Bitcoin Hits $111K, Stablecoin Regulation Moves Ahead, ETF Inflows Surge

TL;DR

• Bitcoin hits a new ATH at $111,970, but on-chain data shows market isn’t overheated

• U.S. Senate advances the GENIUS Act, pushing stablecoin regulation forward

• Finery Markets strengthens institutional stablecoin trading infrastructure

• Major U.S. banks explore joint stablecoin project

• Bitcoin and Ethereum ETFs see $1B in single-day inflows

• Cetus Protocol offers $6M bounty to recover $223M in hacked funds

• SEC begins review of staked Tron ETF, delays others

Bitcoin Breaks $111K, but Analysts Say Market Isn’t Overheating Yet

Bitcoin surged to a new all-time high of $111,970 on May 22 before pulling back back to around $108,000. While some traders are cautious about a potential correction, on-chain data suggests the rally may still have room to run. According to various analysts, key overheating indicators remain relatively muted compared to previous market peaks. Funding rates are only moderately elevated, and short-term holders (STHs) have yet to show widespread profit-taking despite recent gains.

The Spent Output Profit Ratio (SOPR) for STHs is currently at 1.02, suggesting that many recent buyers are in profit, but only a small portion have sold. Meanwhile, Bitcoin’s MVRV Z-score — a long-term valuation gauge — has risen but remains well below levels typically associated with market tops. At 2.8, the metric points to further potential upside before entering overheated territory.

Institutional flows also tend to taper off during these periods, which could increase the risk of short-term pullbacks. However, Glassnode data shows that BTC accumulation between $93,000 and $95,000 has created a strong support zone, which may help cushion any downward moves.

U.S. Senate Advances GENIUS Act in Historic Move for Stablecoin Regulation

The U.S. Senate moved one step closer to establishing a formal regulatory framework for stablecoins with its vote to advance the Guiding and Establishing National Innovation for U.S. Stablecoins Act, or the GENIUS Act. The bipartisan legislation garnered strong support across party lines, with a 66-32 cloture vote clearing the way for debate and amendments. If passed, the bill would mandate that stablecoins be fully backed by U.S. dollars or high-quality liquid assets and would require annual audits for large issuers.

Senator Bill Hagerty, who co-authored the bill, called it “groundbreaking” and stressed its potential to cement the U.S. dollar’s dominance in the age of digital payments. Industry leaders echoed his sentiment, calling the bill’s momentum “historic.” Ji Kim, president of the Crypto Council for Innovation, noted the effort reflects months of cross-party collaboration and major behind-the-scenes negotiations.

With more than $160 billion in stablecoins circulating globally, the legislation aims to draw that demand toward U.S. treasuries and domestic financial rails. It could also act as a catalyst for further institutional engagement and new product development in the regulated digital asset space.

As the regulatory foundation strengthens, infrastructure players like Finery Markets are already enabling the next phase of stablecoin growth. Despite rapid adoption in retail and cross-border payments, stablecoins have long lacked institutional-grade secondary markets. Finery Markets is helping fill that gap. In 2025 alone, we processed more than $3 billion in stablecoin transactions — a 157% year-over-year increase — across 200,000+ orders and 35 countries.

Our platform offers stablecoin issuers a ready-made gateway to institutional liquidity: 140+ takers, 15 regulated LPs, and FX settlement in 20 fiat currencies. Issuers can launch pairs in under 24 hours without capital requirements or listing hurdles, access real-time settlement across chains, and reduce depeg risks through non-custodial RFQ trading.

Major U.S. Banks Explore Joint Stablecoin Initiative

Some of the biggest names in American finance are reportedly in talks to create a unified stablecoin product. According to a Wall Street Journal report, firms like JPMorgan, Bank of America, Citigroup, and Wells Fargo are exploring a joint venture that would leverage infrastructure from The Clearing House and Zelle’s parent company, Early Warning Services. The project remains in its early stages and is contingent on the outcome of U.S. legislation like the GENIUS Act.

The discussions underscore how seriously traditional financial institutions are now taking digital assets — and particularly stablecoins. By collaborating on a jointly backed product, these firms would not only be positioning themselves for compliance with upcoming regulation but also aiming to provide an alternative to decentralized or foreign-issued stablecoins that have dominated the market so far.

While details of the venture are still under wraps, the potential for a bank-backed stablecoin consortium raises important questions about market share, infrastructure interoperability, and competition with crypto-native players. The move also aligns with broader regulatory trends pushing for higher standards in liquidity, custody, and reserve backing — signaling that the next phase of stablecoin innovation could come from inside the banking system.

Bitcoin and Ethereum ETFs See $1 Billion in Daily Inflows as BTC Hits Record

Spot Bitcoin and Ethereum ETFs recorded a combined $1.05 billion in inflows on May 22, marking the highest daily total since January. The surge came as Bitcoin crossed a new all-time high of $111,970 before settling back near $110,700, while Ethereum saw its strongest inflows in months. The lion’s share — nearly $935 million — flowed into spot BTC ETFs, with Ethereum ETFs capturing a sizable $110 million.

This renewed wave of institutional interest has reinvigorated sentiment around crypto ETFs, which had been relatively quiet in recent weeks. The flows suggest investors are regaining confidence as the macro environment turns more favorable and crypto prices push higher. Analysts also noted that leverage use remains relatively modest, indicating the rally is being driven by genuine spot demand rather than speculative froth.

Still, some warn of short-term risks ahead. With institutional desks typically quieter on weekends, any dip in trading volume could lead to erratic price action. Yet for now, the ETF flows provide a powerful vote of confidence in crypto’s broader adoption narrative — reinforcing the view that these vehicles are becoming permanent fixtures in institutional portfolios.

Cetus Protocol Offers Hacker $6M Bounty After $223M Exploit

Sui-based decentralized exchange Cetus Protocol has offered a $6 million “white hat” bounty to the hacker responsible for a $223 million exploit last week. The attacker successfully drained $56 million worth of assets — bridged into Ethereum and converted into ETH — before Sui validators moved to freeze their remaining wallets. Cetus, with the help of data analytics firm Inca Digital, is requesting the return of 20,920 ETH and the frozen Sui-based funds in exchange for immunity from legal action.

The exploit has drawn scrutiny not only for its size but also for how quickly network validators stepped in to block the attacker. Critics argue that this level of intervention contradicts the ethos of decentralization and highlights potential centralization risks on newer Layer 1s like Sui. Others see it as a necessary security measure to protect users and recover stolen funds.

Regardless of how it plays out, the incident reignites ongoing debates around DEX security, chain-level control, and the ethics of offering bounties to attackers. It also serves as a reminder of the fragility of early-stage DeFi ecosystems — even as their TVL and user bases grow — and the need for stronger safeguards, audits, and incentive structures to minimize future exploits.

SEC Opens Review of Staked Tron ETF, Delays Other Decisions

The U.S. Securities and Exchange Commission has formally acknowledged Canary Capital’s filing for a staked Tron (TRX) ETF — the first public step in the regulatory review process. The proposal follows a string of altcoin-based ETF applications from Canary in recent months, including bids for Hedera, Sui, and Litecoin products. While it’s still early days, the SEC’s acknowledgment means the 240-day review clock has officially started.

Simultaneously, the agency delayed decisions on several other ETF proposals, including Bitwise’s spot XRP ETF, Coinshares’ XRP and Litecoin filings, and Fidelity’s updated in-kind model for a Bitcoin ETF. Bloomberg ETF analyst James Seyffart said these delays were expected, noting that early approvals are rare and most final rulings will likely come later this year.

The acknowledgment of the staked Tron ETF is notable because it raises fresh questions about how the SEC will treat staking-related products — particularly amid ongoing legal ambiguity around whether staking constitutes a security. As more ETF issuers test the boundaries of what’s allowed, this latest filing could help set new precedents in the race to bring yield-bearing digital assets to mainstream investors.