May 23, 2025 12:05

Can ChatGPT-powered AI agents really trade crypto for you?

Key takeaways

• ChatGPT-powered AI agents automate trading tasks using natural language prompts and API integrations, improving speed and consistency.

• Successes occur when ChatGPT is used as a support tool, not a fully autonomous trading system.

• Failures happen when traders over-rely on ChatGPT without real-time data, proper risk management or manual oversight.

• Regulatory focus on AI in trading is increasing, with new frameworks emerging to ensure transparency, accountability and compliance.

What if a crypto trader didn’t need to constantly check charts, worry about emotions, or stay up all night watching for sudden price swings? What if those tasks could be handled by an intelligent agent that understands instructions in plain English — and reacts within milliseconds? That’s where ChatGPT-powered AI agents come in.

These tools combine natural language processing with real-time trading logic to automate decision-making in one of the world’s most volatile markets. From rebalancing portfolios to reacting to market sentiment, ChatGPT is being adapted to act as a trading assistant, risk manager and market analyst — all rolled into one. 

But can it truly match or even outperform human intuition? This article explores how far these agents have come, where they shine and where they still fall short.

How ChatGPT-powered AI agents operate in cryptocurrency markets

ChatGPT-powered AI agents are changing how people interact with crypto markets. These tools combine ChatGPT’s language abilities with external trading tools and APIs to help users monitor prices, understand trends and even place trades automatically. Instead of just reacting to charts or numbers, ChatGPT can understand plain language commands like “Buy Ethereum if the price drops below $2,000” or “Sell Bitcoin if RSI goes above 70.”

These AI trading assistants can work with major platforms like Coinbase, Kraken, OKX and other centralized or decentralized exchanges and can also tap into decentralized finance (DeFi) tools and smart contracts. With the right setup, ChatGPT can help automate trading strategies based on both technical data and market news.

Success stories vs. failures in ChatGPT-powered crypto trading

Some traders have used ChatGPT to assist in automating parts of their crypto trading processes, particularly for strategy generation and sentiment analysis. For example, a user shared on Reddit that they used a ChatGPT-based AI agent for technical analysis on Ether (ETH), feeding it four-hour and daily chart screenshots. By interpreting market sentiment, support and resistance zones, and other indicators, they managed to make $6,500 in profits.

Similarly, in the broader crypto sector, ChatGPT has been applied to support project development activities such as drafting white papers and marketing content. A notable example is the launch of the “TURBO” memecoin, which reportedly reached a market capitalization of over $50 million in 2024. In this case, ChatGPT was used to streamline documentation and communication rather than manage trading activity, illustrating its usefulness as a support tool in crypto-related initiatives.

However, limitations are evident when ChatGPT is applied beyond its core design. While ChatGPT could suggest a trading portfolio and explain its reasoning clearly, it lacks access to real-time market data and couldn’t respond to sudden volatility. In one instance, ChatGPT was allocated $100 across multiple tokens but failed to actively manage the portfolio as prices fluctuated. This resulted in missed opportunities and underperformance compared to dynamic algorithmic strategies.

Individual experiences reinforce these observations. A Redditor exposed a scam where a YouTuber promoted a “ChatGPT trading bot” tutorial that led users to deploy malicious smart contracts. The contracts, generated using ChatGPT and passed off as safe, were designed to drain user wallets once funded. Victims collectively lost $17,240 in ETH, highlighting the danger of blindly trusting AI-generated code without proper auditing.

Even when asked, “If I use ChatGPT to build an AI agent for crypto trading, can I become a millionaire?” ChatGPT responded with a realistic outlook — acknowledging that while it’s possible, success depends on having a profitable strategy, disciplined risk management, and the ability to scale effectively.

Here is ChatGPT’s response:

These cases suggest that while ChatGPT can support certain elements of the trading process, it should not be treated as a standalone solution for autonomous crypto trading.

AI in crypto trading: Key benefits and limitations

AI tools like ChatGPT are increasingly being integrated into crypto trading workflows to improve speed, accuracy and efficiency. While they offer important advantages, they also carry specific limitations that traders must actively manage. Below are the main benefits and challenges:

Key benefits of using AI for crypto trading

• AI bots can execute trades in milliseconds, crucial for capturing opportunities in fast-moving crypto markets.

• Bots follow pre-programmed rules precisely, eliminating emotional biases that often affect human traders.

• Crypto markets are always open, and AI bots can monitor and act around the clock without interruption.

• A single bot can manage multiple trading pairs, exchanges and strategies simultaneously.

• ChatGPT can understand specific prompts like “Rebalance every Monday” or “Set stop-loss at 5%,” allowing flexible automation.

Limitations of ChatGPT in cryptocurrency trading

• ChatGPT does not access live market data unless specifically integrated with external APIs (e.g., TradingView, CoinMarketCap or exchange websockets).

• Instructions must be clear and unambiguous; ChatGPT may misinterpret vague or complex commands.

• Improperly secured API keys or lack of two-factor authentication (2FA) can expose trading accounts to unauthorized access.

• ChatGPT’s cloud-based infrastructure can introduce latency, which could impact performance during highly volatile periods.

• ChatGPT does not monitor regional compliance rules; users must manually enforce trading limits based on local regulations.

Ethical and regulatory implications of AI in crypto trading

As AI becomes more integrated into trading systems, it raises significant ethical and regulatory concerns that stakeholders across the financial sector are beginning to address.

• Accountability: If an AI agent executes a harmful or unlawful trade, questions arise around legal responsibility. It remains unclear in many jurisdictions whether liability falls primarily on the developer, the trader using the AI system or the platform facilitating the transactions.

• Market manipulation risks: Autonomous AI bots could unintentionally engage in activities such as spoofing (placing and canceling fake orders to mislead the market) or wash trading (creating artificial volume), especially if not properly programmed with compliance safeguards.

• Regulatory oversight: Financial authorities, including the US Securities and Exchange Commission and the European Securities and Markets Authority, are actively studying the implications of AI and algorithmic trading. These agencies have recognized that traditional trading regulations may not fully account for autonomous decision-making by AI systems.

• Policy developments: In January 2024, the European Commission released updates to its Digital Finance Strategy, which included references to AI-based financial services. While not yet finalized, these draft regulations under the broader Digital Finance Package signal a move toward stricter compliance expectations for firms deploying AI in financial markets.

Meanwhile, ethical crypto platforms are beginning to voluntarily disclose the use of trading bots in their systems. In parallel, open-source communities are advocating for clearer audit trails, improved model transparency and the establishment of ethical guidelines for AI applications in finance to ensure accountability and fairness.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

May 23, 2025 12:05

Crypto travelers bring 3x greater lifetime value than fiat users

Travelers using cryptocurrency for booking arrangements spend more than twice as much as regular travelers using fiat money, according to a joint report from Binance Pay and crypto travel platform Travala shared with Cointelegraph.

Crypto-based bookings on Travala reached $80 million in 2024, up from $45 million the year before. Crypto travelers are also outspending their fiat counterparts, with an average booking value of  $1,211 per transaction, over 2.5 times more than fiat users who spend $469.

Additionally, the report said crypto users were three times more valuable over their lifetime due to longer stays and higher repeat bookings, with crypto travelers 57% more likely to make a repeat hotel purchase.

Source: Binance Pay, Travala

Juan Otero, CEO of Travala, attributed these travel preferences to the flexible nature of Web3 jobs:

“Many also work in the digital asset industry or have flexible, remote work lifestyles, which makes them more likely to travel frequently and stay in one place for longer while seeking out destinations that support seamless, global payments.”

Crypto-based transactions have become more common in the travel sector and beyond. Airlines that have integrated digital currencies into their booking systems have seen a 40% boost in bookings, with travel and hospitality representing 14% of all crypto transactions in 2024, according to a Feb. 21 report by Triple-A.

Related: Crypto spending will grow, but fiat isn’t going anywhere: Mercuryo CEO

The main benefit of using crypto for travel is its borderless, global utility, Jonathan Lim, the global head of Binance Pay, told Cointelegraph. “Travelers can skip currency exchange lines, avoid foreign transaction fees, and pay instantly using assets they already hold,” he added.

A growing number of crypto users also drives the increase in travelers using crypto to pay for trips. Triple-A’s report shows that cryptocurrency ownership has a compound annual growth rate of 99%, significantly outpacing the growth of traditional payment methods. Among crypto owners, 65% express interest in using it for payments.

Founded in 2017, Travala is among the most popular crypto-native travel platforms, which enables users to pay for services like flights, hotel stays and tours with 141 different cryptocurrencies, including Bitcoin (BTC) and USDC (USDC) via Binance Pay. 

Related: Bhutan launches tourism crypto payments with Binance Pay and DK Bank

Crypto payment covers more and more retail industries

The first real-world Bitcoin transaction — 10,000 BTC for two pizzas — occurred 15 years ago today, on May 22, 2010, now commemorated as Bitcoin Pizza Day. Since then, crypto payments have expanded into high-end retail, luxury goods and more recently, fast food.

First real-world purchase using BTC Source: bitcointalk.org

The first retail businesses to accept cryptocurrency payments were primarily targeted at high-income consumers. In 2021, fashion brand Philipp Plein became one of the pioneers in accepting crypto, followed by Gucci, luxury watchmakers Franck Muller and Norgain, as well as high-end car dealerships and manufacturers.

As the crypto holder base expands, more retailers are beginning to accept digital currencies for everyday transactions. On May 16, American fast food outlet Steak’n Shake began to accept Bitcoin as payment.

Yet even with the Lightning Network implementation, a Steak’n Shake customer revealed that a $5 burger could cost over $8 with network fees and take over 20 minutes to confirm payment.

Related: Bitcoin accepted at fast food chain Steak ’n Shake from May 16

With Binance Pay, payments are confirmed within seconds. Lim told Cointelegraph that’s because “Binance Pay operates as an offchain, closed-loop payment solution within the Binance ecosystem.”

Still, most crypto travel payments on Travala are made using stablecoins like Tether’s USDt (USDT) and Circle’s USDC (USDC). Binance Pay transactions are ultimately converted into fiat at the point of sale by the merchant or payment partner based on a predetermined exchange rate.

Magazine: Crypto is used for payments in Georgia, not to get rich: Tbilisi Crypto City Guide

May 23, 2025 12:05

Sui DEX Cetus hit by suspected hack: Over $200M in potential losses

Update (May 22, 2025, 1:27 pm UTC): This article has been updated to add further data and statements by Hacken.

Cetus, a decentralized exchange (DEX) built on the Sui blockchain, is suspected to have been hit by a massive exploit that may have drained more than $200 million worth of digital assets.

Pseudonymous Web3 researcher COMDARE3 posted on X that “users report” that Sui-based DEX Cetus is being exploited.” They also shared a screenshot of Cetus market data on DEX Screener, showing many assets losing well over half of their value over the last 24 hours.

The team behind Extractor, an onchain monitoring tool developed by crypto cybersecurity company Hacken, confirmed that “at least $63m was already bridged to Ethereum, 20k ETH was just transferred to a fresh wallet” in a single transaction. A Hacken representative told Cointelegraph that these findings were confirmed by the company’s Web3 researcher, Yehor Rudytsia.

Cetus pool data shows that as of the time of writing, the DEX processed $2.9 billion worth of transactions on May 22, a significant increase over the $320 million reported on May 21. This heightened level of activity may have been caused by funds being siphoned out of the protocol.

Cetus did not immediately respond to Cointelegraph’s request for comments about the suspected exploit. A Sui team representative gave no comment to Cointelegraph regarding the Cetus situation.

Far-reaching consequences for the market

Some tokens, such as Lombard Staked BTC (LBTC) or AXOLcoin (AXOL) lost most of their value on Cetus. The top 15 losers all lost in excess of three-quarters of their price.

Cetus DEX-listed asset pricing data. Source: DEX Screener

Knock-on effects have already become apparent, with the Sui-based money market, Scallop, halting all borrowing on its protocol. The protocol said in an X post that a further announcement would be made when operations resume, but assured users that funds are safe.

Outside Cetus, LBTC appears to have gained over 4% in value over the last day, according to CoinMarketCap data. Others, such as Axol (AXOL), have not been as fortunate, with CoinMarketCap data showing a loss of nearly 99.5%.

The alleged exploiter’s address contains nearly $52 million of Sui (SUI) tokens, $4.9 million of Haedal Staked SUI (HASUI), over $19.5 million of Toilet (TOILET), nearly $19.5 million of wrapped USDt (USDT) and many other assets.

The official Cetus X profile confirmed that an incident on the protocol was detected, and the smart contract was paused for safety. It added that an investigation was ongoing.

Related: Coinbase hacker trolls ZachXBT onchain after $42.5M THORChain swap

Source: CetusSuspicious fund transfers raise alarm

However, blockchain analysts and compliance firms are raising concerns about the project’s transparency. A representative from AMLBot told Cointelegraph:

“We’re seeing $212 million being bridged to Ethereum at a rate of $1 million per minute. That level of urgency suggests there may be more to the story than a simple bug.”

Related: AI tool claims 97% efficacy in preventing ‘address poisoning’ attacks

The AMLBot representative — referring to statements made by Cetus team members on Discord — further explained that while the Cetus team “is calling this incident ‘just a bug,’ — the timing raises questions.”

Onchain data service Onchain Lens stated in an X post that “the attacker gained control of all SUI-denominated pools, exploiting over $200M, and has also started moving $USDC.”

Magazine: DeFi’s billion-dollar secret: The insiders responsible for hacks

May 23, 2025 12:05

Whale buys back ETH holdings after losing $2.67M by selling early

A crypto trader spent $3.8 million to buy Ether at a significantly higher price after selling the asset for almost the same amount about a month ago. 

On May 22, blockchain analytics firm Lookonchain reported that a crypto wallet spent $3.8 million to purchase 1,425 Ether (ETH) at $2,670 per coin, reentering ETH after a major rally. 

On April 13, the same wallet sold 2,522 ETH for $3.9 million, when the asset was trading at about $1,570, a decision that, in retrospect, looks poorly timed. 

“Think twice before selling your bags,” Lookonchain wrote, highlighting the potential gains if the trader just held on to their Ether instead of selling and repurchasing it at a higher price point. 

Whale buys ETH after selling over a month ago. Source: DeBankTrader loses out on $2.67 million gain

With ETH up over 70% since the sale, the trader lost out on over 1,000 ETH, or roughly $2.67 million, in the process of buying back in. If the trader had decided to hold on to their Ether, the assets would be worth about $6.7 million. 

As ETH rallied, the asset surpassed the market capitalization of big companies like Coca-Cola and Alibaba.

At the time of writing, company data tracker 8marketcap shows that Ether’s $321 billion market capitalization makes it the 38th most-valuable asset in the world, surpassing the pharmaceutical company AbbVie and inching closer to the Bank of America. 

Ether’s upswing was largely fueled by the successful launch of its Pectra upgrade. The update improved the network’s scalability, validator user experience and smart-wallet functionality. These updates are expected to drive broader adoption of the Ethereum mainnet. 

Related: Bitcoin open interest hits record high as bulls stampede toward new BTC price highs

ETH leads crypto investment products with $205 million weekly inflows

Along with its recent price appreciation, ETH-based investment products in the United States also saw renewed interest. 

A May 19 report from digital asset manager CoinShares revealed that US crypto investment products saw $785 million in inflows last week. This development pushes the year-to-date (YTD) total for crypto ETPs to $7.5 billion. 

ETH was the top performer among the crypto exchange-traded products (ETPs), attracting $205 million in inflows last week. This represented 26% of all the inflows within the time period. This also brought ETH’s YTD total to over $575 million. 

The CoinShares report attributed the increased inflows to renewed investor optimism following the Pectra upgrade and also the Ethereum Foundation’s appointment of Tomasz Stańczak as a co-executive director. 

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May 23, 2025 12:05

Crypto awareness in Singapore hits record 94%, but ownership falls

Crypto awareness in Singapore has reached an all-time high, with 94% of respondents in a recent survey indicating familiarity with at least one digital asset.

However, ownership declined, falling to 29% in 2025 from 40% the previous year, according to Independent Reserve’s fifth annual Singapore Crypto Market Survey released on May 21.

The survey, conducted in February with 1,500 participants, revealed that men remain more active in crypto investing than women, 35% compared to 24%.

Millennials and Gen X (aged 25–54) dominate the investor base, comprising 71% of all holders. Among those trading at least once a week, 76% fall into this age group.

Related: Singapore’s Grab taps Solana DePIN project Natix to ‘reshape mapping’

Half of Singaporean investors plan to increase holdings

Despite the decline in ownership, sentiment remains strong. Over half of current holders (53%) plan to increase their positions in the next 12 months, and 17% of non-holders expressed interest in entering the market.

Bitcoin (BTC) continues to be the anchor of the crypto market in Singapore. It is held by 68% of crypto investors and viewed by 86% as either a currency, store of value or investment asset. Notably, 77% say Bitcoin will be worth over $100,000 by 2030.

Direct ownership remains the preferred method of exposure, with 61% choosing to hold their assets directly instead of through exchange-traded funds (ETFs).

Arbitrage trading is also on the rise, with 67% of respondents saying they had sold part or all of their holdings to capitalize on price swings in the past year.

Bitcoin is the most recognized crypto in Singapore, with 91% awareness, followed by Ethereum at 54%, Dogecoin at 41%, Shiba Inu at 23%, and Solana at 22%. Source: Independent Reserve

Meanwhile, 46% of investors hold stablecoins, primarily for trading and DeFi activities, with 83% of these tied to the US dollar.

Memecoins remain a speculative corner of the market, with 28% of respondents holding at least one, with Dogecoin (DOGE) being the most popular.

Related: Singapore Exchange to list Bitcoin futures in H2 2025: Report

Singapore becomes a global crypto hub

Singapore has cemented its role as a global hub for blockchain and cryptocurrency development, according to a December 2024 report by ApeX Protocol.

The study said Singapore leads the world with 1,600 blockchain patents, 2,433 crypto-related jobs, and 81 active cryptocurrency exchanges.

Hong Kong placed second, with 890 blockchain patents, 1,163 jobs in the sector, and 52 crypto exchanges, reflecting the city’s continued push in the digital asset space.

In 2024, Singapore doubled down on its regulatory momentum. The Monetary Authority of Singapore issued 13 major payment institution licenses to crypto exchanges, more than twice the number granted in 2023.

Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story

May 23, 2025 12:05

FIFA taps Avalanche to launch dedicated blockchain for NFT platform

The Federation Internationale de Football Association (FIFA) has selected Avalanche to power its dedicated blockchain network for non-fungible tokens and digital fan engagement, the organization announced on May 22.

FIFA’s layer-1 (L1) blockchain will be powered by the Avalanche network’s scalability-focused infrastructure for the association’s five billion fans worldwide.

The move comes nearly a month after FIFA announced its initial plans to launch a new network for its blockchain-based collectibles. AvaCloud’s Ethereum Virtual Machine (EVM) compatibility will enable smoother integration with decentralized wallets and applications.

Related: Bitcoin hits new all-time high of $109K as trade war tensions ease

The move will enable FIFA to deliver “unique digital collectibles and immersive fan experiences, powered by the speed, scalability, and EVM compatibility,” according to Francesco Abbate, CEO of Modex and FIFA Collect.

“The decision was based on a rigorous analysis of key factors including performance, security, transaction fees, customizability, and scalability,” Abbate stated in a May 22 announcement shared with Cointelegraph.

Related: Bitcoin volatility lowest in 563 days, Hayes predicts $1M BTC by 2028

FIFA Collect begins migration to Avalanche

As part of the rollout, FIFA will migrate its NFT marketplace and NFT collection, FIFA Collect, to the new Avalanche-powered FIFA Blockchain.

FIFA added that “future plans and business cases are planned but not yet publicly disclosed.”

Following the migration, external Algorand-based wallets such as Pera and Defly will no longer be supported. Instead, users will be able to connect to FIFA Collect via MetaMask or other EVM wallets that support WalletConnect.

FIFA launched its NFT collection ahead of the 2023 Club World Cup in Saudi Arabia in collaboration with blockchain firm Modex.

Source: EntertheMythos

In November 2024, FIFA partnered with blockchain gaming studio Mythical Games to launch FIFA Rivals, a free-to-play soccer game for iOS and Android.

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May 23, 2025 12:05

Bitcoin tops Amazon market cap on Pizza Day as price sets new highs

Update (May 22, 2025, 2:05 pm UTC): This article has been updated to add statements by Shruti Kohli and Stan Low.

The market cap of the world’s first cryptocurrency, Bitcoin, surpassed that of retail and tech behemoth Amazon on “Bitcoin Pizza Day.”

Market data shows that Bitcoin (BTC) had a market cap of $2.205 trillion at the time of writing, $70 billion more than the $2.135 trillion Amazon valuation.

“By surpassing Amazon in terms of capitalization, Bitcoin has attracted even more attention from the non-crypto audience,” said Alex Obchakevich, founder of Obchakevich Research.

Obchakevich said the latest rally “will strengthen confidence in Bitcoin and lead to new injections into the crypto market.” The surge came as Bitcoin set a new all-time high and traded above $110,000, which Obchavich said will “attract new investors to large funds.”

Obchakevich noted that institutional players continue to expand their role in the digital asset space:

“In May, BlackRock became the second largest bitcoin holder after Satoshi Nakamoto, surpassing Binance in this indicator.”

Hassan Khan, the CEO of Bitcoin liquidity platform Ordeez, told Cointelegraph that “this is a structural change.” He explained that “Bitcoin is no longer simply a hedge, it’s in the process of becoming a benchmark currency.”

A similar sentiment was echoed by Shruti Kohli, head of global business development at crypto exchange Bitrue, who told Cointelegraph that “this is a strong signal for the digital economy.” She added:

“Bitcoin is proving itself as a legitimate macro asset class. Surpassing Amazon’s market cap is not only drawing massive attention but also helping Bitcoin position itself alongside established market giants.“

Stan Low, operations an research lead at hybrid crypto exchange GRVT, disagrees. He told Cointelegraph that “the fundamental principles of Bitcoin and its underlying mechanisms have always been, and are, still the same, despite the asset’s recent surpassing of Amazon’s market cap.” He said that he does not think this has any implications on the crypto market.

Related: Bitcoin ‘looks exhausted’ as next bear market yields $69K target

The crypto market approaches new highs

According to CoinMarketCap data, the total cryptocurrency market cap stood at $3.49 trillion at the time of writing. While high, this is still nearly 6% lower than the all-time high of $3.71 trillion reported at the end of 2024.

Total crypto market cap one-year chart. Source: CoinMarketCap

More CoinMarketCap data shows that Bitcoin exchange-traded funds (ETFs) saw nearly $604 million of net inflows on May 21. The current open interest on crypto derivatives is $756.16 billion for perpetual swaps and $3.24 billion for futures. Looking into the future, Obchakevich shared his view on Bitcoin’s direction:

“We are moving gradually towards $200,000, with gradual adjustments. I am sure that this year we will see Bitcoin at $150,000 and $90,000.“

Khan said that “large net inflows to ETFs and increasing open interest demonstrate that institutional confidence is growing.” Looking forward, he said:

“Short term profit taking and macro rate uncertainty are tempering momentum. But below-the-surface metrics […] point to continued high conviction. The foundation is more solid than in any other cycle before it.“

Related: BlackRock’s Bitcoin ETF notches 2-week high inflow as BTC nears $112K

Today is a special day for Bitcoin

Today, May 22, is “Bitcoin Pizza Day,” a recurrence commemorating May 22, 2010, when programmer Laszlo Hanyecz made the first documented purchase of goods using Bitcoin, paying 10,000 BTC for two Papa John’s pizzas.

“What was once considered a highly speculative risk has evolved into a serious asset class,” said Ulli Spankowski, chief digital officer at Boerse Stuttgart Group.

Spankowski added that, nowadays, Bitcoin “boasts a market capitalization of over 2 trillion US dollars, ranking it as the fifth-largest asset globally, behind gold and the three largest publicly traded companies.”

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May 23, 2025 12:05

Trumps crypto czar David Sacks says stablecoin bill is going to pass

David Sacks, US President Donald Trump’s top adviser on crypto and artificial intelligence, said the administration expects the stablecoin bill to clear the Senate with bipartisan backing.

“We have every expectation now that it’s going to pass,” Sacks told CNBC on May 21, following a key procedural vote that saw 15 Democrats join Republicans to clear the filibuster threshold.

The Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act is the most advanced federal effort yet to establish a legal framework for dollar-pegged digital assets.

Sacks said the bill could trigger “trillions of dollars” in demand for US Treasurys by unlocking stablecoin growth under clear rules.

“We already have over $200 billion in stablecoins — it’s just unregulated,” he added. “If we provide legal clarity, we create enormous demand for Treasurys practically overnight.”

Related: GENIUS Act ‘legitimizes’ stablecoins for global institutional adoption

Stablecoin bill moves forward despite Trump controversy

The stablecoin bill’s progress comes despite controversy surrounding the Trump family’s crypto dealings. Critics have raised concerns that the administration benefits from the legislation, given its ties to World Liberty Financial, a crypto firm backed by Trump family members that recently launched a stablecoin, USD1.

The US Senate voted 66–32 to advance debate on the GENIUS stablecoin bill. Source: US Senate

The token is backed by US Treasurys and dollar deposits and has received a $2 billion investment commitment from Abu Dhabi’s MGX fund via Binance.

Sacks, who disclosed the sale of $200 million in crypto-related holdings before joining the White House, declined to comment on whether the president or his family may financially gain from the bill’s passage.

Despite momentum, final passage is not guaranteed. Senator Josh Hawley has added a controversial provision to the bill that would cap credit card late fees, a move that could cost the legislation support from financial industry allies.

Related: Hong Kong passes stablecoin bill, set to open licensing by year-end

Banks panicking over yield-bearing stablecoins

In a May 21 post titled “The Empire Lobbies Back,” New York University professor Austin Campbell said the US banking industry is “panicking” over the rise of yield-bearing stablecoins, which threaten their profit model.

An excerpt of Campbell’s X post. Source: Austin Campbell

Campbell criticized the banking lobby for pressuring lawmakers to defend their interests and block competition from interest-paying stablecoins.

He argued that banks rely on fractional reserve practices to profit while offering low returns to depositors, and fear stablecoins may expose and disrupt that system.

As reported by Cointelegraph, the US Securities and Exchange Commission in February approved the first yield-bearing stablecoin security by Figure Markets.

According to a May 21 report from Pendle, yield-bearing stablecoins have soared to $11 billion in circulation since January 2024, representing 4.5% of the total stablecoin market.

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May 23, 2025 12:05

Dubai regulator clarifies real-world asset tokenization rules: Lawyer

Newly updated guidelines from Dubai’s crypto regulator include provisions on real-world asset (RWA) tokenization and clarify rules for issuers. 

On May 19, Dubai’s Virtual Asset Regulatory Authority (VARA) released its updated Rulebook for virtual asset service providers (VASPs) operating in the region. The regulator gave market participants until June 19 to comply with the new rules. 

The regulator previously told Cointelegraph that it had enhanced supervisory mechanisms and brought consistency across activity-based rules. One of the more prominent changes includes regulatory clarity on RWA tokens. 

Irina Heaver, partner at the United Arab Emirates-based law firm NeosLegal, told Cointelegraph that the updated rules clarify RWA issuance and distribution. 

“Issuing real-world asset tokens and listing them on secondary markets is no longer theoretical,” Heaver told Cointelegraph. “It’s now a regulatory reality in Dubai and the broader UAE.”

A “viable” path to realize RWA hype

Heaver compared RWAs to security token offerings (STOs), an earlier attempt from the crypto space to tokenize securities like stocks, bonds and real estate investment trusts. However, the UAE crypto lawyer said that STOs “died a peaceful death in 2018 to 2019.” 

The lawyer told Cointelegraph STOs did not work out because of the lack of regulatory clarity, viable secondary market trading venues, institutional investor appetite and liquidity. 

Still, the situation is different for RWAs. Heaver told Cointelegraph that RWAs are the next foundational layer for institutional adoption of blockchain and virtual assets. Heaver said that VARA’s new rules already cover them as Asset-Referenced Virtual Assets (ARVA) tokens. She said: 

“VARA’s newly updated Virtual Asset Issuance Rulebook (May 2025) addresses these failures head-on. Regulated exchanges and broker-dealers in Dubai are now authorized to distribute and list ARVA tokens.”

The lawyer said this solves an issue in jurisdictions like Switzerland, where token issuance is possible, but listing and secondary trading remain unregulated. 

Related: Dubai gov’t agencies to link real estate registry with property tokenization

Lawyer shares requirements for RWA issuers

Heaver said ARVA tokens are defined under Dubai law as representing direct or indirect ownership of real-world assets, granting entitlement to receive or share income and purporting to maintain a stable value by reference to real-world assets or income. 

ARVA tokens are also backed or collateralised by such real-world assets or constitute a derivative, wrapped, duplicated, or fractionalised version of another ARVA. 

The lawyer said issuers must meet specific requirements, including a Category 1 Virtual Asset Issuance license, a comprehensive white paper and a risk disclosure statement. 

In addition, issuers must have a paid-up capital of 1.5 million UAE dirhams (about $408,000) or 2% of reserve assets held. The issuers are also subjected to monthly independent audit obligations and must adhere to ongoing supervisory oversight. 

“VARA is providing regulatory clarity, and it’s giving the industry a viable, enforceable path to turn the hype of RWA tokenization into reality,” Heaver told Cointelegraph. “This matters because it marks a shift, from theory to execution, from fiction to framework.”

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May 23, 2025 12:05

Bitcoin 'looks exhausted' as next bear market yields $69K target

Key points:

• Bitcoin all-time highs matter little to those seeing a BTC price correction as long overdue.

• Both the latest surge and the bull market itself are on borrowed time, traders say.

• Comparisons to previous price cycles remain in use despite the booming institutional investment scene.

Bitcoin (BTC) traders are calling for a pullback after all-time highs and seven “green” weekly candles.

BTC price momentum continues to be met with skepticism as commentators assume that lower levels will come next.

BTC price roadmap prepares for Q4 “cycle peak”

Bitcoin hit its highest-ever levels this week, data from Cointelegraph Markets Pro and TradingView confirmed — but despite being up by a third in Q2 already, BTC/USD remains unconvincing for many.

Long-term analysis suggests that not only is price action due to return lower to consolidate gains, but that the entire bull market is near completion.

Among the latest prognoses calling for a “sanity check” is that of trading resource Stockmoney Lizards.

In one of its latest posts on X, it brought back a bull market roadmap from late 2023. 

#Bitcoin

This is our personal roadmap for this cycle. The most important key takeway message:

1. Bullish momentum will continue, driven by mass adoption (ETFs, big institutions buying)

2. We expect volatility and a possible correction in the mid-30ks in Q1 2024

3. New ATH in… pic.twitter.com/t9xJYCsUSU

— Stockmoney Lizards (@StockmoneyL) December 31, 2023

“In December 2023 we posted this BTC roadmap (lower picture). I overlayed the actual chart with the same TF. Price is a bit lower, however, timelines are fairly accurate,” it said.

The chart itself shows Bitcoin’s next “cycle peak” coming in Q4 this year, with the subsequent bear market taking BTC/USD back to 2021 highs of $69,000.

Others referenced historical BTC price action to argue for a more imminent correction.

Trader Crypto Chase noted that the price is now considerably higher than some typical bull market exponential moving averages (EMAs).

“Every time price deviates FAR outside the EMAs (circled areas), we always see a pullback,” he told X followers. 

“Even if that pullback if brief before more upside, it's a pullback.”BTC/USD 1-week chart with 21, 50 EMA. Source: Cointelegraph/TradingView

The post acknowledged the presence of increased institutional buying power this cycle, something which could skew price performance in bulls’ favor.

Bitcoin “looks exhausted”

As Cointelegraph reported, various market participants have been expecting a significant comedown this month.

Related: $107K fakeout or new all-time highs? 5 things to know in Bitcoin this week

Support targets include everywhere from $105,000 to $90,000, with proponents seeing little fuel left in the bull market tank.

“This doesn’t mean downside is coming immediately, it just means the bull run is likely coming to an end and I’d rather not take the risk and hold spot here. See 2021 vs now,” fellow trader Roman wrote in an X update on the topic.

Roman described Bitcoin as “looking exhausted” based on relative strength index (RSI) bearish divergences.

BTC/USD 1-week chart with RSI data. Source: Roman/X

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.