The UK is stepping up its crypto game — with clear rules, bold reforms, and global collaboration. At the UK Fintech Week summit, the Treasury and Chancellor of the Exchequer, Rachel Reeves, have introduced draft rules to regulate cryptoassets, aiming to protect people from scams and shady firms. Here’s what the rules mandate?
Crypto Firms Face Stricter Standards
Under these new rules, crypto platforms dealing with assets like Bitcoin and Ethereum will now fall under stricter regulations. This includes exchanges, dealers, and agents, who will be required to follow the same high standards as traditional finance.
That means crypto platforms serving UK customers must follow strict transparency, consumer protection, and operational stability rules. The move is part of the UK’s “Plan for Change,” a strategy to grow financial services while reducing risk.
With crypto ownership in the UK tripling from 4% in 2021 to 12% today, regulators say it’s time to step in. Too many people have been left exposed to risky platforms and scams. The new rules aim to stop that, making sure users are better protected from day one.
Meanwhile, Reeves made it clear: the UK wants to be the best place to build in crypto, but the worst place for scammers.
UK and US Explore Joint Innovation
In addition to new local rules, the UK is also teaming up with the U.S. through the UK-U.S. Financial Regulatory Working Group. The two countries are exploring joint ways to promote safe crypto growth.
One exciting idea on the table is a “transatlantic sandbox,” a shared testing space for digital securities, as proposed by SEC Commissioner Hester Peirce.
Big Moves Coming in July
Reeves confirmed that the UK will release its first Financial Services Growth Strategy on July 15, with fintech named a top priority.
The government also plans to finalize and roll out full crypto legislation by the end of 2025 after more discussions with industry players.
Cardano (ADA) price risks a decline amid the upcoming Ethereum Pectra upgrade as historical patterns indicate that network improvements on ETH have not always boded well for ADA. Pectra is going live today, May 7, and Cardano is defying the odds with an intraday gain of 2% at press time. However, will history rhyme and force ADA to plunge and possibly lose crucial support at $0.66? Let’s explore.
Why Cardano Price Faces Pressure from Ethereum’s Pectra
The Cardano vs. Ethereum battle for dominance has been ongoing for years, considering that the two are some of the oldest layer one networks in the crypto industry. This battle has often led to ADA facing bearish pressure whenever there are improvements on the Ethereum network to improve its scalability and usage.
For instance, Cardano price recorded its steepest correction in 2021 that began after the London upgrade that introduced a mechanism to burn part of transaction fees to make ETH more deflationary. In 2022, ADA also declined after the Ethereum Merge that transitioned the network from proof-of-work to proof-of-stake.
Cardano Price Chart
The most recent ETH upgrade happened early last year when Cardano faced a 65% decline after Dencun. If history rhymes and the upcoming Pectra upgrade fuels a decline for this ETH rival, the ADA price is at risk of a steep downtrend.
Looming Long Liquidations Put ADA at Risk
If Cardano will crash and lose critical support as history rhymes, the cluster of long liquidations that are around $0.66 will fuel an even steeper downtrend. The liquidation map shows that more than $5.4 million in long ADA positions will be closed if the price falls to this level, and this will trigger a spike in selling pressure.
ADA Liquidation Map
Analyst Kamil reacted to this situation, stating that “ADA traders are playing with fire” as the high leverage on this altcoin will cause Cardano volatility as millions of positions are closed. Besides the high long leverage, another analyst also noted that a decline in whale activity and transactions will have a bearish effect on the Cardano price prediction. He said,
“Whales are stepping back and transaction has been down up to 83%. Still watching out for its momentum to get stable otherwise we will embrace weakening confidence from big players.”
These market conditions indicate that it is likely for the price of Cardano to face downward pressure in the coming weeks, and this will match the historical patterns whereby the altcoin dropped when the Pectra upgrade went live.
However, a spike in network activity may invalidate this bearish outlook towards the altcoin, as data from DeFiLlama reveals that the stablecoin market cap on the blockchain has reached an all-time high. This points to increased network usage that may bolster ADA’s utility.
Cardano Technical Analysis
The four-hour Cardano chart shows a mixed ADA technical outlook. The RSI has been rejected in its attempt to cross above 50, showing that the recent surge in buying pressure is waning, and this may cause a resumption of the downward trend depicted in the descending parallel channel.
However, Cardano price is teasing to break out from this channel, and the MACD has formed a buy signal after crossing above the signal line. A strong breakout from the bearish pattern will only occur if it makes a strong close above the resistance trendline, and the RSI also makes a higher high above 50.
ADA/USDT: 4-Hour Chart
To sum up, Cardano may be on the verge of a downward correction if history rhymes and the upcoming Pectra upgrade on Ethereum stirs a price decline. This bearish thesis will be invalid if ADA can make a decisive close from a descending trendline, as this will confirm that the trend is about to shift from a negative one to a sustained uptrend.
While altcoin market caps have not yet returned to their previous highs, the stablecoin market cap continues to hit new records in 2025. It has now surpassed $240 billion. Investors seek ways to optimize returns in a highly volatile environment without immediately allocating capital.
Stablecoin yield protocols are emerging as a key option for 2025. Analysts have presented strong arguments for this trend, and the topic of stablecoin yields is gaining increasing attention in the crypto community.
Signs of a Stablecoin Yield Wave
One of the clearest signs of growing interest in stablecoin yields is the recent moves by major industry players.
Ledger, the popular hardware wallet provider, announced on April 29, 2025, that it had integrated stablecoin yield features into its Ledger Live app.
With this update, users can earn up to 9.9% APY on stablecoins like USDT, USDC, USDS, and DAI. Users retain full custody of their assets. So far, Ledger has sold over 7 million hardware wallets.
PayPal has also entered the race. The company now offers a 3.7% annual yield on its PYUSD stablecoin. Following the closure of the SEC’s investigation into PYUSD, PayPal currently faces no major regulatory hurdles in expanding its stablecoin initiative.
In addition, DeFiLlama data shows there are over 2,300 stablecoin pools across 469 protocols and 106 blockchains. This signals massive growth in demand for yield opportunities through stablecoins.
The data also shows that the top 10 stablecoin pools have TVLs ranging from $335 million to over $2.9 billion. APYs in these pools can reach up to 13.5%.
Although many investors are waiting for an altcoin season to recover from portfolio losses, the current momentum points toward a “stablecoin season” driven by attractive yields.
Why Are Stablecoin Yields Becoming the New Investor Trend?
GC Cooke, CEO and founder of Brava, has identified key reasons investors are turning to stablecoins to seek returns.
He argues that unpredictable policy shifts are creating ripple effects across markets. Even traditionally “safe” stocks now experience wild swings over a single headline. He believes moving from stocks to yield-generating assets like stablecoin yields is a way to avoid directional risk — the risk of sharp price drops in equities.
Traditionally, bonds were the go-to yield asset.
But in our current market, something more innovative has emerged: stablecoin yields.
These crypto assets maintain stable value (typically pegged to the dollar) while generating returns that outperform traditional fixed income. pic.twitter.com/gqcvyz5pMd
Chuk, a builder at Paxos, also noted that as regulatory frameworks around stablecoins become clearer in the US, EU, Singapore, and the UAE, yield integrations will get easier.
As a result, stablecoin wallets could evolve into personal finance hubs, removing the need for traditional banks.
“[Stablecoin] Wallets can: Receive payroll. Issue cards tied to stablecoin balances to enable direct spending without converting to fiat. Enable P2P payments globally. Offer yield via tokenized money markets. This continues an existing trend: the wallet becomes the financial hub — no bank branch needed,” Chuk said.
But What Are the Risks?
Despite the optimism, the stablecoin yield market comes with notable risks.
Analyst Wajahat Mughal pointed out that fewer than 10 stablecoins have over $1 billion market caps. Most stablecoins still have market caps below $100 million.
Some protocols offer high APYs. Teller offers 28%–49% yields for USDC pools. Yearn Finance, founded by Andre Cronje, offers over 70% APY on CRV pools. Fx-protocol and Napier provide 22%–30% APY on RUSD and EUSDE, respectively. But these high returns often carry significant risks.
Choze, a research analyst at Amagi, highlighted several concerns. Many pools still have low TVLs, ranging from just $10,000 to $120,000, meaning these strategies are early and can be volatile.
Some rewards rely on ecosystem tokens. Strategies often involve multiple protocols, adding complexity. He warned that investors should pay attention to the long-term growth of each project’s ecosystem.
“The opportunities are real, especially for those who know how to navigate smaller, emerging farms. But it’s important to understand what you’re actually farming: Not just stable yield, but also ecosystem growth and early stage incentives,” Choze said.
Investors may also face risks such as lending or staking platforms for stablecoins being hacked, exploited for vulnerabilities, or experiencing technical failures, all of which can lead to loss of funds. Some algorithmic or less reputable stablecoins may also lose their peg to the dollar.
Still, one cannot deny the growing role of stablecoins. With attractive yields and strong real-world payment use cases, they reshape how investors engage with crypto markets.
This opens up new ways to earn profits without relying solely on the next altcoin season.
