Crypto Weekly Market Wrap 26th May: Bitcoin Hits $112K as Regulation and Tariffs Shift Markets

This past week, the crypto market showed strong gains as Bitcoin recorded a new all-time high near $112,000. Many altcoins recorded double-digit gains within seven days, reflecting broad market momentum. Meanwhile, stablecoins and strategic reserve holdings are gaining traction, shifting from startup efforts to more established banking and state frameworks.

Moreover, regulatory developments also advanced across regions, with Asia finalizing rules and several U.S. states and cities adopting crypto policies. These steps support the growing infrastructure for cross-border finance and corporate crypto reserves. In the section below, we will discuss this crypto weekly market wrap in deeper detail.

U.S. Senate Advances Stablecoin Regulation Amid Political Split

The Senate took a big step by passing a key vote to push ahead the GENIUS Act, a bill controlling the use of payment stablecoins. The vote made it clear there are major differences within the Democratic Party, since 16 Democrats voted against the party and supported the bill on May 19.

This bipartisan bill is designed to create the country’s first comprehensive way to oversee stablecoins. Since it was first introduced with bipartisan favor, news about Donald Trump’s participation in crypto appears to have made some Democrats change their stance. Senator Mark Warner stressed that because blockchain is here to stay, it is better to adopt some regulation than none at all.

However, some progressive leaders, such as Senator Elizabeth Warren, did not support the bill. She said it undermines the country’s safety and the interests of everyday investors by letting figures such as Trump manipulate crypto prices. At the same time, Senator Michael Bennet came up with an opposite proposal called the STABLE GENIUS Act, which would prevent officials from pushing or issuing crypto assets during their time in office.

Trump’s Tariff Threats Stir Market Anxiety

On May 23, President Trump announced he was putting tariffs on European goods and Apple products. Donald Trump revealed that he had aimed a 50% tariff at EU goods and a 25% tariff on non-U.S. Apple imports, claiming talks had stalled and that Apple moved its manufacturing to India.

Donald Trump, clearly big mad that the European Union signed a deal for the minerals in Greenland, is now threatening 50% tariffs on EU goods.

Unhinged. pic.twitter.com/IyWC8KZptS

— Art Candee (@ArtCandee) May 23, 2025

Trump said the tariffs would help with trade and return many manufacturing jobs to the United States. Beginning June 1, 2025, the new duties will be introduced, increasing the uncertainty in the market. Crypto firm Santiment believes the rising trade disputes between the U.S. and the EU may lead to a weaker crypto market.

There was a lot of severe criticism when the announcement was made. According to Peter Schiff, the new tariffs are politically aimed and even more severe than those on Chinese goods. Maroš Šefčovič, the EU Trade Commissioner, said it was important for both sides to respect each other in trade. He revealed the EU might impose tariffs on U.S. goods as a form of retaliation.

Kraken to Launch Tokenized Stocks for Global Investors

Kraken is preparing to let users invest in tokenized shares of big U.S. companies such as Apple, Tesla and Nvidia. By doing this, traditional finance and blockchain will be combined, giving non-U.S. residents a new chance to invest in American stocks.

Through a partnership with Backed Finance, the exchange will offer “xStocks,” which are tokenized shares backed by real ones. These tokens will operate on the Solana blockchain, so they will be tradable every day of the week and on holidays. Because of this flexibility, fees may come down and the time it takes to settle transactions could be reduced, most advantageous for investors worldwide.

In total, Kraken is launching 50 tokenized stock and ETF products in Europe, Latin America, Africa and Asia. Each token can be redeemed for the cash value of the underlying asset, keeping prices aligned with traditional markets. The initiative works to solve problems such as heavy brokerage charges and a lack of stock choices open to foreigners.

Blum Co-Founder Arrested on Fraud Charges in Moscow

Telegram-based crypto venture Blum co-founder Vladimir Smerkis was arrested by police in Moscow on charges of large-scale fraud. Investigators were given permission by the court to hold Smerkis in custody as inquiries continued.

That's why I've said forget all the TG projects Drop

Blum Co-founder arrested pic.twitter.com/rUGQ3XvDxD

— Crypto with Khan ( SFZ ) (@Cryptowithkhan) May 19, 2025

Previously, Smerkis ran Binance’s local operations in Russia and is being investigated for suspected fraud concerning earlier businesses, Token Fund and Tokenbox. Investor losses from these projects are believed to exceed $15 million. According to Blum, Smerkis quit the project and is no longer involved.

Blum offers a way for users to trade crypto and get rewards through using a decentralized exchange within Telegram Mini Apps. The project guarantees that operations will carry on as normal despite the arrest.

Russia Drafts Law to Seize Digital Assets in Criminal Cases

A bill unveiled by Russia’s Ministry of Justice gives authorities the power to confiscate Bitcoin and other digital currencies in criminal cases. The law intends to improve how law enforcement takes action by seizing gadgets and blocking crypto transactions.

Deputy Minister Vadim Fedorov stated that the reason for the bill was to address legal gaps preventing authorities from handling illegal work in this industry. It establishes measures to maintain seized digital evidence, so it is secure until used for proper confiscation or refund to victims. The draft points out that involving security experts is necessary to look after assets, due to the challenges law enforcement faces with cryptocurrencies. The State Duma will soon conduct the first reading of the law.

Argentina Disbands LIBRA Memecoin Investigation Unit

An investigation into the LIBRA memecoin matter involving President Javier Milei and his sister was halted after authorities in Argentina canceled the unit. The news came days after a judge decided that Milei’s bank records should be unsealed.

Minutes after the LIBRA token debuted on Solana from Delaware-based Kelsier Ventures, its value went up and then plummeted. At first, Milei backed the memecoin by saying it would aid small businesses, but he later reversed that view when the token crashed by as much as 90%. Authorities looked into accusations that payments were made to influence Milei before the launch of LIBRA. Footage suggesting possible suspicious actions by the co-founders’ family members was looked at by prosecutors. The judge is pushing forward on the financial part of the trial, even though the unit is being closed.

Société Générale to Issue USD Stablecoin on Ethereum

SG Forge, the crypto arm of Société Générale, said it will launch a US dollar-backed stablecoin hosted on Ethereum. The bank is pioneering this as the first dollar stablecoin on a public blockchain meant for institutional customers.

Breaking: Banking Giant Société Général to launch USD stablecoin on Ethereum

This would be the first major bank to issue a USD stablecoin on a public blockchain

The project will be led by SG Forge, the bank's digital assets divisionhttps://t.co/qS8DEGqXg8

— The Big Whale (@TheBigWhale_) May 20, 2025

The move comes after SG Forge introduced EUR CoinVertible, a euro stablecoin. The new stablecoin has been developed to serve the market for digital assets with a $250 billion value linked to the dollar. Using an e-money license under EU law, SG Forge will debut on the Ethereum network with plans to later move to Solana. On this bank’s part, its stablecoin gives users a regulated option rather than those issued by Circle or Tether.

South Korea Eases Institutional Crypto Ban with Enhanced KYC Rules

The ban on institutional crypto investment is set to be lifted by South Korea from June. The Financial Services Commission has now required that crypto exchanges and banks upgrade their KYC processes.

Nonprofit organizations will soon be allowed to sell donated crypto assets, and exchanges can liquidate user fees paid in crypto. Now, institutions should carefully verify both the goals of transactions and their sources of funds to prevent money laundering. Rules will be imposed by the Korea Federation of Banks and the Digital Asset Exchange Association. The government targets permitting publicly listed companies and skilled investors to trade in crypto this year under new, enhanced AML rules.

Cetus DEX Exploited for $220 Million on Sui Blockchain

Cetus, the largest decentralized exchange on Sui, suffered a $220 million exploit due to fake tokens manipulating price oracles and reserves. Spoofed tokens were used by the attacker to mislead users about prices and drain liquidity pools, so they could take out SUI and USDC without returning the same value.

ANNOUNCEMENT

As of earlier today, we have confirmed that an attacker has stolen approximately $223M from Cetus Protocol. We have took immediate action to lock our contract preventing further theft of funds.

$162M of the compromised funds have been successfully paused. We are…

— Cetus (@CetusProtocol) May 22, 2025

After the attack, Cetus put its smart contracts in “pause” mode and validators recognized and prohibited stolen transactions from the attacker’s wallet accounts. However, over $60 million was moved to Ethereum and was laundered through multiple wallets. Additionally, Cetus came up with a whitehat settlement that would allow the hacker to give back most of the stolen funds while keeping a bit and escaping legal trouble. Law enforcement agencies and cybersecurity experts are part of the discussions.

Pakistan Creates Digital Asset Authority

The Pakistan Ministry of Finance established the Pakistan Digital Asset Authority (PDAA) to control exchanges, wallets, stablecoins, and DeFi. PDAA will further asset tokenization, legalize Bitcoin mining, and set up digital export methods.

The purpose of this authority is to ensure clear and helpful information for both local and overseas investors. It brings all management of digital assets under a single agency to promote both compliance and innovation.

U.S. DOJ Investigates Coinbase Cyberattack

The U.S. Department of Justice has launched a criminal investigation into a cyberattack on Coinbase. A database breach occurred when cybercriminals demanded $20 million from Coinbase, which opposed the ransom.

BREAKING $NEWS: DOJ LAUNCHES INVESTIGATION INTO @COINBASE CUSTOMER DATA BREACH INVOLVING BRIBED OVERSEAS CONTRACTORS pic.twitter.com/CLoLY664Tq

— blockchaindaily.news (@blckchaindaily) May 19, 2025

No user funds or private login details were taken in the attack, which only affected less than 1% of all users, exposing their names, addresses, and masked bank details. The investigation showed that someone from Coinbase’s overseas assistance staff was bribed. Coinbase pledged a $20 million bounty for anyone who helped identify the people behind the attack. The department cooperates with other countries’ agencies to bring charges against the attackers.

Trump’s Memecoin Gala Draws High-Profile Support and Criticism

President Trump hosted a gala for his memecoin, attracting crypto figures like Justin Sun and Lamar Odom. Around 220 leading TRUMP memecoin holders attended the event at Trump’s golf course. Justin Sun, who holds the largest amount of TRUMP tokens, was grateful for Trump’s backing of cryptocurrencies. In his remarks, Trump blamed the previous administration for bringing harsh restrictions on the industry.

In the meantime, lawmakers such as Senators Elizabeth Warren and Richard Blumenthal came out against the gala. They alleged Trump used his presidential power to profit and risked harming national security by dealing with foreigners. Press Secretary of the White House underlined that this was a private occasion and had nothing to do with her office’s responsibilities.

Major U.S. Banks Explore Joint Stablecoin Project

Leading banks JPMorgan Chase, Bank of America, Citigroup, and Wells Fargo are in talks about creating a joint stablecoin. The talks include industry players such as Early Warning Services and The Clearing House.

Bankers fear stablecoins might take money from deposits and disturb how they control payments. They hope to put greater limitations on tech firms when it comes to controlling stablecoins. According to Arthur Hayes, a noted crypto veteran, a joint bank stablecoin could compete with USDC and Tether, possibly changing how stablecoins operate.

Strategy Launches $2.1 Billion Preferred Stock Offering to Buy More Bitcoin

Strategy, the biggest holder of Bitcoin, unveiled plans to raise $2.1 billion through fundraising. 10% Series A Perpetual Strife Preferred Stock will be issued by the company using an “at-the-market” (ATM) approach. Selling by this approach helps maintain the price so it doesn’t drop unexpectedly. Besides buying more Bitcoin, Strategy plans to use the money for business expenses and to cover its daily operations. The terms of the offering are based on a prospectus the SEC approved earlier this year and will be adjusted as needed due to changes in the market.

According to CEO Michael Saylor, MicroStrategy invested $765 million to obtain 7,390 Bitcoins on May 19. On average, each Bitcoin was priced at around $103,498. Today, the company holds 576,230 BTC purchased for an average cost of $69,726 per bitcoin. The latest purchase fits into the company’s ongoing strategy to gradually build up its reserves of Bitcoin.

Digital Asset Investment Products Market Overview

According to the latest CoinShares report, digital asset investment products attracted $3.3 billion in inflows last week. Bitcoin led the surge with $2.9 billion, while Ethereum saw $326 million in new investments. Meanwhile, XRP experienced its first outflow in 80 weeks, with $37.2 million withdrawn. The total assets under management reached a record $187.5 billion earlier in the week.

Digital Asset Inflows Hit $3.3B in a Week, Driving YTD Total to Record $10.8B

Digital asset investment products saw inflows of US$3.3B last week. @Bitcoin saw inflows of US$2.9B @ethereum also saw inflows of US$326M. $XRP saw outflows of US$37.2M. Year-to-date inflows have… pic.twitter.com/eLnu5HfK8a

— CoinShares (@CoinSharesCo) May 26, 2025

The United States accounted for $3.2 billion of the weekly inflows, followed by Germany, Hong Kong, and Australia with smaller amounts. Swiss investors took profits, resulting in $16.6 million in outflows. The growing interest in digital assets appears linked to concerns about the U.S. economy and rising treasury yields, prompting investors to diversify.

Short-Bitcoin products also gained attention, with $12.7 million flowing in—the highest since December 2024. Overall, year-to-date inflows hit a record $10.8 billion, extending a six-week streak of strong digital asset demand.

Bitcoin Price Performance

The leading asset, Bitcoin, led the broad market last week, setting a new all-time high at $111,970 on May 22nd. However, the price declined to $106K after President Donald Trump announced the new tariff. Currently, the market has stabilized after an agreement on the extension of those tariffs by Trump. 

Technical indicators on the weekly chart display an ascending wedge pattern, indicating a robust bullish momentum. The RSI is trending slightly below the overbought market conditions at 68 levels. In addition, the MACD is trending in the positive region, indicating an increased buying pressure in BTC’s market.