TL;DR

SEC dismisses Binance case, banks cleared for Bitcoin, BlackRock rotates BTC to ETH, FTX payouts begin.

Highlights

• SEC dismisses Binance lawsuit with prejudice after $4.32B penalty; Zhao paid $50M fine and resigned 1.
• SEC clarifies protocol staking of covered crypto assets is not a securities offering; liquid staking not addressed 2.
• All U.S. banks now authorized to offer Bitcoin services; BlackRock, Stifel, Wells Fargo highlight rising institutional demand 3.
• BlackRock rotates 4,113 BTC ($429M) to Coinbase , boosts Ethereum holdings to $4B with $95M ETF buy; Fidelity adds $29.8M ETH 56.
• Twenty One Capital acquires 25,812 BTC (~$3B) from Bitfinex and Tether; Reitar Logtech plans $1.5B Bitcoin treasury buy 78.
• FTX begins $5B in creditor payouts via Kraken and Bitgo, potentially increasing market liquidity and volatility 4.
• Stablecoin market cap tops $250B; Tether’s USDT at $153.7B, Circle’s USDC at $60.9B; Circle upsizes IPO to $7.2B valuation 910.
• Tether launches XAUt0 , omnichain gold token on TON, $770M market cap, redeemable for physical gold 11.
• Aave to launch Umbrella upgrade: new security model, 12% stablecoin APY, CoWSwap integration, $7B+ in stablecoins 15.
• Ethereum Foundation restructures R&D post-Pectra, targets 10x Layer 1 scaling, sub-100 staff 16.
• May 2025 crypto hacks total $244M in losses; $157M recovered from Cetus-Sui breach 17.
• Bitcoin hits $109,933 high; $1.8B Q2 ETF inflows; SEC rejects ETH, SOL staked ETF proposals 18.
• MicroStrategy adds 705 BTC, total holdings now 580,955 BTC 19.
• U.S. Senate advances GENIUS Act for stablecoin regulation; Circle IPO, SEC roundtable signal regulatory momentum 2010.
• Pump.fun seeks $1B token sale at $4B valuation; Solana ecosystem sees fee growth, SOL dips 12.
• Binance US lists HYPE, Hyperliquid’s token; Hyperliquid captures up to 80% of DeFi perps volume 13.
• Robinhood closes $200M Bitstamp acquisition, gains 50+ global crypto licenses, enters institutional crypto 14.

Commentary

The U.S. regulatory environment shifted notably this week, with the SEC dismissing its Binance lawsuit and clarifying that protocol staking of covered crypto assets is not a securities offering 12. While this removes a major overhang for centralized exchanges and PoS networks, the legal status of liquid staking and restaking remains unresolved 2. The SEC’s continued rejection of staked ETF proposals for ETH and SOL maintains uncertainty for staking-related products 18.

Institutional adoption is accelerating. All U.S. banks are now cleared to offer Bitcoin services, with BlackRock , Stifel, and Wells Fargo all highlighting client demand and positioning for broader market integration 3. BlackRock’s move to rotate BTC into ETH, alongside Fidelity’s ETH accumulation, signals a tactical shift by large asset managers and may foreshadow further institutional rotation into Ethereum and select altcoins 56. Meanwhile, large-scale corporate treasury buys by Twenty One Capital and Reitar Logtech underscore ongoing supply absorption by non-traditional actors 78.

Market liquidity is in focus as FTX (if available) $5B creditor payouts begin, likely increasing short-term volatility as recipients decide whether to re-enter the market or exit 4. The stablecoin sector continues its rapid expansion, with Tether’s USDT and Circle’s USDC both posting record market caps; Circle’s upsized IPO and Tether’s launch of the XAUt0 gold token on TON reflect ongoing innovation and institutionalization in digital asset infrastructure 91011.

DeFi and altcoins remain active: Aave ’s upcoming Umbrella upgrade introduces a new risk model and higher stablecoin yields, while Hyperliquid’s HYPE token listing and dominance in DeFi perps signal continued competition with centralized exchanges 1513. The Ethereum Foundation’s post-Pectra restructuring and focus on scaling could impact Layer 2 adoption and network economics in the coming quarters 16.

Traders should monitor the impact of institutional portfolio rotations, FTX-related liquidity events, and regulatory developments—especially around staking, stablecoins, and ETF products 41820. Security remains a concern after $244M in May hack losses, though partial recoveries show improved response 17. Sector rotation and risk management are key as volatility persists across majors, DeFi, and altcoins.