in the sector, Ripple leadership used a public appearance in Las Vegas to push back against suggestions that the company has lost interest in XRP. Brad Garlinghouse said Ripple remains deeply tied to the token’s long-term fortunes, while Ripple chief technology officer emeritus David Schwartz argued in an online exchange that the company no longer appears to have a simple catalyst capable of driving XRP sharply higher. The comments come as XRP remains well below the kind of levels touted by some retail supporters, even with Ripple still holding a large treasury of the asset.

Beyond price action, security remains a growing concern. April was the worst month on record for crypto hacks, according to DeFiLlama and CertiK, with estimated losses reaching $651 million. Investigators have linked much of the damage to North Korean-aligned groups, while the month also saw major incidents at KelpDAO, Drift Protocol, Rhea Finance and Grinex. Bitmine’s decision to stake more than $508 million worth of Ether stands in stark contrast to that backdrop, underlining how aggressively some firms are still positioning for long-term exposure even as the wider market faces regulatory, political and security headwinds.

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Source: Noah Wire Services