Crypto Weekly Market Wrap May 18 – Institutional Expansion, Policy Progress, and Fund Outflows

The crypto market saw a busy week of policy progress, institutional expansion, and sharp price pressure. The CLARITY Act moved closer to a Senate vote, major banks advanced tokenized products, and stablecoin plans expanded across regions. However, overall market weakness and $1.07 billion in digital asset outflows showed risk appetite remained fragile. In the section below, we will discuss the major events that made headlines last week.

U.S. Crypto Market Bill Advances Toward Senate Vote

The CLARITY Act cleared the Senate Banking Committee in a 15-9 vote on May 14. According to Eleanor Terrett, Democratic Senators Ruben Gallego and Angela Alsobrooks supported the bill. Therefore, the crypto market structure proposal now moves toward a full Senate vote after months of negotiations.

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Before the vote, committee members submitted more than 100 amendments. Those proposals focused on investor protection, stablecoin rules, anti-money-laundering controls, and illicit-finance safeguards. However, disagreements remained over several details, despite bipartisan talks behind closed doors.

Bank of England Reconsiders Stablecoin Limits

The Bank of England is reviewing parts of its proposed sterling stablecoin framework. Deputy Governor Sarah Breeden said on May 14 that officials are exploring alternatives to planned holding caps. As a result, the central bank may soften restrictions that drew criticism from the digital asset industry.

JUST IN: 🇬🇧 Bank of England to scale back plans for strict stablecoin rules following crypto industry pressure.

— Watcher.Guru (@WatcherGuru) May 14, 2026

The earlier consultation proposed a £20,000 limit for individuals. It also set a corporate cap near $13.5 million. Moreover, the plan required at least 40% of reserves to stay interest-free at the Bank of England. Industry groups warned that those rules could weaken adoption.

JPMorgan Plans Another Ethereum Tokenized Fund

On May 12, JPMorgan Chase announced the launch of JLTXX on Ethereum. The OnChain Liquidity-Token Money Market Fund will invest in U.S. Treasury securities. It will also hold overnight repurchase agreements backed by Treasuries or cash, according to the documents.

The fund plans to meet reserve asset requirements for stablecoin issuers under the GENIUS Act. Additionally, JPMorgan’s Kinexys Digital Assets will handle blockchain-related administration. The launch follows MONY, the bank’s earlier tokenized money market fund issued on Ethereum last year.

Coinbase Expands USDC Role on Hyperliquid

Coinbase announced deeper cooperation with Hyperliquid through the USDC treasury structure on Thursday. The company will become the official treasury issuer for USDC as the Aligned Quoting Asset. Therefore, Hyperliquid will shift part of its stablecoin layer toward Coinbase-backed infrastructure.

Native Markets also agreed to grant Coinbase the rights to purchase USDH-brand assets. Meanwhile, the USDH market will gradually close. Users can still convert USDH into USDC or fiat without fees through the Native Markets dashboard during the transition.

Ondo and xStocks Tokenized Markets Grow

Ondo tokenized stocks crossed $1 billion in market capitalization. The products cover BNB Chain, Ethereum, Solana, and HyperEVM. Furthermore, total trading volume exceeded $18 billion, while minting and redemption activity totaled $5.6 billion.

Ondo’s native token rose more than 60% over the past month. That move lifted its market capitalization above $2 billion. Meanwhile, xStock’s cumulative tokenized stock volume exceeded $30 billion. Its AUM stood at $424 million, with more than 120,000 total holders.

Kelp DAO Restores Key rsETH Functions

Kelp DAO restored rsETH withdrawals, cross-chain bridging, and asset claim functions on May 15. The restart formed part of a coordinated recovery plan. Additionally, Kelp said it would update exchange rates and EigenLayer-related claim data after the suspension period.

rsETH protocol operations have fully resumed.

– The exchange rate was updated at 16:45 CET today, reflecting all staking rewards accrued during the pause.
– EIGEN claims are now distributable to rsETH holders for the full pause window.
– Deposits and withdrawals are live on…

— Kelp (@KelpDAO) May 15, 2026

The update aimed to reflect staking rewards earned by rsETH holders during the interruption. Kelp also said deposit functions would reopen after a short stabilization period. Moreover, Aave and Kelp will continue to replenish the remaining rsETH assets in locked pools over two weeks.

Russia Moves Toward Broader Crypto Rules

On May 15, Russia’s State Duma Financial Market Committee submitted second-reading amendments for a cryptocurrency legalization bill. The proposals went to the Ministry of Finance. Notably, they include legal cash-based P2P digital currency transactions between individuals, with a proposed single-transaction limit of 600,000 rubles.

The amendments also allow withdrawals from digital custodians to non-custodial wallets. Additionally, they distinguish cryptocurrencies from stablecoins such as USDT and USDC. The proposal expands legally purchasable assets to include native tokens used for gas fees on networks such as TRON and Solana.

Moscow Exchange Studies Around-the-Clock Crypto Trading

Moscow Exchange explored cryptocurrency trading plans with broker-dealers. According to the report on May 14, the exchange is also exploring a 24/7 trading model, although clearing arrangements remain important. Therefore, its crypto strategy still depends on operational and settlement planning.

Reports said the exchange is discussing dedicated crypto accounts. It is also testing crypto deposits and withdrawals with several broker-dealers. Meanwhile, Moscow Exchange said it is developing solutions for the cryptocurrency market as Russian lawmakers advance digital currency legislation.

Japan Builds New Crypto Intermediary Framework

Japan’s Financial Services Agency held an online briefing on May 14 on crypto-asset intermediary registration. The session covered the new Electronic Payment Instrument and Crypto-Asset Service Intermediary Business. The revised Payment Services Act will bring the framework into force in early June 2026.

The new system targets firms commissioned by exchanges or stablecoin operators. These firms may act as intermediaries for purchases, sales, and exchanges. However, they cannot custody user assets. As a result, lighter requirements may attract gaming, e-commerce, and referral-based service providers.

Vietnam Prepares Official Crypto Market Launch

Vietnam could launch the first activities of its official crypto-asset market in the third quarter. Deputy Finance Minister Nguyễn Đức Chi disclosed the update at the Digital Trust in Finance 2026 forum. The planned market will operate under state supervision.

据越南财经媒体报道，越南财政部副部长 Nguyễn Đức Chi 在 “Digital Trust in Finance 2026” 论坛上披露，越南官方加密资产市场最早将在第三季度开展首批活动，相关服务提供单位将由国家机关管理，以确保市场安全和透明；越南财政部已推动发布第 05…

— 吴说区块链 (@wublockchain12) May 13, 2026

The Ministry of Finance has promoted Resolution No. 05 as Vietnam’s first legal framework for crypto assets. In addition, the Ministry of Public Security and the State Bank of Vietnam helped approve five entities to prepare related services.

MetaPlanet Reports Sharp First-Quarter Growth

MetaPlanet CEO Simon Gerovich disclosed the company’s first-quarter 2026 financial results through X on May 13. The firm posted net sales of 3.08 billion yen, or about $19.52 million. That represented a year-on-year increase of 251%, according to the update.

Operating profit reached 2.27 billion yen, or about $14.39 million. The figure rose 283% from the prior year. Meanwhile, MetaPlanet held 40,177 BTC at quarter-end. The company kept its full-year forecast unchanged, including projected net sales of 16 billion yen.

THORChain Opens Recovery After Exploit

THORChain faced a $10.8 million multi-chain exploit that forced the protocol to halt operations on 15 May. The incident froze cross-chain DeFi activity for hours while the team reviewed the attack vector. Later, investigators pointed to a suspected malicious node and GG20 TSS vulnerability.

Chainalysis traced the hacker’s earlier trail through Monero and Hyperliquid. THORChain later said no user funds were ultimately lost. However, the foundation opened a recovery portal on May 16, allowing affected users to check payouts, revoke approvals, and file refund claims.

Hyperliquid Gains After ETF Launches

Hyperliquid recorded a strong weekly move as two U.S. ETFs launched on Nasdaq. The token climbed more than 20% after 21Shares introduced THYP with staking exposure. Moreover, Bitwise launched its own Hyperliquid ETF with staking features.

The close timing marked a notable moment for DeFi-linked funds. Two competing ETFs tied to the same asset launched within days. As a result, asset managers signaled rising interest in on-chain derivatives demand and Hyperliquid’s trading ecosystem.

MARA Reports Loss And Treasury Shift

Marathon Digital reported a $1.2 billion first-quarter loss. The miner also sold 15,100 BTC from its treasury. Moreover, the company signaled a strategic pivot toward AI computing.

@MARA Q1 2026 Highlights:
– The Starwood strategic partnership moved from announcement to execution during Q1 2026, with permitting and site preparation advancing across MARA’s portfolio.
– Approximately 90% of MARA’s non-hosted capacity is being evaluated for conversion into AI… https://t.co/Yz0G822r91

— Robert Samuels (@RobSamuelsIR) May 11, 2026

The sale marked a major shift for a company linked to accumulation. In addition, the move showed pressure across mining economics after the halving. MARA’s update placed diversification beside Bitcoin treasury management.

Warren Presses SEC Over WLFI Concerns

U.S. Senator Elizabeth Warren sent a letter to the U.S. Securities and Exchange Commission to investigate World Liberty Financial. She expressed concerns that the firm could have misled investors and violated securities laws. The controversy involved WLFI tokens, which provided collateral for a $75 million loan. The letter was sent by Warren to the SEC Chairman on May 14 after the Senate Banking Committee marked up the CLARITY Act. Moreover, Warren linked the request to broader calls for crypto conflict-of-interest provisions

Ethereum Foundation Updates Glamsterdam Progress

The Ethereum Foundation released its Protocol Cluster May 2026 update on May 11. Developers advanced testing for the Glamsterdam upgrade during an interop event in Svalbard, Norway. Milestones included a 200-million gas limit floor target.

The update also covered multi-client devnet testing for ePBS and finalizing EIP-8037. Meanwhile, Will Corcoran, Kev Wedderburn, and Fredrik became new cluster leads. Current priorities include Glamsterdam, Hegotá, and Strawmap roadmap work.

Japan Brokerages Prepare Crypto Investment Trusts Market

Japan’s major brokerages are preparing crypto investment trusts for retail investors. According to the report on Sunday, SBI Securities and Rakuten Securities have started developing products in-house. Their planned funds will focus on liquid assets, including Bitcoin and Ethereum.

Japan’s SBI, Rakuten and Nomura reportedly line up crypto investment trusts. The move could broaden regulated access to digital assets for local investors as traditional finance firms expand crypto offerings. #crypto #Japan #TradFi #Bitcoin #Ethereum #CryptoNews

— Green Candle Gazette (@GCandleGazette) May 17, 2026

SBI plans to sell products developed by SBI Global Asset Management. Rakuten Securities is working with Rakuten Investment Management. Meanwhile, Nomura, Daiwa, SMBC Group, and Asset Management One are studying possible products before Japan finalizes fund rules.

Strategy Moves to Repurchase Convertible Notes

On May 15, Strategy agreed to repurchase about $1.5 billion in principal amount of its 2029 convertible notes. However, the company expects to pay about $1.38 billion in cash. After the settlement, it plans to cancel the repurchased notes. The transaction covers half of the 0% Convertible Senior Notes due 2029. The company may fund the deal through cash reserves, securities sales, or Bitcoin sales if needed. Therefore, debt management now sits beside its Bitcoin accumulation strategy.

CFTC Grants Event Contract Reporting Relief Measures

The CFTC issued no-action relief for prediction market platforms on May 12. The letter eased selected swap data reporting and recordkeeping duties for fully collateralized event contracts. It also covered exchanges, clearing organizations, and participants meeting the stated conditions.

The relief allows certain event contracts to use reporting formats similar to futures and options. However, the CFTC excluded contracts linked to terrorism, war, and some political activities. Additionally, new exchanges can request inclusion under the same framework.

Schwab Starts Direct Bitcoin and Ether Trading

Charles Schwab began rolling out direct Bitcoin and Ether trading for eligible U.S. retail clients on May 12. The launch expands its crypto services beyond ETFs, futures contracts, and digital asset funds. Clients can access trading through its website, app, and Thinkorswim.

Schwab Crypto™ accounts are now being rolled out to retail clients.

Starting today, the first group of clients can trade Bitcoin and Ethereum at Schwab, right alongside their other investments.

Sign up for updates and a chance to get early access: https://t.co/ELe1HWHS8Y pic.twitter.com/HJKbPUD7Ob

— Charles Schwab Corp (@CharlesSchwab) May 12, 2026

Schwab requires users to open separate Schwab Crypto accounts. Charles Schwab Premier Bank holds custody. Meanwhile, Paxos handles execution and sub-custody. The platform charges a 75-basis-point transaction fee.

BitMine Builds Largest Corporate Ether Treasury

BitMine Immersion Technologies increased its Ethereum holdings to 5.21 million ETH. On May 11, the company said total crypto, cash, and moonshot holdings reached $13.4 billion. At $2,366 per ETH, the treasury exceeded $12.3 billion. BitMine said its ETH position equals 4.31% of Ethereum’s total supply. The company reached 86% of its 5% target. Additionally, it staked 4,712,917 ETH and reported $319 million in annualized staking revenue.

Digital Asset Investment Products Market Overview

Digital asset outflows rose to $1.07 billion last week after recording six consecutive weeks of inflows. The pullback was the third-largest weekly decline of 2026. Caution prevailed on the back of Iran-linked risk, with total assets under management slipping to $157 billion.

Crypto ETPs and ETFs saw outflows of US$1.1B last week.@Bitcoin saw US$982M of outflows. @ethereum saw outflows of US$249M, its largest since 30th January. Altcoins held up notably well. XRP (@Ripple) recorded US$67.6M of inflows and @solana US$55.1M, both accelerating on… pic.twitter.com/EJjwcZqzMu

— CoinShares (@CoinSharesCo) May 18, 2026

Bitcoin led the decline with $982 million in outflows, bringing year-to-date inflows to $3.9 billion. Ethereum followed with $249 million in outflows, its biggest weekly drop since January 30. Meanwhile, blockchain equity ETFs declined by $133 million.

However, altcoin demand remained firm. XRP attracted $67.6 million, while Solana added $55.1 million. Ton, Sui, Ondo, Chainlink, and Dogecoin also recorded inflows. In Europe, Switzerland and Germany posted gains, while the US recorded $1.14 billion in outflows.

Bitcoin Price Performance

Bitcoin witnessed a rocky performance last week as the price dropped below the $80 key level. BTC dropped from highs of 82K to $78K, resulting in a decline of more than 4%. Currently, the price is hovering around $77,648 with a market cap of $1.55 trillion.

Looking at BTC’s structure on the weekly chart, the asset has formed a bearish reversal after facing stiff rejection at the $82K region. BTC has started to print red candlesticks, indicating exhaustion from the recent rally.

In addition, indicators such as the Relative Strength Index and Moving Average Convergence Divergence signal weakness in the price movement. The 14-day RSI has dropped to 46 levels in the neutral region, suggesting a cooling of the asset’s upward rally. Moreover, the green bars on the histogram are fading away, indicating increased selling pressure. 

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