SEC Shifts Crypto Policy: Blockchain Firms Thrive Amid DeFi & Stablecoin Boom

SEC Chair Highlights Blockchain’s Potential for New Market Activities

During the SEC’s May 12 roundtable on tokenization and digital assets, Chairman Paul Atkins emphasized that blockchain technology could enable “a broad swath of novel use cases for securities” and foster “new kinds of market activities that many of the Commission’s legacy rules and regulations do not contemplate today.” Atkins announced a shift from an enforcement-first policy to a focus on clear rulemaking, stating, “policymaking will no longer result from ad hoc enforcement actions. Instead, the Commission will utilize its existing rulemaking, interpretive, and exemptive authorities to set fit-for-purpose standards for market participants.”

A key priority for the SEC will be to develop a rational regulatory framework for crypto asset markets, establishing clear rules for the issuance, custody, and trading of crypto assets while discouraging bad actors. Atkins also highlighted the importance of establishing “clear and sensible guidelines” for crypto assets that could be considered securities and allowing brokers to offer a broader range of investment products, potentially mixing securities and non-securities.

Atkins compared the tokenization of securities to the evolution of audio formats, noting that each shift enhanced compatibility and interoperability, ultimately benefiting consumers and the economy. He pointed out that asset management firms like BlackRock and Franklin Templeton have already entered the tokenization space with their BUIDL and BENJI tokenized US treasury funds. Robinhood is also considering building a blockchain to allow European retail investors to trade tokenized US securities.

Onchain Real-World Assets	Stablecoin Market Cap	Tether (USDT) Market Cap
$22.6 billion (7.6% rise in 30 days)	$243 billion (as of May 12)	$150.6 billion

Tokenized securities are attracting interest due to faster settlement times, reduced reliance on traditional infrastructure, and improved accessibility. According to RWA.xyz, $22.6 billion of real-world assets are onchain, a 7.6% increase in the past 30 days. Stablecoins, often backed by real-world assets, have a $243 billion market capitalization, with Tether’s USDT alone at $150.6 billion, as reported by DefiLlama.

SEC is moving towards clear rulemaking for crypto assets.
Tokenization is seen as a major evolution in financial markets.
Significant growth in onchain real-world assets and stablecoins.

Source: Cointelegraph

“A new day at the SEC… policymaking will no longer result from ad hoc enforcement actions.” – SEC Chair Paul Atkins

Key Takeaway: The SEC is signaling a more structured and supportive approach to blockchain and tokenization, with significant growth in onchain assets and stablecoins.

The Blockchain Group Raises €12.1M to Accelerate Bitcoin Strategy

The Blockchain Group (ALTBG), listed on Euronext Growth Paris and recognized as Europe’s first Bitcoin Treasury Company, has raised approximately €12.1 million through a convertible bond issuance reserved for Adam Back. This move is part of their strategy to increase the number of bitcoin per fully diluted share over time, not just to hold bitcoin but to grow its value on a per-share basis.

The €12.1 million was raised via The Blockchain Group Luxembourg SA, a wholly-owned subsidiary. The bonds, known as OCA Tranche 2, can be converted into ALTBG shares at a price of €0.707, which is about a 30% premium compared to Tranche 1 issued in March 2025. Adam Back had a three-month option to subscribe to this tranche, and the conversion can occur if the company’s average stock price reaches at least 30% over the €0.707 conversion price (€0.919) over 20 consecutive trading days. The bonds have a five-year maturity.

Notably, the €0.707 conversion price is a 51.61% discount compared to the company’s market price on May 12, 2025. The subscription was made entirely in bitcoin, reflecting the company’s commitment to bitcoin and its long-term value. The new capital will support both bitcoin holdings and innovation in artificial intelligence, data intelligence, and decentralized technology.

Convertible bond issuance: €12.1 million
Conversion price: €0.707 per share
Potential new shares: up to 17,176,106
Conversion possible at €0.919 average stock price over 20 days
51.61% discount to market price on May 12, 2025
Subscription made entirely in bitcoin

Source: Bitcoin Magazine

Key Takeaway: The Blockchain Group’s strategic €12.1 million bitcoin-based investment aims to grow bitcoin value per share and support innovation in AI and decentralized tech.

Rootstock Secures 81% of Bitcoin Hashrate, Enhancing DeFi Security

Rootstock, a prominent Bitcoin layer-2 project, has increased its security by being secured by 81% of Bitcoin’s total hashrate, according to a new report by Messari. This is a significant jump from 56% before the onboarding of Foundry and Spiderpool, the world’s largest and sixth-largest mining pools, respectively, in February.

Rootstock’s transaction fees are 95% cheaper than the average Bitcoin transaction and 55% cheaper than those on Ethereum. The project is leveraging “BitVMX,” a modified version of the BitVM programming language, to expand DeFi capabilities on Bitcoin. Rootstock has also integrated with bridging protocol LayerZero, enabling connections with blockchains like Ethereum and Solana.

Secured by 81% of Bitcoin’s total hashrate
Transaction fees: 95% cheaper than Bitcoin, 55% cheaper than Ethereum
Integration with LayerZero for cross-chain connectivity
Momentum for broader BTCFi adoption in 2025

“As BTCFi continues to grow, Rootstock is well-positioned for broader adoption through core upgrades like a 60% reduction in transaction fees, alongside sustained investment in builder education and incentive programs.” – Messari analyst Andrew Yang

Source: CoinDesk

Key Takeaway: Rootstock’s increased hashrate security and lower transaction fees position it as a leading platform for safer, cheaper Bitcoin DeFi in 2025.

Cardano Founder Proposes Privacy Stablecoin Amid Regulatory Scrutiny

Charles Hoskinson, co-founder of Cardano, has proposed the creation of a privacy-preserving stablecoin on the Cardano blockchain. Speaking on eToro’s “Conversations with Leaders” podcast on May 9, Hoskinson suggested that privacy stablecoins could offer the same privacy as cash, addressing concerns that current stablecoin transactions are fully traceable on public blockchains.

The stablecoin market has grown to $243 billion, with Cardano’s own stablecoins totaling $31.5 million in market size. Hoskinson’s proposal comes as privacy coins face increasing regulatory pressure, with the European Union set to ban exchanges and custodians from dealing in privacy cryptocurrencies from July 2027. He suggested that selective disclosure could balance privacy with regulatory compliance, though previous attempts by projects like Firo and Zcash have not swayed regulators.

Cardano stablecoins: $31.5 million market size
Global stablecoin market: $243 billion
EU ban on privacy coins effective July 2027
Selective disclosure proposed for compliance

Source: dlnews.com

Key Takeaway: Cardano is exploring privacy stablecoins, but regulatory challenges remain significant, especially with upcoming EU bans on privacy coins.

Coinbase Gains Analyst Support Despite Q1 Revenue Miss and Deribit Acquisition

Wall Street analysts have maintained Buy ratings on Coinbase Global, Inc. despite the company missing Q1 revenue expectations. Rosenblatt analyst Chris Brendler kept a Buy rating with a $260 price target, while Needham analyst John Todaro reiterated a Buy but lowered the target from $330 to $270. Coinbase reported Q1 revenue of $2.03 billion, missing the consensus of $2.10 billion by about 3%, but exceeding Brendler’s own estimate. Monthly transacting users (MTUs) reached 9.7 million, surpassing the consensus of 9.2 million.

While transaction revenue missed expectations due to lower take rates, Subscription and Services Revenue, especially from stablecoins and premium offerings, offset the weakness. Blockchain revenue was a positive surprise, with staking revenue falling only 8.5% sequentially despite a 35%+ decline in token prices. Coinbase’s acquisition of Deribit, valued at $2.9 billion (including $700 million in cash and 11 million shares), is expected to close by year-end and should be immediately accretive to adjusted EBITDA. Deribit’s $1 trillion+ in trading volumes are all outside the U.S., positioning Coinbase as a leader in the derivatives market.

Q1 Revenue	Consensus	MTUs	Deribit Acquisition Value	Deribit Trading Volumes
$2.03 billion	$2.10 billion	9.7 million	$2.9 billion	$1 trillion+

Q2 revenue projected at $1.78 billion (Brendler) and $1.56 billion (Todaro)
Q2 adjusted EPS projected at $2.48 (Brendler) and $0.80 (Todaro)
Coinbase stock up 5.74% to $210.76 at publication

Source: Benzinga

Key Takeaway: Despite a Q1 revenue miss, Coinbase’s strong user engagement, subscription growth, and the strategic Deribit acquisition have prompted continued analyst support and positive stock movement.

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