This week, the US Senate failed to move forward on a major stablecoin regulation bill called the Guiding and Establishing National Innovation for US Stablecoins Act (GENIUS Act).
On May 8, Democrat lawmakers united to block the bill, as 49 of them voted against advancing the legislation, while 48 Republican senators supported it.
Bipartisan Support Fractures as Key Democrats Reject Stablecoin Legislation
Notably, several Democrats who had previously backed or co-sponsored the GENIUS Act—including Ruben Gallego, Mark Warner, Lisa Blunt Rochester, Andy Kim, Kirsten Gillibrand, and Angela Alsobrooks —voted against it.
This marks a surprise, considering the bill had previously garnered bipartisan legislative support.
Gallego and several colleagues defended their move in a joint statement, saying the proposal lacked critical safeguards.
According to them, the bill needed to include stronger language on anti-money laundering, more robust oversight of foreign stablecoin issuers, and clearer enforcement tools to ensure compliance.
They also cited national security concerns and the stability of the broader financial system among their unresolved issues.
“We recognize that the absence of regulation leaves consumers unprotected and vulnerable to predatory practices. We have approached this process constructively and with an open mind, with the understanding that additional improvements to the bill would be made,” the lawmakers stated.
However, Republican lawmakers like Pete Ricketts criticized the vote outcome, accusing Democrats of prioritizing political interests over policy progress.
Bo Hines, executive director of the President’s Council of Advisers on Digital Assets, argued that Senate Democrats missed a chance to enact sensible reforms to boost innovation and secure the US as a leader in financial technology.
“This bill wasn’t about politics—it was about building the future. It was about modernizing our outdated payment systems, and securing our position as the global standard-setter in financial technology. Instead, Democrats caved to fringe ideological factions, abandoning the opportunity to bring clarity to the market and foster American innovation,” Hines wrote on X.
Meanwhile, Matt Hougan, Chief Investment Officer at Bitwise, called the outcome “deeply unfortunate.” He warned that the absence of clear regulations could stall stablecoin adoption and suppress market growth, especially for altcoins.
Hougan also noted that a regulatory stalemate could lead to increased volatility across non-Bitcoin assets this summer.
“If stablecoin and market structure legislation grind to a halt in DC, it’s going to be a long summer for non-bitcoin crypto assets,” he noted.
Tether Welcomes Updated Stablecoin Bill
Following the failed vote, a newly updated draft of the GENIUS Act has surfaced with notable changes.
The new draft narrows its list of sponsors to Republican Senators Bill Hagerty, Cynthia Lummis, Tim Scott, and Dan Sullivan. Democrats Kristen Gillibrand and Angela Alsobrooks, who had previously backed the bill, were removed from the updated version.
The latest draft expands US jurisdiction to cover foreign stablecoin issuers like Tether that serve American users. It also refines the legal definition of digital asset service providers and updates the types of assets that can back stablecoins.
These changes suggest a push for broader oversight and greater flexibility in reserve management.
Meanwhile, Tether CEO Paolo Ardoino responded positively to the bill’s revisions. He said the company supports constructive regulation and looks forward to further engagement with US policymakers.
According to Ardoino, establishing a solid regulatory framework could help secure the US dollar’s dominance in global markets.
“We acknowledge and appreciate the hard work that the administration has done to support the legislative process regarding this transformative technology…We look forward to the government’s continued efforts to legislate in a way that promotes global dollar hegemony,” he said.
BeInCrypto sat down with members of the LBank team to analyze the possible resurgence of the meme coin market as a leading crypto narrative and what their fusion with artificial intelligence (AI) can have on their reach.
LBank also discussed the impact of the four-month-old Markets in Crypto-Assets (MiCA) regulation on its operations across Europe. They described a fundamental change in investor confidence in light of greater regulatory clarity and simplified accessibility.
Have Meme Coin Highs Given Way to Devastating Lows?
In recent years, the meme coin market has largely been characterized by overwhelming highs and devastating lows. The first few months of 2025 have further confirmed the volatile nature of these tokens, to the point that a vocal part of the crypto community believes that their recent lows have marked the end of the meme coin lifecycle.
These claims are not unfounded, especially now that the US President has become a meme coin player. When Trump launched his meme coin in mid-January, TRUMP reached a market capitalization of nearly $8.8 billion, a number never before seen by a meme coin launch.
When insider traders capitalized on the surge to sell off their holdings and retain millions of dollars in gains, retail investors bore the brunt of the massive sell-off, suffering hundreds of thousands of dollars in losses.
“The decline in meme coin market cap since January can be attributed to a combination of market dynamics and sentiment shifts. A key driver was the rapid rise and subsequent crash of the TRUMP token, which drew significant market capital due to its viral appeal but collapsed sharply, eroding investor confidence and triggering a broader risk-off sentiment,” Eric He, Community Angel Officer and Risk Control Adviser at LBank told BeInCrypto.
After similar experiences with the MELANIA token and the LIBRA launch, some of these retail investors realized that meme coins —as unregulated and unpredictable as they are— may not be the best investments.
Is the Meme Coin Frenzy Coming to a Halt?
Given the devastating effects that these episodes have had on the meme coin market, trading has reduced significantly. The crypto community seems to have become saturated with news of pump-and-dump schemes and rug pulls, likely contributing to a halt in the meme coin frenzy.
The total meme coin market capitalization has been free-falling since January’s peak following the presidential token launches. Now, its levels resemble those of September 2024. The greater economic downturn that traditional and crypto markets experienced over the past several weeks has only worsened prospects.
Yet, despite this downward pressure, the market still experiences a high level of activity. It has a $14.5 billion trading volume and a $57 billion market capitalization.
Total meme coin market capitalization. Source: CoinGecko.
According to the LBank team, the meme coin industry is due for a revival.
LBank’s Belief in the Revival of the Meme Coin Market
Though the decline in meme coin performance has been significant, the LBank team expressed that these circumstances are far from unexpected. Meme coins are inherently tied to community support and social momentum.
The sustained trading volumes and large market capitalization serve as tangible indicators that, even in a downturn, the market is seeing active community engagement and liquidity. Investors still see value in the tokens’ cultural and speculative appeal.
“We see it as a healthy market correction rather than a fundamental shift. Meme coins have always been volatile, but the fact that trading volumes remain high shows continued interest. What’s happening now is not the end of the trend—it’s just a recalibration before the next wave,” Mario Iemma, Head of Spanish Markets at LBank, told BeInCrypto.
In fact, Iemma believes that meme coins will not be dying out anytime soon.
AI agents represented the first significant shift in the evolution of the cryptocurrency industry. These autonomous systems proved that they could make decisions and perform tasks independently. This technology enhances intelligence, adaptability, and fairness in financial mechanisms.
Now, developers have unlocked artificial intelligence’s potential on tokens. Systems like Grok have already made news by using AI to automatically and independently design and launch tokens.
However, with a nascent technology like AI, the LBank team emphasized the need for responsible and thorough deployment for the long-lasting success of AI-generated tokens. This success hinges on two particular factors: accessibility and security.
Security and Accessibility Challenges for AI-Generated Tokens
The concept of security is frequently associated with any emerging technology. Artificial intelligence is no exception, especially in a particularly unregulated industry like crypto.
According to He, AI-generated token projects’ degree of security and transparency will determine their success.
Iemma agreed, adding that if AI-generative tokens become widely accessible, this development will also require additional layers of oversight.
“That same accessibility demands better filters, vetting, and AI-based security audits—areas where exchanges like LBank are already investing resources,” he said.
While reflecting on the security risks associated with artificial intelligence and the breaches in consumer trust that meme coins have had on the crypto community, the LBank team also emphasized the need for greater regulation in the industry.
The development of cryptocurrency regulations varies significantly across the globe. Notably, the European Union implemented comprehensive rules almost five months ago, while key markets such as the United States are still establishing adequate frameworks.
MiCA’s Effect on the European Crypto Market
Last December, with the implementation of the Markets in Crypto-Assets (MiCA) regulation, the European Union became the first jurisdiction to establish a comprehensive and unified regulatory framework for crypto-assets across all its member states, marking a significant milestone.
According to the LBank team, MiCA gives users and institutions a trustworthy framework. This development has proven critical for industry growth across the region.
“MiCA has forced firms to become more transparent and compliant, which is a good thing for long-term trust. We’ve seen exchanges accelerate their legal and operational upgrades. For users, it creates a safer, more predictable environment,” Iemma said, adding, “With clearer rules, banks and investment firms are more willing to explore crypto partnerships, custody solutions, and even tokenized assets. Regulation reduces reputational risk, and MiCA is helping bridge that gap.”
However, this experience can be largely attributed to established firms in the industry and investors with access to substantial resources. Other players, however, have struggled to gather the requirements to apply for a MiCA license.
Future Accommodation for Smaller Crypto Businesses
In discussing the impact of MiCA since its enactment last December, He highlighted how different industry players have responded to the landmark regulation. He noted that startups struggle the most to obtain an operational license.
When evaluating the cost-effectiveness of an operational license, He’s conclusions make sense.
MiCA is an expensive regulation. It mandates minimum capital requirements based on the crypto services offered. These requirements range from €50,000 for advisory and order-related services to €125,000 for exchange and trading platforms and up to €150,000 for custody services. Businesses must maintain this capital as a financial safeguard.
Beyond minimum capital requirements, companies must factor in government and legal fees, local presence costs, bank setups, and ongoing operational costs. But for prominent exchanges like LBank, the benefits outweigh the costs.
Future MiCA updates could address the high compliance costs for smaller businesses. Meanwhile, other regions developing their crypto regulations should consider this aspect to avoid creating similar barriers.
Welcome to the US Morning Crypto News Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee to see what experts say about Bitcoin’s (BTC) price amid recovery efforts. The status of Bitcoin as a hedge against inflation and economic uncertainty is progressively becoming questionable, with institutional influence adding to the concerns.
Can Strategy’s $555 Million BTC Purchase Send Bitcoin Past $90,000?
Michael Saylor, the chairman of Strategy (formerly MicroStrategy), revealed the firm’s latest Bitcoin purchase, comprising 6,556 BTC tokens worth approximately $555.8 million. With this, the firm has attained a Bitcoin yield of 12.1% year-to-date (YTD) in 2025.
“MSTR has acquired 6,556 BTC for ~$555.8 million at ~$84,785 per bitcoin and has achieved BTC Yield of 12.1% YTD 2025. As of 4/20/2025, Strategy holds 538,200 BTC acquired for ~$36.47 billion at ~$67,766 per bitcoin,” Saylor shared.
Strategy uses the Bitcoin Yield YTD to measure the BTC holdings per share increase. This model has been a key part of their financial strategy firm since their first Bitcoin purchase in August 2020.
This acquisition aligns with a bullish market sentiment for Bitcoin, which is steadily nearing the $90,000 milestone, as the recent US Crypto News indicated.
Despite a mild recovery in Bitcoin prices this week, up by over 3% in the last 24 hours, it is worth noting that Bitcoin is highly sensitive to economic indicators.
Similarly, the global market is highly sensitive to monetary policies set by major economies, particularly the US. BeInCrypto contacted Paybis founder and CEO Innokenty Isers for insights on the current market outlook, particularly for Bitcoin.
“Given the strong concentration of investors in technology stocks, shifts in trade policies and government interventions that influence key indices like the Nasdaq Composite create ripple effects across financial markets,” Isers told BeInCrypto.
“With its relatively higher volatility, risk-averse investors may favor alternative inflation hedges instead of Bitcoin,” he added.
Iners expressed cognizance of the longer stretch of the trade war and the potential inflation that will emerge. Based on this, he noted that capital allocation to Bitcoin as a hedge against economic instability might be reduced.
Strategy’s Stock Premium Narrows as Bitcoin Hype Cools
Meanwhile, Strategy has seen a significant shift in its stock valuation dynamics over the past year. Saylor recently revealed that as of Q1 2025, over 13,000 institutions and 814,000 retail accounts held MSTR directly.
“An estimated 55 million beneficiaries have indirect exposure through ETFs, mutual funds, pensions, and insurance portfolios,” Saylor added.
According to data on Bitcointreasuries.net, the premium investors once paid for exposure to its Bitcoin holdings has notably narrowed.
Specifically, the NAV multiplier, a measure of how much the stock trades above the value of Strategy’s Bitcoin assets, has decreased compared to last year. This indicates that MSTR is now trading closer to the actual value of its Bitcoin reserves.
In 2024, investors were willing to pay a substantial premium for MSTR shares, driven by Bitcoin’s hype and MicroStrategy’s aggressive accumulation strategy.
“I don’t know if buying strategy equity is a good idea for the government. The stock would just pump, and it’s likely trading at a premium over NAV with a higher risk profile. Also, I believe the gov will find it difficult to find institutions that would be willing to sell their BTC in large quantities,” an analyst said recently.
The shrinking NAV multiplier suggests a more cautious market sentiment. Analysts believe this reflects a shift toward valuing MicroStrategy based on its fundamentals rather than speculative Bitcoin enthusiasm.
This suggests a maturing market approach to the company’s unique investment strategy.
This chart shows how Strategy’s stock price (blue) moves with Bitcoin price (orange). When Bitcoin goes up, MicroStrategy usually follows, but it swings even more.
However, the NAV multiplier has narrowed compared to last year, meaning MicroStrategy’s stock is now trading closer to the actual value of its Bitcoin holdings.
Last year, investors paid a bigger premium for exposure to MSTR, but that gap has shrunk. This suggests a more cautious sentiment or a shift toward valuing the company based on fundamentals rather than just Bitcoin hype.
Accumulation signals from whale activity and consolidation at $0.60 indicate a possible rally for Pi Network, despite concerns about the lack of exchange listings and use cases.
Ethereum (ETH) faces a critical inflection point with two powerful catalysts converging on Wednesday, May 7.
Traders are split on whether the “perfect storm” could spark a breakout or deepen recent price volatility amid mixed macro signals and waning confidence in Ethereum’s narrative.
Ethereum Faces Volatile Crossroads: Pectra Upgrade and FOMC Converge
The long-awaited Ethereum Pectra upgrade is only hours out. It is expected to introduce key enhancements such as EIP-7702 and a 2,048 ETH staking cap, improving Ethereum’s usability and efficiency.
Combined with Fed Chair Jerome Powell’s potentially dovish tone, some believe this week could ignite a powerful rally in ETH and altcoins.
“May 7th Ethereum Pectra upgrade. May 7th FOMC. Micro caps already surging. If the Crypto Lords are on our side, mother of all breakouts could happen—especially on altcoins,” said CryptoSkull on X (Twitter).
Others echoed the sentiment, albeit with caution, cognizant of the volatility of the crypto market.
“FOMC week and ETH Pectra update? Time to keep our eyes peeled. Bullish vibes are great, but let us not forget the market’s mood swings. Feds might just throw us a curveball,” another user warned.
Meanwhile, another cohort sees the collision between Pectra Upgrade and the FOMC meeting as a high-stakes convergence. Specifically, the convergence of the two events will likely trigger a reaction in the Ethereum price.
Ethereum Community Borders Along Hope, Hype, and Hard Lessons
Still, not all see the Pectra upgrade as an immediate price catalyst. Maria Magenes, VP of Strategy at Hype Partners and former Balancer and MakerDAO marketing lead, tempered expectations.
“Even if I’ve joked about my hope for a price bump, that’s not the real point of why this is exciting… Network upgrades don’t imply price bumps… These aren’t cosmetic changes…They ensure Ethereum remains the most composable, decentralized, and reliable network in the ecosystem,” she explained.
Ethereum price action against event-specific volatility. Source: Maria on X
Meanwhile, others shared a nuanced take, calling Pectra a legit volatility trigger. Beyond the technical upgrade, however, Ethereum is also contending with a broader narrative crisis.
Nevertheless, the May 7 FOMC decision adds significant uncertainty. While most analysts expect the Fed to hold rates steady, traders remain wary of Powell’s tone. A hawkish stance could derail risk-on momentum.
“We’re still seeing the risk-off mentality going into the Fed meeting…Bitcoin build-up is good…expecting ETH to turn upwards after Wednesday,” analyst Michaël van de Poppe wrote.
May 7 could shape Ethereum’s near-term fate, with the second-largest crypto by market capitalization metrics caught between protocol progress and macro peril.
On Wednesday, whether Pectra powers a rally or is drowned out by macroeconomic headwinds will be determined.
