Plasma, a Bitcoin sidechain designed for stablecoins, has drawn $500 million in stablecoin deposits for its upcoming token sale, with only $50 million worth of XPL tokens actually available. The frenzy saw one trader pay $100,000 in Ethereum priority fees to ensure their $10 million USDC deposit was processed quickly, reminiscent of the 2017 ICO craze. The sale, conducted via the Sonar platform, allows depositors to earn yield and future token purchase options without obligation. Stablecoins, a cornerstone of crypto trading, are gaining regulatory attention, with the U.S. Senate considering the GENIUS Act. Meanwhile, Circle’s USDC issuer saw its NYSE debut soar, reflecting broader market excitement. Critics note the sale’s dominance by crypto whales, with the top 10 participants claiming 40% of deposits, while 141 smaller traders contributed under $1,000 each. The event has reignited debates about ICOs’ return and retail investor risks.
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GENIUS Act Boosts Stablecoin Legitimacy for Institutions
The GENIUS Act, designed to legitimize stablecoins for institutional use, has advanced in the US Senate with a 66–32 procedural vote. The bill aims to establish clear rules for stablecoin collateralization and enforce Anti-Money Laundering compliance, potentially accelerating institutional adoption. After initial setbacks in early May, the legislation is now headed for a full Senate debate, signaling a significant step toward regulatory clarity in the crypto sector. Analysts suggest this could influence global stablecoin policies.
read moreGENIUS Act Delay a Minor Setback, Passage Expected Soon
The GENIUS Act, a key stablecoin regulation bill, faced a minor delay in the US Senate but is expected to pass in the coming weeks, according to Cody Carbone, CEO of the Digital Chamber. Speaking at Consensus 2025, Carbone emphasized the bipartisan appeal of the bill, which seeks to protect US dollar hegemony in global markets. Failure to pass the legislation before the 2026 midterm elections could risk reversing the current positive regulatory environment for crypto and destabilizing the markets. The bill is seen as critical for establishing clear regulatory frameworks for stablecoins in the US.
read moreSenate Blocks GENIUS Act, Stablecoin Regulation Stalls
The Senate denied the motion to invoke cloture on the GENIUS Act, a bill designed to regulate stablecoins in the US, with a 49-48 vote against. Senate Majority Leader John Thune criticized Democrats for using the filibuster, calling it a missed bipartisan opportunity. Treasury Secretary Scott Bessent warned that without federal oversight, stablecoins will face fragmented state regulations, hindering US competitiveness. Lawmakers and industry leaders, including Senator Cynthia Lummis and Galaxy Digital’s Alex Thorn, remain optimistic about reintroducing the bill soon. The delay highlights ongoing debates over crypto regulation and America’s role in financial innovation.
read moreGENIUS Act Fails Senate Cloture Amid Crypto Concerns
The GENIUS Act, formally known as the Guiding and Establishing National Innovation for US Stablecoins of 2025 Act, failed to clear a Senate cloture vote on May 8 by a single vote. Sponsored by Senator Bill Hagerty and co-sponsored by bipartisan lawmakers, the bill faced last-minute resistance from Senate Democrats, who raised objections tied to former President Donald Trump’s cryptocurrency activities. Despite amendments introducing stricter Anti-Money Laundering (AML) requirements for stablecoin issuers, the legislation stalled, marking a setback for U.S. crypto regulation efforts. The bill’s failure highlights ongoing political tensions surrounding cryptocurrency policy and stablecoin oversight.
read moreSenate Rejects GENIUS Act, Jeopardizing Crypto Legislation
The GENIUS Act, which aimed to establish a legal framework for stablecoins in the U.S., suffered a major blow after failing a key Senate procedural vote. Several previously supportive Democrats voted against cloture, citing unfinished text and concerns over anti-money laundering provisions. The failure jeopardizes not only this bill but also other pending crypto legislation, as bipartisan momentum falters. Last-minute negotiations and White House pressure failed to sway Democrats, with some blaming partisan politics. The crypto industry’s years-long lobbying efforts now face uncertainty, potentially derailing what had been seen as a top legislative priority for 2025. While some hope remains for a future vote, the path forward appears increasingly difficult.
read morePaul Atkins Confirmed as SEC Chair, Shifts Crypto Policy
The U.S. Senate confirmed Paul Atkins as the new SEC Chair, succeeding Gary Gensler, with a 52-44 vote along party lines. Atkins, a former SEC Commissioner and Wall Street consultant, is expected to pivot the agency toward a more innovation-friendly regulatory approach for digital assets. His background includes leading the Token Alliance and holding up to $6M in crypto-related assets. Under Acting Chair Mark Uyeda, the SEC had already begun deregulatory steps, such as dismissing crypto enforcement cases and repealing SAB 121. Atkins advocates for a principles-based framework, coordination with the CFTC, and streamlined ETF approvals. The crypto industry anticipates policy shifts, including safe harbor provisions for decentralized protocols and progress on stalled ETF applications for tokens like XRP and Solana. Critics, including Senator Elizabeth Warren, have raised concerns about Atkins’ Wall Street ties. The SEC now faces pressure to redefine crypto oversight while managing broader institutional changes.
read moreInstitutional Crypto Investors Withdraw 415 Million Ending Long Buying Streak
Institutional crypto investors have ended a 19-week buying streak, pulling out $415 million from digital asset products, according to CoinShares. This shift follows a hawkish stance from the Federal Reserve and disappointing inflation data, with Bitcoin experiencing the largest outflows of $430 million. In contrast, altcoins like Solana, XRP, and Sui saw modest inflows.
read moreCynthia Lummis Appointed Chair of Senate Subcommittee on Digital Assets
Senator Cynthia Lummis has been appointed chair of the newly established Senate Banking Subcommittee on Digital Assets, aimed at advancing bipartisan legislation for a comprehensive legal framework for digital assets. Lummis emphasized the importance of digital assets for the future of financial innovation in the U.S. and expressed her commitment to guiding legislation to strengthen the U.S. dollar and support President Trump’s vision of making America a global crypto hub.
read moreCountries Increasingly Buy Bitcoin Signaling Global Adoption and Market Rally
Mike Novogratz, CEO of Galaxy Digital, reports a significant surge in global Bitcoin adoption, with countries purchasing in large volumes. He notes that geopolitical factors, including interest from international leaders, could lead to a major market rally. While he sees potential benefits for the U.S. in establishing a Strategic Bitcoin Reserve, he remains cautious about its likelihood due to legislative complexities. Novogratz also highlights a generational shift in investment preferences, suggesting Bitcoin could rival gold’s market cap, potentially reaching $800,000 per BTC in the next decade.
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