Ethereum News Today: Crypto's Political Gamble: Trump's Pardon and $263M Lobbying Spark Regulatory Uncertainty

In a 24-hour span ending October 29, 2025, global crypto markets recorded $522 million in liquidations, with Ethereum (ETH) leading the charge after a $6.09 million single-position unwind on Hyperliquid, according to a Coinotag report. This volatility came as Ethereum ETFs outperformed Bitcoin for the first time, drawing $246 million in inflows compared to Bitcoin's $202.48 million, according to a Coinpedia report. The data underscores a shifting landscape in institutional crypto adoption, where Ethereum's smart contract-driven use cases are gaining traction alongside Bitcoin's traditional safe-haven appeal.

The surge in ETF activity follows a broader trend of political and regulatory developments shaping the sector. Crypto industry groups have amassed a $263 million war chest for the 2026 U.S. midterm elections, nearly double their 2024 spending and surpassing oil and gas lobbying efforts, according to a CryptoNews report. Key players like Fairshake, backed by Coinbase and Ripple, are targeting pro-crypto legislation and congressional races. This escalation coincides with President Donald Trump's controversial pardon of Binance founder Changpeng Zhao, which has been cited as a bullish catalyst for crypto prices. Bitcoin, Ethereum, and XRP have all seen gains in the week following the pardon, according to Yahoo Finance.

Meanwhile, the Trump Organization's crypto-related income has surged 17-fold to $864 million in 2025, primarily from token sales of World Liberty Financial and TRUMP meme coins, a Yahoo Finance report. The family's international roadshow, including meetings with Chinese businessman Guren "Bobby" Zhou, has drawn scrutiny amid Zhou's money laundering investigations in the UK. This financial alignment with crypto policy has raised ethical concerns, as the Trump administration rolled back enforcement actions against the industry.

Regulatory uncertainty persists, however, as bipartisan efforts to pass the CLARITY Act face a February 2026 deadline, a Yahoo Finance report. While lawmakers have held closed-door meetings with industry leaders, prediction markets assign only a 20% chance of the bill passing by year-end. The lack of clarity contrasts with the Federal Reserve's upcoming rate decisions and inflation data releases, which could further sway crypto markets.

Amid these developments, liquidations highlight the risks of leveraged trading. Ethereum's dominance in liquidations—driven by its $4,010 price dip—reflects ongoing challenges in managing volatility, as Coinotag reported. Yet, projects like Blazpay are capitalizing on the momentum. The audited presale has raised $925.7K in its second phase, according to a GlobeNewswire release, with a third-party audit boosting investor confidence ahead of a price jump to $0.009375.

As the sector navigates regulatory, political, and market forces, the interplay between institutional inflows and speculative trading will likely define 2026's trajectory.