We had another quite eventful week on the crypto market, with several developments that shaped the way the industry will enter the second half of the year.
Monday – Fed Updates Its Supervisory Model
Monday started out with reports about a hacker going by DayTwo successfully stole $4M from Coinbase users after a phishing scam where the criminal impersonated the exchange’s customer support.
Also on this date, the Federal Reserve announced that it had removed ‘reputational risk’ from the supervisory model. This development is important for crypto because it eliminates a vague justification banks used to deny services to crypto firms, making it easier for the industry to access traditional financial infrastructure.
Meanwhile, the cryptocurrency market saw a much-needed recovery after news of a ceasefire in the Middle East started to erupt. On that day, Bitcoin recovered from its low at $98K, going upwards of $106,000 in a major intra-day rally.
Tuesday – Powell Acknowledges Crypto
The Federal Housing Finance Agency (FHFA) revealed it’s reviewing how crypto holdings could factor into mortgage applications. If approved, this could allow borrowers to use digital assets as reserves—without needing to liquidate them—signaling a major shift in how traditional institutions perceive crypto wealth.
In Europe, the ECB announced a new liquidity architecture rooted in market-based tools instead of balance sheet expansion. President Joachim Nagel confirmed the pivot away from active QE toward interest-rate-driven policy, hinting at a return to normalcy despite geopolitical and economic uncertainty.
Meanwhile, Fed Chair Jerome Powell offered a rare nod to crypto in his testimony before Congress. He acknowledged a “very significant change in tone” around the industry, noting that banks are free to provide services to crypto firms, so long as core safety and soundness standards are upheld. It’s one of the strongest signals yet that sentiment in Washington is beginning to soften.
Wednesday – Markets Rally, Crypto Policy Picks Up Speed
After ceasefire negotiations appeared to be heading in the right direction, the Nasdaq surged past 22,500, hitting new highs as tech stocks rallied. Risk appetite returned across sectors, and Bitcoin followed, jumping above $107,000.
Meanwhile, the SEC’s Office of Investor Advocacy and Education confirmed that crypto regulation will remain a top priority through 2026. Its Crypto Task Force is gathering data on lending, staking, and custody models.
Also, Invesco and Galaxy Digital filed to launch a Solana ETF, becoming the ninth issuer in the race. Analysts are now giving a 90% chance of a SOL ETF approval in 2025.
Thursday – U.S. GDP Shrinks in Q1
We started off Thursday with the report that Kraken secured a MiCA license in Ireland, becoming one of the first global crypto exchanges authorized under Europe’s new framework. The license gives it access to all 30 EEA countries, reinforcing Kraken’s growth strategy and institutional credibility across the region.
Later in the day, Binance announced a global law enforcement training program focused on blockchain crime. With crypto-related losses surpassing $3 billion in 2024, the exchange is investing in education and partnerships to improve oversight. The effort could also help Binance regain trust in key regulatory markets.
Finally, the U.S. economy shrank by 0.5% in Q1, according to revised data. Federal spending cuts, weaker consumer demand, and a spike in imports ahead of tariffs dragged GDP into negative territory. It’s the first quarterly contraction since the pandemic and a clear sign that headwinds are building.
Friday – Ripple Case Ends, Inflation Ticks Up
We kicked off Friday with a wild trading story: one anonymous trader turned $6.8K into $1.5 million on Hyperliquid, all while keeping drawdown under 6.5%.
Later in the day, the ECB confirmed that fintechs will gain direct access to TIPS and TARGET2 starting in October. The move allows licensed payment and e-money institutions to plug directly into the Eurosystem.
Meanwhile, Ripple’s long-running legal battle with the SEC officially ended. Both sides dropped their appeals, locking in the 2023 ruling that XRP is not a security in retail markets, but keeping restrictions on institutional sales.
Finally, the Fed’s preferred inflation gauge came in hotter than expected. Core PCE rose 0.2% month-over-month and 2.7% year-over-year, the first uptick since February. With Q1 GDP revised down to –0.5%, the Fed now faces a tough mix of rising inflation and slowing growth… a setup that’s starting to look like stagflation.
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