In the fifth week of May 2025, the virtual asset market entered a breather after hitting an all-time high. As of 4 p.m. on the 30th, Bitcoin recorded $105,580, down 5.5% from the previous week, while Ethereum was at $2,632, down 1.2%. Despite the overall price correction, SPX6900 (SPX, +23.93%), Quant (QNT, +16.02%), and Form (FORM, +13.74%) showed strength, highlighting thematic altcoins individually. However, overall, it was a week where profit-taking and caution over macro risks pressured the market.
During the week, key variables in the financial markets included the U.S. Federal Open Market Committee (FOMC) May minutes and the tariff policy of the Trump administration. The minutes warned that inflation is slowing more slowly than expected, along with concerns over stagflation before the full effects of the tariff increases take hold. Additionally, the reciprocal tariffs imposed by the Trump administration on countries worldwide faced a constitutional ruling by the U.S. Federal International Trade Court and were at risk of suspension, prompting the White House to immediately appeal and enter into legal disputes.
Nevertheless, there is a positive trend in terms of regulation and infrastructure. The U.S. Securities and Exchange Commission (SEC) clarified its stance that some staking services do not fall under the category of securities, enhancing regulatory clarity, and its long-standing litigation with Binance has also concluded.
◇ U.S. SEC: “PoS staking is not securities”… Will this open the path for staking products within the institutional framework?
In a statement issued on May 29, the U.S. Securities and Exchange Commission's Division of Corporation Finance stated that 'protocol staking' on public blockchains does not constitute an investment contract under securities law. The SEC specified that this position applies to asset deposits made in specific Proof of Stake (PoS) networks, delegated staking performed by third-party node operators or custodians, and other ancillary services. Consequently, it was interpreted that participants in staking and service providers can operate without separate securities registration obligations.
This statement marks the first official position that potentially opens the door for staking services in the U.S., paving the way for cryptocurrency exchange-traded funds (ETFs) to include staking features. Indeed, Rebecca Letich, chief legal officer at Jito Labs, analyzed that 'a path has opened for staking features to be included in ETF products.'
The SEC previously stated in March that Proof of Work (PoW) mining activities are not considered securities, and it is interpreted that this is a follow-up measure to provide clear standards for staking. However, some Commissioners have criticized this statement as still lacking legal interpretation, leading to a focus on whether detailed guidelines for staking-related regulations will be established in the future.
◇ U.S. SEC withdraws lawsuit against Binance and Changpeng Zhao… Accelerating the institutionalization of virtual assets in the U.S.
The SEC has officially withdrawn the civil lawsuit it filed against Binance, the world's largest virtual asset exchange, and founder Changpeng Zhao. According to a joint termination agreement submitted to the federal district court in Washington D.C., the SEC and Binance agreed to conclude the 13 allegations of securities law violations filed in 2023 'with prejudice,' meaning they cannot be refiled. This agreement comes nearly two years after the SEC began enforcement actions against Zhao and Binance for operating without registration in the U.S., manipulating transaction volumes, and mixing customer assets.
This decision is evaluated as a significant turning point that indicates the acceleration of the institutionalization of virtual assets in the U.S., going beyond mere case closure. Recently, the Trump administration and the new SEC leadership have consistently shown soft policies such as easing stablecoin regulations and abolishing SAB 121, while the SEC is shifting from an enforcement-centric strategy to a more roundtable and regulatory reform-focused approach.
Hwang Hyo-jun, a researcher at Xangle, noted, 'The FOMC minutes and tariff uncertainties acted as short-term adjustment factors, but regulatory restructuring and global infrastructure expansion are positive trends in the medium to long term,' adding, 'While the overall market has temporarily taken a wait-and-see approach, the structural demand base remains robust.'
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providing essential operational solutions based on on-chain data and trust-based community building for companies and foundations adopting Web3. It operates the crypto data intelligence platform Xangle, and the Xangle research team is creating content to showcase trends in the virtual asset investment industry based on global virtual asset information and data.