25/05/2025. Weekly CryptoNews Digest (May, 19 – May, 25)

Hello everyone, and welcome back to the MNO blog — your go-to resource is right here! Since our launch in 2007, my mission has remained the same: to be your trusted source for practical insights, breaking down the latest headlines, and helping you navigate the ever-changing world of digital assets. I’m genuinely excited to continue this journey with you—a path filled with incredible opportunities and groundbreaking developments in the crypto space. Your ongoing readership and engagement mean everything!

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Now, let’s dive into this week’s MNO Weekly CryptoNews Digest, covering May 19th to May 25th, 2025. We’ll explore the most impactful developments and key trends shaping the crypto market. Get ready for an insightful journey into the future of finance—I hope you find it valuable!

$112K BTC: GENIUS RALLY OR FOOL’S GOLD PEAK?

Bitcoin mania gripped the markets this week as the flagship cryptocurrency smashed through previous barriers to establish a new all-time high. On May 22nd, Bitcoin’s price surged to a record $112,509.65 on some exchanges like Whitebit, and hit $111,875 according to other market data providers, sending waves of excitement and intense speculation throughout the global crypto community. This new peak, surpassing the $100,000 milestone achieved earlier in the year and previous highs around $109,993 in January, underscored a powerful resurgence in bullish momentum.

The surge to a new record was attributed to a confluence of factors, including sustained institutional interest, positive sentiment driven by ongoing US regulatory discussions around digital assets, and a broader market embrace of cryptocurrencies. The news of Bitcoin hitting unprecedented levels dominated financial headlines, drawing in fresh retail interest and fueling discussions about the asset’s maturation and its role as an alternative store of value. Trading volumes spiked as investors reacted to the breakout, eager to capitalize on the upward trajectory.

Following the initial euphoria of the new peak, Bitcoin’s price experienced some volatility, with profit-taking leading to a slight pullback. For instance, after hitting its record, it was seen trading around $110,781 and later in the week around $107,763 by May 23rd, indicating a period of price discovery and consolidation. Despite this, the general sentiment remained overwhelmingly positive, with many analysts suggesting that this new high could pave the way for further gains as Bitcoin continues to attract mainstream attention and adoption.

However, the sharp ascent also brought renewed debate about market sustainability. While proponents celebrated the milestone as a vindication of Bitcoin’s long-term value proposition, skeptics raised concerns about potential overheating and the risk of a significant correction. The market now watches keenly to see if Bitcoin can establish strong support at these elevated levels or if the new record will prove to be a speculative zenith followed by a cooling-off period.

ETH ETF TEASE: “GENIUS” ACT OR JUST MORE DC LIES?

Speculation surrounding the potential approval of spot Ethereum Exchange-Traded Funds (ETFs) in the United States reached fever pitch this week, as the crypto industry closely monitored the progress of the “Guiding and Establishing National Innovation for U.S. Stablecoins Act“ (GENIUS Act). Procedural votes in the Senate on May 19th (66-32) and May 21st (69-31) successfully advanced the bill, clearing it for full debate and a potential final vote after the Memorial Day recess. This comprehensive legislation aims to provide a clearer legal framework for digital assets, including staking and decentralized finance (DeFi), which many believe could pave the way for regulatory green lights for more sophisticated crypto investment products like an Ethereum ETF.

The GENIUS Act’s passage is seen by proponents as a critical step towards legitimizing and integrating digital assets within the established U.S. financial system. Should the bill become law, it could significantly reduce the regulatory ambiguity that has historically plagued the crypto sector, potentially providing the SEC with a more defined pathway to approve Ethereum ETFs. Optimism stems from the belief that clear legislation would address many of the investor protection and market integrity concerns previously cited by regulators as reasons for denying such products, especially in light of Bitcoin’s recent record-breaking performance which has heightened interest in regulated crypto investment vehicles.

Market sentiment showed noticeable fluctuations in response to discussions around the GENIUS Act and its potential implications for Ethereum. Analysts suggested that a positive outcome could unlock substantial institutional investment into Ethereum, mirroring the impact seen with Bitcoin spot ETFs, which have been partly credited with Bitcoin’s recent surge. Conversely, any delay or failure of the act could dampen spirits and prolong the uncertainty that has characterized the U.S. approach to crypto financial products beyond Bitcoin.

However, skepticism remains within parts of the crypto community, with some viewing the legislative efforts with caution, recalling previous instances where promising regulatory developments stalled or failed to deliver on their perceived potential. The debate continues as to whether the GENIUS Act will truly usher in a new era of clarity and innovation for crypto in the U.S., or if it represents another complex hurdle in the long road to mainstream financial acceptance, particularly for assets like Ethereum aiming for ETF status.

PECTRA’S CHEAP FEES: ETH KILLER OR BTC’S POOR COUSIN?

While Bitcoin stole the limelight with its new all-time high, Ethereum’s Pectra upgrade, which began its phased rollout earlier in May, continued to be a major talking point this week. Reports highlighted a significant boost in network confidence and, more tangibly, a dramatic reduction in transaction fees on Ethereum’s Layer 2 scaling solutions. This development is largely attributed to the ongoing benchmark testing phase of Proto-Danksharding (EIP-4844), a key component of Pectra designed to make data availability for Layer 2s more efficient and cheaper, a crucial step as Ethereum aims to maintain its utility and appeal.

The plummeting gas fees on prominent Layer 2 networks like zkSync, Starknet, Scroll, and Polygon are seen as a direct consequence of EIP-4844’s implementation. By creating a dedicated space for “blobs” of data from Layer 2 rollups, Proto-Danksharding significantly reduces the cost these networks incur to post transaction data back to the main Ethereum chain.6 This has translated into noticeably lower transaction costs for end-users, enhancing the usability and competitiveness of Ethereum’s scaling ecosystem, even as the broader market celebrated Bitcoin’s new price records.

This technical advancement, coupled with Ethereum co-founder Vitalik Buterin’s recently articulated vision to make Ethereum “as simple as Bitcoin” within the next five years, has contributed to a renewed sense of optimism around the network’s future. Events like ETHVietnam and ETHDublin, held this week and focusing on Ethereum’s practical applications in finance, GameFi, AI, and Web3, further underscored the vibrant development activity and innovation occurring within the ecosystem, aiming to build fundamental value irrespective of short-term market euphoria.

Despite these positive strides, questions linger about whether these improvements will be sufficient to address Ethereum’s long-standing scalability challenges and significantly boost its price performance relative to Bitcoin’s recent surge. While lower Layer 2 fees are a welcome development, the core Ethereum network’s capacity and gas fees for Layer 1 transactions remain a concern for some users and developers, prompting ongoing debate about the network’s long-term architectural roadmap and its ability to capture a larger share of the market’s enthusiasm.

WALL STREET INVADES CRYPTO: DECENTRALIZATION DEAD?

A flurry of significant developments this week underscored the accelerating trend of institutional adoption and the deepening integration of cryptocurrency firms into mainstream finance, a trend likely emboldened by Bitcoin’s recent record-breaking price. Perhaps the most symbolic of these was major U.S. cryptocurrency exchange Coinbase officially joining the prestigious S&P 500 index on May 19, a move that grants it wider exposure to traditional investment portfolios and marks a milestone for the crypto industry’s maturation.

Beyond Coinbase’s landmark inclusion, the week saw a continuation of strategic acquisitions and innovative product launches. U.S.-based crypto infrastructure provider Anchorage Digital announced its agreement to acquire Mountain Protocol, a Bermuda-regulated U.S. dollar stablecoin issuer, aiming to bolster its institutional stablecoin capabilities. Concurrently, fintech giant Robinhood revealed plans to acquire WonderFi, a Canadian crypto trading platform, signaling its expansion into the Canadian market and a broadening of its crypto service offerings, all happening as market sentiment was buoyed by Bitcoin’s strong performance.

The wave of institutional engagement extended to major financial players launching novel crypto-related products. Investment management firm VanEck launched its first tokenized investment fund, VBILL, on the Securitize platform, allowing for traditional financial assets to be represented on a blockchain. Furthermore, global banking giant Standard Chartered announced a strategic partnership with institutional digital asset prime broker FalconX to streamline cross-border crypto settlements and provide banking services for institutional clients. This follows earlier news of JPMorgan’s asset management arm completing its first public blockchain transaction.

While these moves are widely interpreted as strong validation for the digital asset class and a sign of its inevitable mainstream integration, they also spark debate. Some observers express concern that increased institutional control could dilute the original decentralized ethos of cryptocurrencies. Others question whether traditional financial institutions are fully prepared for the unique risks associated with the crypto market, or if this rapid embrace, potentially accelerated by the allure of returns seen in assets like Bitcoin, is merely a chase for yield in a new asset class, potentially leading to systemic vulnerabilities if not managed cautiously.

GLOBAL CRYPTO CRACKDOWN: UK/EU LEAD, US LAGS OR LURKS?

Global regulatory bodies continued their efforts to establish comprehensive frameworks for the cryptocurrency industry this week, with significant advancements in the United Kingdom and the European Union contrasting with ongoing legislative and agency indecision in the United States. HM Treasury in the UK published a draft Order on May 19th outlining new regulated activities specific to cryptoassets, including operating trading platforms, issuing stablecoins, and custody services, while the Financial Conduct Authority (FCA) released a discussion paper on its proposed new cryptoasset regime. These moves aim to create clarity as interest in digital assets, highlighted by Bitcoin’s recent price records, continues to grow.

Across the Channel, the European Union also made strides in solidifying its Markets in Crypto-Assets (MiCA) regulation. New Regulatory Technical Standards (RTS) and supervisory guidelines concerning market abuse under MiCA were introduced, aiming to enhance investor protection and market integrity. Additionally, the European Banking Authority (EBA) finalized RTS that extend central contact point requirements to cryptoasset service providers, further clarifying operational expectations for firms within the EU, demonstrating a proactive approach to managing the burgeoning crypto market.

These concerted efforts in the UK and EU to create bespoke regulatory environments for cryptoassets stand in some contrast to the situation in the U.S. While the GENIUS Act saw procedural advancements this week, a comprehensive federal framework remains elusive. Earlier in the month, the Federal Reserve notably withdrew some of its previous crypto-asset guidance for banks. This fragmented approach persists even as events like Bitcoin hitting a new all-time high underscore the urgency for clear U.S. Regulations.

This divergence in regulatory momentum is a source of considerable discussion. While clearer rules in the UK and EU could attract businesses seeking legal certainty, the perceived stalemate and “regulation by enforcement” approach in the U.S. are seen by many as stifling innovation and driving crypto businesses offshore. The debate rages on whether the more prescriptive European models will prove more effective than the slower, more market-driven (and often contentious) path being navigated in the United States, especially as the crypto market demonstrates significant growth and volatility.

DEFI’S DIRTY SECRET: BILLIONS IN TVL, RAMPANT SCAMS?

The decentralized finance (DeFi) sector showcased its continued growth trajectory this week, with Total Value Locked (TVL) across various protocols reportedly climbing to new record levels. Platforms built on Ethereum, Cardano, and Solana were among those benefiting from this resurgence, signaling increasing adoption of decentralized financial solutions like lending, borrowing, and trading. This growth reflects a maturing ecosystem attracting both retail and institutional participants seeking yield and alternative financial services, a trend occurring alongside the excitement of Bitcoin’s new price milestones.

However, the positive news from the broader DeFi space was juxtaposed with alarming reports regarding illicit activities, particularly within the Solana ecosystem. A “2025 Rug Pull Report” from Solidus Labs, widely circulated this week, alleged that an extraordinarily high percentage of tokens launched on platforms like Pump.fun (approximately 98.7%) and liquidity pools on Raydium exhibited characteristics of pump-and-dump schemes or rug pulls. Such statistics cast a dark shadow over the rapid innovation occurring on these platforms, serving as a stark reminder of the risks present in less regulated corners of the market.

Adding to concerns, news emerged of Cetus, a decentralized exchange and liquidity protocol, offering a $5 million bounty for information leading to the identification of a hacker, following an incident involving a freeze on the Sui network that also raised questions about decentralization. Furthermore, reports detailed the continued operation of large-scale illicit marketplaces like Xinbi Guarantee, which allegedly uses the USDT stablecoin as its primary payment method for fraudulent activities, processing billions in transactions. A $2.1 million exploit of Mobius Token on the BNB Chain also highlighted ongoing security vulnerabilities.

This stark contrast between the growth in legitimate DeFi activity and the pervasive nature of scams and exploits fuels intense debate about the sustainability and trustworthiness of the decentralized space. While DeFi offers transformative potential, and the overall crypto market cap benefits from events like Bitcoin’s new highs, the prevalence of bad actors and vulnerabilities threatens to undermine investor confidence and attract heavy-handed regulatory intervention, creating a critical challenge for the industry to address security and user protection effectively.

IMF INSIDER: BITCOIN WILL KILL THE DOLLAR?

A significant stir was created in both crypto and traditional finance circles this week following comments from Kenneth Rogoff, a former chief economist at the International Monetary Fund (IMF) and member of the Federal Reserve Board. In an interview that gained traction around May 24th, Rogoff reportedly highlighted the growing influence of cryptocurrencies, particularly in light of events like Bitcoin reaching new all-time highs, and posited that their increasing usage could begin to chip away at the long-standing global dominance of the U.S. dollar, especially as geopolitical tensions rise.

Rogoff challenged critics who dismiss cryptocurrencies as mere scams or worthless assets, arguing that the notion of cryptocurrency transactions lacking a “fundamental value proposition” is incorrect. He pointed out that while the U.S. dollar has traditionally been the preferred payment method in the global underground economy, cryptocurrencies are increasingly taking precedence in these areas. This recognized utility as a medium of exchange, especially for transactions seeking to bypass traditional oversight, constitutes a tangible value proposition according to Rogoff.

The discussion ignited by Rogoff’s comments touches upon the broader geopolitical implications of cryptocurrencies, a debate amplified when the leading digital asset, Bitcoin, demonstrates significant price strength and global interest. As nations and individuals seek alternatives to dollar-denominated assets and payment rails, particularly in regions facing sanctions or economic instability, cryptocurrencies are increasingly seen as viable options. The rise of stablecoins, often pegged to the U.S. dollar but operating outside traditional banking, also presents a complex dynamic for monetary sovereignty.

While some dismiss these concerns as exaggerated, pointing to the dollar’s deep liquidity, established legal frameworks, and the sheer scale of the U.S. economy, Rogoff’s statements have added a serious voice to the debate. The controversy lies in the extent and imminence of this threat: are cryptocurrencies, energized by Bitcoin’s record-breaking runs, a minor niche, or do they represent a fundamental technological shift that could reshape global financial power structures in the decades to come, challenging the economic leverage the U.S. currently wields through its currency?

Incredible! What a jam-packed week it’s been in the world of crypto. The pace of innovation and movement is truly remarkable. A huge thank you for being a valued part of the MNO community and sharing this journey with us.

As Sunday rolls in, take some well-deserved time to unwind and recharge. And while you’re at it, don’t forget to cast your vote in the MNO TalkBack poll—your input is essential in shaping what we bring you.

I’m already looking forward to connecting with you again next Sunday for the latest Weekly CryptoNews Digest. Keep growing your digital asset holdings, whatever they may be, and remember—we’re right here beside you in your financial exploration. You are the pulse of MNO—For Money Lovers!

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