01/06/2026
Weekly Crypto & Blockchain Update: May 25–31
Market snapshot Bitcoin: $72,861 | Ethereum: $1,982 | Total stablecoin market cap: ~$320 B
Regulatory developments
The UK added HTX and a Russian ruble-backed stablecoin to its sanctions list, forcing all UK-regulated firms to freeze related assets.
On May 26, the UK designated 18 entities including HTX (formerly Huobi) and the A7A5 ruble-pegged stablecoin, applying banking-style compliance obligations to crypto exchanges for the first time under UK sanctions law. A7A5 logged $93 billion in trading volume in its first year and was partially backed by Russia's state-owned Promsvyazbank.
Trump publicly backed the Clarity Act while advocacy groups intensified pressure on the Senate for a floor vote.
During the week of May 26, Trump posted on Truth Social pledging to codify a "future-proof" digital asset market, and the Digital Chamber of Commerce issued a public call to action urging constituents to push senators for a floor vote.
The bill cleared the Senate Banking Committee 15-9 on May 14 but needs 60 votes to advance on the floor, with ethics provisions around Trump's personal crypto holdings still a sticking point for some Democrats.
Paxos became the first blockchain-native firm to receive SEC registration as a clearing agency.
On May 29, Paxos Securities Settlement Company received SEC clearing agency registration, seven years after the company began engaging regulators on blockchain-based settlement. The approval covers clearing and settlement of US equities on-chain.
The SEC has now formally recognized blockchain as a viable settlement layer for equities, which changes the risk calculus for institutions still sitting on the sidelines of digital asset integration.
Investments, partnerships, launches, & acquisitions
SoFi launched SoFiUSD on Ethereum and Solana, making it the first US nationally chartered bank to issue a stablecoin directly to retail customers. [CoinDesk] [The Block]
On May 27, SoFi's 15 million members gained the ability to hold, buy, sell, and convert SoFiUSD 1:1 in the app. The stablecoin is issued by SoFi Bank, meaning it carries FDIC-backed institutional legitimacy that no crypto-native issuer can claim.
FalconX confidentially filed an S-1 with the SEC, becoming one of the most prominent crypto-native firms to formally pursue a US public listing.
On May 28, FalconX, a crypto prime broker last valued at $8 billion in 2022, hired Cantor Fitzgerald and filed a draft S-1. The IPO is not expected until late 2026, and the confidential filing doesn't commit the company to listing.
But the move signals that institutional crypto infrastructure businesses see viable public markets window this year, which is consistent with Jefferies' projection that crypto IPOs could generate a $1 trillion public market within five years.
Crypto security
TrapDoor, a supply chain attack campaign, planted 34+ malicious packages across npm, PyPI, and Crates.io targeting crypto developer environments. [CoinDesk]
Security firm Socket identified the campaign on May 23 and published its findings during the week of May 25. The packages disguised themselves as developer utilities and used install hooks to immediately exfiltrate SSH keys, wallet keystores for Solana, Sui, and Aptos, AWS credentials, GitHub tokens, and browser data.
More industry/market updates
US Bitcoin ETFs saw $2.8 billion in net outflows across nine consecutive trading days, the longest withdrawal streak since the products launched.
BlackRock's iShares Bitcoin Trust shed $528 million in a single day on May 28, its second-largest single-day outflow on record. The streak ran from approximately May 15 through May 28. Macro uncertainty and geopolitical tensions appear to be the driver.
The stablecoin market cap held near $323B through the same period, suggesting capital is rotating out of BTC exposure but staying on-chain.
Swapin's Take
TLDR; 3 highlights of the week.
One, SoFi made bank-issued stablecoins real for retail, shifting the conversation from "crypto native" to "bank native".
Two, the UK put crypto exchanges on notice by sanctioning HTX under banking-style rules, the first time they've done this.
Three, Paxos got SEC clearance as a registered clearing agency, which means blockchain settlement of US equities is no longer theoretical. Meanwhile, the Bitcoin ETF streak of $2.8B in outflows in nine days shows institutional sentiment is cautious even as stablecoin supply holds steady.