Crypto Market Roundup: BTC Price New ATH, Regulatory Strides, Coinbase Joins S&P

Key Insights:

• May saw some bullish crypto market news headlines.
• Bitcoin hit $111K after a U.S.–China tariff truce.
• Coinbase rose 19.37% and joined the S&P 500 despite a $400M data breach.
• Five states passed crypto laws; Texas created a Bitcoin reserve.
• Bitcoin’s market cap topped $2.2T on Pizza Day.

May 2025 saw a string of super bullish crypto market news headlines. During the month, Bitcoin reached record levels. On its 15th “Pizza Day,” BTC topped $109,000, and within days hit $111,970. That rally lifted Bitcoin’s market cap above $2.2 trillion, briefly eclipsing Amazon.

Even after a pullback to about $105,546 by early June, Bitcoin was up roughly 10% for May. Derivatives activity was intense: options open interest reached an all-time high of $49.4 billion.

Analysts note this followed about 50 straight days of gains. A catalyst came on May 12, when a U.S.-China tariff truce boosted markets and sent BTC to $105,000.

US State Crypto Laws Advance

Regulators in several U.S. states approved pro-crypto measures, moving the crypto market. Texas lawmakers passed Senate Bill 21 on May 21, creating a Texas Strategic Bitcoin Reserve fund.

If signed by Gov. Abbott, Texas – already the largest crypto-mining state – would become the third U.S. state (after New Hampshire and Arizona) to hold Bitcoin on its balance sheet.

New Hampshire’s governor signed HB302 on May 6, 2025, making it the first state authorized to invest in digital assets like Bitcoin (market cap >$500 billion).

In Arizona, Gov. Katie Hobbs vetoed SB1025 on May 2, which would have let public funds invest up to 10% in crypto, but on May 5, she signed HB2749. The new law creates a “Bitcoin and Digital Assets Reserve Fund” to claim and stake abandoned crypto that goes unclaimed for 3+ years.

Nebraska enacted LB526 on May 14, giving public power districts authority over crypto miners: any miner using ≥1 megawatt must fund necessary grid upgrades, and new permits and reporting apply.

Oregon’s legislature passed SB167 on May 19, officially adding crypto into its Uniform Commercial Code and allowing digital assets to serve as collateral. By contrast, Alabama’s Senate indefinitely postponed SB282 on May 6, halting a proposed virtual-currency tax exemption.

Federal Crypto Policy Moves

At the federal level, regulators signaled a shift toward clearer crypto rules favorable to the crypto market. On May 15, the SEC’s Division of Trading and Markets issued FAQs on Crypto Asset Activities, laying out how registered broker-dealers can custody customer crypto and how transfer agents may use blockchain.

At the same time, the SEC and FINRA withdrew a July 2019 joint statement that had discouraged broker-dealers from holding crypto assets.

This guidance effectively relaxes earlier constraints on crypto custody. SEC Chairman Paul Atkins said on May 19 that Commission staff are drafting formal rule proposals on crypto, and “continue to ‘clear the brush’” on prior restrictions.

These steps, along with other upcoming proposals, mark important regulatory milestones toward integrating crypto into mainstream finance.

Coinbase Enters the S&P 500

Cryptocurrency exchange Coinbase Global made history in May by joining the S&P 500 index. S&P Dow Jones Indices announced on May 12 that Coinbase (ticker COIN) will replace Discover Financial, effective before trading opens on May 19.

Reuters noted this made Coinbase the first crypto company added to the benchmark index. The stock popped on the news: Reuters reported COIN surged nearly 15% on May 13 (one report described a 24% jump on the announcement), adding about $8 billion in market value.

Crypto media noted Coinbase stock was up 19.37% for May overall despite a $400 million security breach disclosed on May 15.

Oppenheimer analyst Owen Lau called the inclusion a “watershed moment” and raised his COIN price target to $293. Index funds now must add COIN shares, a boost for demand.

Coinbase reported Q1 revenue of $2.03 billion (up 24% year-on-year). Despite recent challenges (a data breach and an SEC inquiry), industry observers cheered the S&P milestone as “a new high for crypto adoption and industry growth”. Coinbase’s official statement highlighted it as a historic shift bringing the crypto market closer to traditional capital markets.

In sum, May 2025 saw the crypto market stride further into the mainstream. Bitcoin’s surge to approximately $112,000 and the piling-on of state and federal legislation underscored the growing acceptance of digital assets.

By month’s end, both analysts and market data underscored the themes of integration and maturation for the crypto market sector.

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