According to Eric Balchunas, the market is responding positively to news of progress with the SEC, even though a formal deal has not been reached. Traders are focused on the immediate sentiment shift, which has led to a noticeable uptick in cryptocurrency prices and trading volumes as optimism builds around potential regulatory clarity (source: Eric Balchunas on Twitter, May 11, 2025). This suggests that even incremental progress with regulators is enough to catalyze bullish momentum in the crypto market.