Cryptocurrencies

Democrats shift stance on GENIUS Act

Senators voted 66-32 to advance the GENIUS Act, a bill aimed at regulating stablecoins. Sixteen Democrats joined Republicans in backing the measure, reversing a previous block.

The legislation introduces the first formal rules for stablecoin issuers, a move seen as vital for consumer protection and financial clarity.

Bipartisan negotiations helped push the bill forward. A new amendment addresses key Democratic concerns, including tougher consumer safeguards and limits on stablecoin issuance by tech firms.

It also extends ethics rules to figures like Elon Musk and David Sacks, at least temporarily. Despite the uncertainty over whether the amendment will pass, Democrats agreed to support the bill either way.

The Senate had stalled the proposal two weeks earlier over demands for stronger national security provisions. While Republicans have yet to back the amendment, more Democrats are now expected to vote for the bill.

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Buterin suggests lightweight Ethereum nodes

Ethereum co-founder Vitalik Buterin has proposed a major update to make running a node more accessible to ordinary users. His idea aims to reduce the hardware and storage needed to run a full Ethereum node.

Instead of storing Ethereum’s full history—now over 1.3 terabytes—users would only keep data relevant to them and request older records when needed. The approach, similar to how library branches share books, would bring Ethereum nodes to standard devices, including smartphones.

Buterin says this shift reduces reliance on powerful cloud services and avoids centralised risks. The proposal arrives just ahead of Ethereum’s ambitious Pectra upgrade, which will lay the foundation for better scalability and decentralisation.

Meanwhile, other voices in the Ethereum space are pushing bold ideas. Researcher Dankrad Feist has proposed boosting the network’s gas limit by 100 times to handle up to 2,000 transactions per second.

Former developer Eric Connor believes Ethereum could help solve AI’s centralisation issues. But critics like Nic Carter warn that layer-2 networks and excessive token creation are diluting Ether’s value.

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New crypto rules may ban Tether trading in Russia

Russia’s new Central Bank regulations could effectively ban the trading of Tether (USDT) within the country’s crypto sandbox, experts have said. The rules, effective 26 May, target coins linked to ‘hostile issuers’ or at risk of being blocked or frozen.

The crypto sandbox, supervised by the Central Bank, allows Russian firms to use digital assets in international trade. Plans to expand the sandbox will let qualified investors trade on approved platforms, but only coins meeting strict criteria will be permitted.

While USDT trading appears under threat, stablecoins may still be used for cross-border payments and settlements.

Experts note that the rules’ broad definitions mean popular USD-pegged stablecoins, including Tether, likely will not comply. Tether’s requirements for Know-Your-Customer (KYC) checks enable it to block or freeze tokens at its discretion.

Such controls have already been seen in actions against Russian exchanges, highlighting potential complications for Russian crypto users.

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Hong Kong breaks up cross-border crypto laundering ring

Hong Kong authorities have busted a cross-border crypto laundering network that processed around HK$118 million (US$15 million) in illicit funds. The crackdown led to a dozen arrests amid efforts to stop people from monetising personal banking credentials.

Raids led by the Commercial Crime Bureau on Thursday detained nine men and three women aged between 20 and 40 across several districts. Officials seized HK$1.05 million in cash, over 560 bank cards, multiple devices, and financial documents.

Investigators found the network had recruited mainland Chinese citizens since mid-2023 to open fraudulent bank accounts in Hong Kong. These accounts were used to channel criminal proceeds from scams, with cash withdrawn and converted into cryptocurrency.

Two Hong Kong residents were arrested as primary organisers, alongside ten mainland Chinese nationals who served as account fronts. The operation reportedly used more than 550 domestic bank accounts to launder about HK$118 million.

So far, authorities have linked HK$10 million of the laundered money to 58 fraud cases. Victims reported losses totalling HK$43.2 million. The network operated from a Mong Kok apartment, where recruits stayed while processing fraudulent transfers.

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Coinbase hit by multiple data breach lawsuits

Coinbase faces multiple lawsuits after revealing a data breach involving bribed support agents leaking user information. At least six lawsuits were filed between 15 and 16 May, accusing the exchange of poor security and mishandling the breach.

One lawsuit filed in New York claims Coinbase failed to protect sensitive data of millions, including names, addresses, phone numbers, and partial Social Security numbers.

The complaint says the exchange’s response was slow and inadequate, putting users at risk of identity theft and fraud.

Other lawsuits allege Coinbase did not spend enough on security and demand compensation and stronger protections. One case asks the court to order Coinbase to delete sensitive data and hire third-party auditors.

Coinbase declined to comment on the lawsuits but confirmed it refused a $20 million ransom. It plans to reimburse users who lost crypto to phishing scams related to the breach. The company also fired involved customer support agents.

Following the breach announcement, Coinbase shares fell 7% but rebounded quickly, closing higher on 16 May.

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UK to enforce strict crypto transaction reporting

Crypto firms operating in the United Kingdom will be required to report detailed customer transaction data from 1 January 2026. The move is part of the government’s wider plan to improve tax transparency in the crypto sector by aligning with international reporting standards.

Firms must collect and submit information on each transaction, including the user’s name, address, tax ID, the crypto used, and the amount transferred. Transactions involving companies, trusts, and charities must also be reported.

Penalties of up to £300 per user may apply for non-compliance or incorrect reporting.

The measures are part of the UK’s adoption of the OECD’s Cryptoasset Reporting Framework, aiming to support innovation while reducing fraud and abuse. Authorities have urged firms to begin gathering data now, although full guidance will be issued later.

While the UK’s approach focuses on integrating crypto into existing regulations, it differs from the EU’s MiCA rules. Unlike the EU, the UK will not require foreign stablecoin issuers to register or limit their transaction volumes.

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Coinbase hit by breach and SEC probe ahead of S&P 500 entry

Cryptocurrency exchange Coinbase has disclosed a potential financial impact of $180 million to $400 million following a cyberattack that compromised customer data, according to a regulatory filing on Thursday.

The company said it received an email from an unidentified threat actor on Sunday, claiming to possess internal documents and account data for a limited number of customers.

Although hackers gained access to personal information such as names, addresses, and email addresses, Coinbase confirmed that no login credentials or passwords were compromised.

Coinbase stated it would reimburse users who were deceived into transferring funds to the attackers. It also revealed that multiple contractors and support staff outside the US had provided information to the hackers. Those involved have been terminated, the company said.

In parallel, the US Securities and Exchange Commission (SEC) is reportedly investigating whether Coinbase previously misrepresented its verified user figures.

Two sources familiar with the matter told Reuters that the SEC inquiry is ongoing, though it does not focus on know-your-customer (KYC) compliance or Bank Secrecy Act obligations. Coinbase has denied any such investigation into its compliance practices.

The SEC declined to comment. Coinbase’s chief legal officer, Paul Grewal, characterised the probe as a continuation of a past investigation into a user metric the company stopped reporting over two years ago. He said Coinbase is cooperating with the SEC but believes the inquiry should be closed.

The news comes ahead of Coinbase’s upcoming addition to the S&P 500 index, potentially overshadowing what had been viewed as a major milestone for the industry. Shares fell 7.2% following the disclosure.

Coinbase has rejected a $20 million ransom demand from the attackers and is cooperating with law enforcement. It has also offered a $20 million reward for information leading to the identification of the hackers.

The firm is opening a new US-based support hub and taking further measures to strengthen its cybersecurity framework.

The cyberattack adds to broader concerns about digital asset platform vulnerabilities. In 2024, hacks have resulted in over $2.2 billion in stolen funds, according to Chainalysis. Bybit alone reported a $1.5 billion theft in February, the largest on record.

Coinbase is also facing a lawsuit filed in the Southern District of New York, alleging the company failed to protect personal data belonging to millions of current and former customers.

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Tron surpasses Ethereum in USDT supply

Tether has minted $1 billion in USDT on the Tron blockchain, pushing its authorised supply beyond Ethereum’s. The move signals a new phase in the competition between the two networks for stablecoin dominance.

According to Tether’s transparency data, Tron’s authorised USDT now exceeds $74.7 billion, overtaking Ethereum’s $74.5 billion. In terms of actual circulating supply, Tron also leads with $73.6 billion compared to Ethereum’s $71.8 billion.

Tether’s CEO Paolo Ardoino explained that such mints help maintain inventory and meet future issuance demands. By pre-minting tokens, the firm ensures liquidity for swaps and transfers across blockchains.

As the stablecoin market grows, networks like Solana and Avalanche continue to trail behind, with authorised supplies of $2.3 billion and $1.8 billion respectively.

Tether now commands 61% of the stablecoin market, with $150 billion in circulation. Rival Circle holds 24.6%, maintaining $60.4 billion in stablecoins across blockchains.

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JP Morgan backs Bitcoin’s upside over gold

JP Morgan analysts believe Bitcoin holds more upside potential than gold for the remainder of 2025, citing a range of crypto-specific catalysts. The bank highlighted corporate treasury allocations, state crypto laws, and a growing derivatives market as key growth drivers.

Bitcoin recently surged past $104,500—just shy of its January peak—leading a broader return to risk assets. While some still view it as a safe-haven investment, JP Morgan analysts stressed that Bitcoin continues to behave more like a risk-on asset, closely tracking equities.

The investment bank also highlighted major acquisitions signalling crypto’s evolution. Coinbase’s Deribit takeover, Kraken’s acquisition of NinjaTrader, and Gemini’s new EU derivatives licence show growing regulatory oversight and institutional interest.

Analysts expect this will boost confidence and participation from traditional investors.

Despite gold climbing amid tariff uncertainty with China, Bitcoin has consistently outperformed over the past year. ETF inflows reflect this trend, with Bitcoin ETFs now outpacing gold alternatives as interest shifts to digital assets.

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Ukraine plans new national Bitcoin reserve

Ukrainian authorities are preparing to establish a National Bitcoin Reserve alongside upcoming local crypto regulations. Lawmaker Yaroslav Zhelezniak is finalising draft legislation to support the initiative, signalling a major shift in adoption.

The move echoes recent efforts by the US to create a similar reserve and coincides with expectations of a price rally.

Efforts to regulate digital assets have progressed throughout 2025, with the Finance, Tax and Customs Policy Committee approving a draft bill earlier this year. Although the bill was later withdrawn due to challenges, discussions of a Strategic Bitcoin Reserve mark significant progress.

Debates continue over which agency would oversee crypto enforcement, including proposals for a new regulatory body or existing institutions like the National Bank.

Binance and other major crypto firms have welcomed the initiative. Kiril Khomyakov, Head of Binance in Central Asia, CEE, and Africa, highlighted the need for legislative changes and praised the potential for clearer crypto regulations in Ukraine.

The growing global support for digital assets, including from the US, has boosted institutional interest and market optimism.

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