Crypto markets got a jolt on Monday on news that the Securities and Exchange Commission has gone back to would-be issuers of Ethereum ETFs, asking them to update their filings. The move was widely interpreted as a signal the agency had suddenly gotten cold feet about its widely anticipated plan to reject the ETFs. In response, Ethereum rose from around $3,100 to over $3,700 by midnight, a gain of nearly 20% that also gave a boost to crypto prices across the board.

The reports of the request for new filings came three days before the SEC faces a final deadline to approve or reject an Ethereum ETF application from VanEck, one of the 11 companies that launched a first-of-its-kind ETF for Bitcoin in January. Those Bitcoin ETFs brought about a speculative frenzy that pushed the currency to an all-time high and, by all appearances, it looks like the markets are betting the good times will start up all over again, this time with Ethereum as the band leader.

To be clear, that SEC approval is far from a sure thing and, in any case, this week's VanEck decision only concerns a request to change agency rules to allow an Ethereum ETF—even if the application is approved, VanEck and others will have to wait for weeks or months for the SEC to sign off on their corporate paperwork. But it's easy to forgive the crypto crowd for feeling optimistic and a little giddy given what else has happened in the last few days.

For starters, Monday also saw the Chairman of the FDIC, a powerful crypto opponent, resign in the wake of a scandal over a culture of toxicity and sexual harassment at the agency. Meanwhile, crypto boosters are still jubilant after a dozen Democrats in the Senate, including Majority Leader Charles Schumer, bucked their own party's position and voted for a bill that would make it easier for banks to hold crypto. While President Joe Biden said earlier that he would veto the bill, not everyone is sure about that following the Senate vote and a dawning realization among his party that crypto is more popular than people once thought.

If pro-crypto forces are the clear winners of this surprising series of developments in Washington, D.C., there is also an obvious loser: Sen. Elizabeth Warren (D-Mass.). The senior senator from the Bay State is not only the leader of her party's progressive wing, she has also long enjoyed an arrangement with the president that lets her dictate wide swaths of financial policy—including its ferocious opposition to crypto. But in the past week, the Senate vote on the crypto bill shows her hold over policy is weakening. At the same time, she lost an important ally with the resignation of the FDIC chair—whose job she fought to save. Warren's influence in her party is waning.

Or if you prefer a shorter version of all this drama out of D.C., in the words of a crypto bro, the week can be summed up as "long Ethereum, short Warren."

Jeff John Roberts
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@jeffjohnroberts

This story was originally featured on Fortune.com