Crypto Weekly Market Wrap June 1 – Regulation, Stablecoins, Policy Moves and Fund Outflows Shape the Market

The crypto market experienced a busy period last week as regulation, fund flows, stablecoins, trading infrastructure, and institutional activity dominated industry headlines. From new policy proposals to exchange developments and major enforcement actions, the week showed how digital assets continue to shift among market growth, tighter oversight, trust, and resilience. In the sections below, let’s discuss major events that made headlines last week.

BitMine Enters Preliminary Russell Inclusion List

FTSE Russell placed BitMine on its preliminary Russell 1000 inclusion list on May 23. Chairman Tom Lee said the firm crossed the large-cap threshold of $5.7 billion. He added that index funds may influence demand. BitMine also reported 5,390,404 ETH holdings by May 25. Moreover, it staked 4,712,917 ETH and held crypto assets, cash, and investments worth about $12.3 billion. Lee described ETH dropping below $2,200 as attractive.

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TrapDoor Attack Targets Developer Package Ecosystems

On May 24, Socket researchers revealed TrapDoor, an active supply chain attack on crypto developers. The campaign consists of dozens of malicious packages on npm, PyPI, and Crates.io. The packages are aimed at DeFi, Solana, Sui, Move, and AI projects. They can steal private keys, wallet data, SSH keys, cloud credentials, and even API keys. They run through postinstall hooks, imports & build files.

Tether and Georgia Plan Lari Stablecoin

Tether announced plans to launch GEL₮, a Georgian lari-pegged stablecoin, with support from Georgia’s government on May 25. The project targeted lower costs, near real-time settlement, and programmable payments.

Tether and Georgia Plan to Launch Lari-Backed Stablecoin GEL₮

Tether said it plans to launch GEL₮, a stablecoin backed by the Georgian lari, with support from the Georgian government. GEL₮ is designed to lower transaction costs, enable near-instant settlement, programmable… pic.twitter.com/ypERmYdn9T

— Wu Blockchain (@WuBlockchain) May 25, 2026

Georgia also continued building digital asset and stablecoin rules. The framework covers reserves, redemption rights, issuer supervision, anti-money laundering controls, and compatibility with emerging U.S. stablecoin policy.

Hyperliquid Adds Official Off-Chain Prediction Markets

On May 25, Hyperliquid launched official prediction markets linked to off-chain events. Validators now publish markets via automated news-feed software that runs daily. The setup gives the network a formal event marketing channel.

Validators will also vote on deployment and settlement. However, they must assess rule clarity, outcome accuracy, and market quality before approving each event market. This process aims to limit unclear markets before launch.

Argentina Bill Moves Against Illegal Gambling Payments

On May 26, Argentina’s Ministry of Health submitted a bill that pulled crypto service providers into online gambling controls. The draft covered banks, fintech firms, exchanges, and wallet providers that support unlicensed betting platforms across Argentina.

Moreover, the proposal required stronger KYC, transaction checks, and due diligence. It also proposed two to four years in prison for firms or individuals that provide key services to illegal gambling operators. A Buenos Aires court had earlier blocked Polymarket.

United Kingdom Sanctions HTX-Linked Entity

The United Kingdom sanctioned Huobi Global S.A., the entity that operates HTX, on May 26 over alleged Russian-linked activity. The measures included asset freezes and payment restrictions. However, HTX issued a statement noting that the listed entity was distinct from the online exchange. It also added that the sanctions would not affect global operations, and user funds remained safe.

HTX is aware of the recent developments regarding the UK sanctions designations. The HTX exchange is committed to full compliance with all applicable laws and to cooperation with law-enforcement agencies worldwide.

The UK’s designation arrived today without prior notice or any…

— HTX (@HTX_Global) May 26, 2026

Binance Prepares Return to the Philippines Market

Binance partnered with BlockShoals Technologies to support a return to the Philippine market on May 26. BlockShoals is registered as a Crypto Asset Intermediary under Philippine SEC rules. Additionally, both firms said they had engaged with the regulator for more than two years. They also secured in-principle approval to enter the SEC regulatory sandbox in November last year, with BlockShoals acting as the local provider.

SoFi Launches Bank-Issued Stablecoin In-App

SoFi launched SoFiUSD for members inside its app on May 27. The company called it the first U.S. national bank-issued stablecoin available directly through a banking platform. The stablecoin offers 1:1 dollar redemption through SoFi Bank and supports Ethereum and Solana. Additionally, SoFi planned tokenized deposits, cross-border value movement, and Bullish exchange access. The rollout targeted nearly 15 million members.

Mastercard Receives New York BitLicense Approval

On May 27, Mastercard Transaction Services received a BitLicense from New York’s financial regulator. The approval supported Mastercard’s regulated work around digital asset payments and settlement infrastructure. Moreover, Mastercard said clear rules help build trust as digital value moves toward practical use. The BitLicense framework covers consumer protection, cybersecurity, financial integrity, and operational resilience. The approval also matched security, compliance, and risk expectations as payment systems continued to evolve globally.

China Courts Study Virtual Currency Rules

China’s Supreme People’s Court moved to deeper research on judgment rules for virtual currency cases. The work will also cover new cross-border finance disputes. Officials discussed the plan during a State Council press briefing on May 27.

JUST IN: 🇨🇳 China’s Supreme Court to study new judicial rules for crypto amid rising crypto-related cases. pic.twitter.com/j1ooWSLugc

— CGAA 👑 (@CGAPromotes) May 27, 2026

Officials said courts will prepare judicial interpretations for civil compensation tied to insider trading and market manipulation. The effort aims to support market stability and protect smaller investors. The court also highlighted changing financial case types.

DTC Tokenization Service Links with Stellar

DTCC and the Stellar Development Foundation announced plans to enable tokenization of DTC-custodied assets on Stellar on May 27. The plan was in response to the SEC no-action letter issued last year. DTC-tokenized assets were expected on Stellar in the first half of this year. The service is designed to maintain traditional protections while enabling market players to access assets digitally. It also maintains protections, entitlements, and safeguards found in traditional securities markets.

DeFi Security Debate Follows OpenZeppelin Remarks

OpenZeppelin co-founder Manuel Aráoz said on May 27 that he now views all DeFi as insecure. He cited attacker advantages and AI-powered vulnerability hunting. He also added that attackers need only one exploitable weakness. Meanwhile, Aave founder Stani Kulechov rejected Manuel’s view. He said DeFi infrastructure had improved through risk engines, audits, formal verification, bug bounties, oracles, monitoring, and circuit breakers. Meanwhile, OpenZeppelin stated that Aráoz no longer represented the firm. 

Trump Promises Future-Proof Crypto Rules

On May 28, President Donald Trump said his administration had saved the U.S. crypto industry. He criticized former SEC Chair Gary Gensler and earlier enforcement pressure against digital asset firms.

BREAKING: President Trump releases a statement on crypto.

“Trump will never let crypto down,” he says. pic.twitter.com/ZSRSnEIOdD

— The Kobeissi Letter (@KobeissiLetter) May 27, 2026

Trump also promised to codify a future-proof digital asset market structure. His statement presented clearer rules as a way to keep crypto builders and innovation inside the United States, which he called the crypto capital.

Paxos Wins SEC Clearing Agency Approval

Paxos said on May 28 that its subsidiary Paxos Securities Settlement Company received SEC clearing agency registration. The approval allowed it to offer clearing and settlement services for eligible U.S. securities. Paxos called the unit the first blockchain-native firm approved as a registered clearing agency. CEO Charles Cascarilla linked the approval to seven years of regulatory work, beginning with a 2019 no-action letter.

Bessent Rejects CBDC And Urges CLARITY

On May 28, Treasury Secretary Scott Bessent said the Trump administration will not support a central bank digital currency. He argued that CBDC policy raises tracking concerns. Bessent also urged Congress to pass the CLARITY Act. He said clear rules could bring offshore digital asset activity back into the United States. He framed domestic oversight as a market strength issue.

FBI Seizes Record Crypto In Scam Crackdown

The FBI seized more than $8 billion in crypto during a global crackdown on scam compounds on May 28. Officials linked the operation to organized crime networks. Authorities reportedly seized over 127,000 Bitcoin during Chen Zhi’s arrest. The crackdown also freed workers and produced hundreds of arrests. Officials said the scam networks targeted Americans and laundered stolen funds.

Korea Crypto Trading Volume Drops Sharply

South Korea’s compliant exchange volume dropped far below stock market turnover. In May, crypto volume reached only 8% of concurrent KOSPI trading volume. The five compliant exchanges led the reported figure. The decline followed last year’s October digital asset crash, with the ratio surging to 323% in December the previous year during the earlier crypto rally. 

South Korea’s Crypto Trading Activity Falls to One-Tenth of Stock Market Levels

According to Digital Asset, following the sharp decline in the digital asset market in October 2025 and the continued record highs of South Korea’s KOSPI index, trading activity in the country’s… pic.twitter.com/vKqZQh1XcJ

— Wu Blockchain (@WuBlockchain) May 27, 2026

CME Opens Bitcoin Futures to Full-Week Trading

CME Group moved Bitcoin futures and options to near-continuous trading on Globex on May 29. Trading now runs every day, with a one-hour maintenance break each Sunday. The shift removed the long-running CME gap linked to weekend closures. Therefore, traders lost a familiar arbitrage setup between Friday closes and Sunday reopenings.

Sui Mainnet Faces Two Consecutive Outages

Sui reported severe mainnet disruptions across two straight days. The network stopped processing user transactions after settlement issues affected block production and validator operations. Block explorers showed no new blocks for over an hour.

The team linked both outages to conflicts between Address Balances and gas billing logic in version 1.72. Meanwhile, Sui said a temporary fix carried a known low-probability risk. The team promised more updates after review.

Russia Plans Bank Crypto Exposure Limit

On May 29, Russia’s central bank proposed limiting banks’ own crypto asset exposure to 1% of group capital. The rule targeted bank balance-sheet risk, not customer assets held through banks. Moreover, the regulator planned a separate operational risk category for customer crypto. It proposed a 50% risk weight because of hacking threats, information security risks, volatility, and seizure concerns.

Vietnam Proposes Digital Assets as SME Collateral

Vietnam’s Ministry of Finance proposed allowing SMEs to use digital assets as loan collateral. The plan appeared in a draft revised SME support law on May 29. The proposal would expand acceptable collateral beyond real estate. It also covers future assets, intellectual property, intangible assets, and other lawful property rights. The ministry said many SMEs lack eligible traditional collateral.

NEW: Vietnam's Ministry of Finance has proposed letting SMEs pledge digital assets and intellectual property as collateral for bank loans.

SMEs are over 98% of the country's businesses. pic.twitter.com/8dHlvz1V66

— Tokens on Solana (@tokens) May 31, 2026

Jamie Dimon Criticizes Stablecoin Reward Rules

On May 29, JPMorgan Chase CEO Jamie Dimon criticized the current CLARITY Act draft. He said banks will fight the bill if stablecoin reward provisions remain unchanged, criticizing Coinbase’s lobbying. Dimon argued that crypto firms could pay deposit-like rewards without proper protections. He also raised concerns about AML, legal safeguards, and banking rules. Moreover, he rejected pressure from Coinbase’s policy campaign.

Korean Firms Pursue Crypto Exchange Stakes

South Korean financial and technology firms moved to buy stakes in local crypto exchanges on May 30. The activity followed the Won stablecoin policy, gaining momentum. Major banks and securities firms now want exchange exposure. Hana Bank plans to buy 6.55% of Dunamu. Meanwhile, Samsung firms, Hanwha, Mirae Asset, Korea Investment Securities, and OKX Ventures are pursuing separate exchange deals. Korbit and Coinone also feature in the acquisition push.

Digital Asset Investment Products Market Overview

Digital asset funds experienced a third week in a row of redemptions, with weekly outflows coming in at $1.67 billion, according to CoinShares’ latest report. The week was the second largest weekly correction since 23 January. The outflows amounted to $4.21 billion across three weeks, and assets under management slid to $141 billion.

📉 Crypto ETPs and ETFs saw outflows of US$1.7B last week.@Bitcoin saw US$1.4M of outflows, the largest weekly outflow of 2026. @ethereum saw US$257M of outflows. XRP (@Ripple) at US$20.3M, @HyperliquidX at US$10.8M and @NEARProtocol at US$7.6M are the only notable inflows.

🇺🇸… pic.twitter.com/CTLUjzrx3n

— CoinShares (@CoinSharesCo) June 1, 2026

Most withdrawals took place in the United States, where $1.63 billion left products for the week. Germany posted a negative of $25.7m as well, and smaller withdrawals occurred in Sweden and Hong Kong.

Bitcoin dominated the retreat, with $1.438 billion in outflows, its biggest weekly loss this year. As caution gripped the major assets, Ethereum shed $257 million. Altcoin demand, however, narrowed significantly as modest inflows were seen in XRP, Hyperliquid, and NEAR Protocol.

Bitcoin Price Performance

Bitcoin displayed a bearish outlook last week, dropping from highs of $77K to $72K. Following the broader market downturn, BTC was not left out, recording a decline of more than 5% during the week. At the time of this writing, BTC is exchanging hands around $73,060, with a market cap and trading volume of $1.45 trillion and $20 billion, respectively.

Looking at BTC’s weekly chart, the asset has lost its bullish momentum in its upward journey. The price has been trending downwards since May 11. Currently, BTC price is nearing the lower trendline of the ascending pattern, indicating that the bears have the upper hand at the moment. 

In addition, indicators such as the Relative Strength Index and Moving Average Convergence Index show a fading bullish momentum. The green bars on the histogram are fading away, with the MACD line dropping steadily, suggesting robust selling pressure. Meanwhile, the 14-day RSI is hovering around 40 levels, showing that the market is not yet overbought or oversold.

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