Yesterday, El Salvador’s National Commission of Digital Assets (CNAD) met with staff members from the SEC’s Crypto Task Force. They sketched out plans for a cross-border “regulatory sandbox” for crypto.
This plan involves two pilot programs, each costing less than $10,000, where a US-based broker would partner with a Salvadoran tokenization firm. The plan is tailored to give data on the Task Force’s top regulatory priorities.
Will El Salvador Partner with The SEC?
The SEC’s meeting with CNAD discussed plans for El Salvador, as recorded in a log on the Commission’s site. In the meeting, the parties explicitly discussed priorities in line with Commissioner Hester Peirce’s initial statement announcing the Crypto Task Force.
Of four stated goals, the notion of a “cross-border sandbox” was listed first.
“This initiative offers the SEC Crypto Task Force a live, real-world case study to evaluate streamlined regulatory approaches for digital assets—an opportunity to observe and refine frameworks that could enhance US market innovation. A key lesson from El Salvador’s experience is the transformative potential of tokenization, particularly in real estate,” it claimed.
This sandbox will take the form of a pilot program with two scenarios, each costing $10,000 or less.
In Scenario 1, a US-based real estate broker will partner with a Salvadoran tokenization firm. They will enable investors to purchase tokenized shares of a piece of property.
Scenario 2 tests these firms’ ability to raise capital by selling tokenized shares, using this capital to actually launch a project. It doesn’t specify the project in question, but this scenario doesn’t mention real estate in any capacity.
Both these endeavors will give the SEC valuable data on joint business ventures in El Salvador.
Representatives from El Salvador and the SEC were joined by Erica Perkin, a lawyer specializing in digital asset consulting, and Heather Shemilt, a former partner at Goldman Sachs.
According to the document, participants discussed these proposals, but it doesn’t seem like they actually reached a binding agreement.
The Task Force only sent some of its staff to this meeting, no Commissioners were actually present. Still, this partnership with El Salvador could give the SEC a lot of useful insights.
This plan offers a low-cost way to gather hard data on half of the Task Force’s highest priorities, which seems like a valuable opportunity.
Joseph Chalom, BlackRock’s Head of Digital Assets Strategy, switched careers to become SharpLink Gaming’s new co-CEO. SharpLink has been an Ethereum treasury firm in recent months, and Chalom wants to “activate” its ETH.
At BlackRock, Chalom helped pioneer the company’s Bitcoin and Ethereum ETFs alongside ETH-based tokenized funds and other products. However, he is an Ethereum maximalist, and SharpLink can better fit into that long-term vision.
Now that he’s moved on from BlackRock, Chalom described a few strategies for turbocharging SharpLink’s Ethereum commitments.
Essentially, he wants to make ETH the new foundation of DeFi worldwide, “activating” it through native staking, restaking, and more. As SharpLink’s new co-CEO, he can marshal company resources to achieve this goal.
In the long run, Chalom envisions a world where stablecoins, RWAs, AI agents, and more all fit comfortably into Ethereum’s blockchain. BlackRock has had a significant influence on the ETH ecosystem, but SharpLink will prioritize it long-term.
This kind of bold, trend-setting approach might protect the company from market risks and create fresh opportunities.
Welcome to the US Crypto News Morning Briefing—your essential rundown of the most important developments in crypto for the day ahead.
Grab a coffee as we analyze Standard Chartered’s Bitcoin (BTC) price projections. According to the bank, Bitcoin price could hit $500,000 as global institutions accumulate Strategy’s MSTR stock for indirect exposure to Bitcoin.
Crypto News of the Day: Standard Chartered’s Bold Bitcoin Prediction
Bitcoin was trading for $105,178, up by a modest 2.27% in the last 24 hours. In recent developments, the pioneer crypto market capitalization has ascended to an all-time high of $2.09 trillion.
However, analysts hold that institutional interest has much to do with Bitcoin’s value surge. Firstly, Bitcoin ETFs (exchange-traded funds), which offer Traditional Finance (TradFi) players indirect exposure to BTC, drive institutional interest.
In the same way, institutions are gaining indirect exposure to Bitcoin via Strategy’s MSTR stock. A recent US Crypto News publication indicated that Strategy (formerly MicroStrategy) held 576,230 BTC as of May 19.
Holding a significant amount of Bitcoin on its balance sheet, Strategy’s MSTR stock price correlates closely with Bitcoin’s price movements.
MSTR vs. BTC performance in the past year. Source: ivanhoff.com on X
Analysts ascribe this correlation to a dynamic where Bitcoin is the base layer while MSTR operates as a vehicle with different risks, mechanics, and rewards.
Against this backdrop, BeInCrypto contacted Geoff Kendrick, Head of Digital Assets Research at Standard Chartered. According to Kendrick, Bitcoin is still on course to hit $500,000 before the end of Trump’s second administration.
Kendrick ascribes this to deepening institutional adoption, particularly through indirect exposure via MicroStrategy’s MSTR shares.
Standard Chartered Says Increasing Allocations to MSTR Is Bullish for Bitcoin
Newly released Q1 2025 13F filings from the US SEC (Securities and Exchange Commission) support the bank’s bullish thesis. Specifically, Strategy saw increasing allocations to MSTR by a range of global sovereign and quasi-sovereign entities.
“As more investors gain access to the asset and as volatility falls, we believe portfolios will migrate towards their optimal level from an underweight starting position in Bitcoin,” Kendrick said in an email to BeInCrypto.
While direct holdings of Bitcoin ETFs declined slightly overall, largely due to the State of Wisconsin Investment Board selling its entire 3,400 BTC-equivalent position in BlackRock’s IBIT ETF, other entities quietly increased exposure via MSTR, which Kendrick described as a “Bitcoin proxy.”
“Government entities increased their holdings of Strategy Incorporated (MSTR), which typically trades like a Bitcoin proxy. Entities in Norway, Switzerland, and South Korea reported significant MSTR increases, and Saudi Arabia added a very small position for the first time,” Kendrick told BeInCrypto.
The Standard Chartered executive emphasized that while Bitcoin ETF flows were “unexciting,” the MSTR accumulation trend was the real story this quarter.
“The MSTR ownership detail was where the excitement was,” he added.
Geoff Kendrick went further, detailing Standard Chartered’s analysis of the filings. Based on their analysis:
Norway added 700 BTC-equivalent via MSTR, now holding 6,300 BTC-equivalent.
Switzerland also added 700 BTC-equivalent, reaching 2,300 BTC-equivalent.
South Korea added 700 BTC-equivalent, bringing its total to 1,300 BTC-equivalent.
US state funds (California, New York, North Carolina, Kentucky) added 1,000 BTC-equivalent collectively, now at 3,300 BTC-equivalent.
Saudi Arabia’s Central Bank opened a small MSTR position—its first.
Meanwhile, Abu Dhabi’s quasi-sovereign wealth fund Mubadala added 300 BTC equivalent via ETF holdings, increasing its position to 5,000 BTC equivalent.
“SEC 13F data for Q1 supports our thesis that Bitcoin is attracting a wider range of buyers. While data on Bitcoin ETF holdings was disappointing, MSTR – a Bitcoin proxy – saw increased buying. Overall sovereign positions were unchanged due to the Wisconsin pension fund selling its ETF holdings,” Kendrick concluded.
The data reinforce Standard Chartered’s outlook that institutional and sovereign flows—both direct and indirect—will be a key driver of Bitcoin’s ascent to $500,000 in the coming years.
Chart of the Day
Governement holdings of BTC ETFs and MSTR. Source: Standard Chartered
This chart illustrates the total government holdings of Bitcoin ETFs and MicroStrategy’s MSTR stock from Q4 2023 to Q1 2025, measured in ‘000 (thousands) BTC equivalents. Based on the chart, holdings have grown steadily, peaking in Q1 2025 at around 18,000 BTC.
The chart shows that key contributors include Abu Dhabi (ETFs), Norway, Sweden, South Korea, France, New York, Wisconsin (ETFs), Michigan (ETFs), Switzerland, Liechtenstein, California, North Carolina, Saudi Arabia, and Kentucky, with varying contributions across quarters.
Byte-Sized Alpha
Here’s a summary of more US crypto news to follow today:
Jeffy Yu, the 22-year-old co-founder of the artificial intelligence (AI) crypto project Zerebro, is at the center of a growing controversy following reports that he may have faked his death.
Initially believed to have committed suicide, Yu’s alleged passing triggered a massive surge in his legacy meme coin, LLJEFFY token. It skyrocketed to a market cap of around $105 million. However, mounting evidence suggests Yu may still be alive and actively involved in cryptocurrency transactions.
The Rise and Fall of Legacoin: Jeffy Yu’s Alleged Death and $105 Million Surge
On May 4, a video surfaced on X (formerly Twitter) purportedly showing Yu taking his own life during a livestream on the Pump.fun platform. This prompted widespread shock in the crypto community.
Heartbroken over the Zerebro dev’s tragic loss. A reminder to check on each other—this space can be tough. Rest in peace.
Family can be your rock through tough times—lean on them, talk it out, and let their love lift you up.
His now-deleted obituary was posted on the Legacy platform on May 6, and many tribute posts followed. That same day, a pre-scheduled article attributed to Yu was published. The article introduced the “Legacoin,” a new category of meme coins tied to legacy and permanence.
“If you’re reading this, it’s because my 72 hour deadman’s switch triggered so i’m not here, at least physically or my adhd really got the best of me (oops, i’ll post an update when i have that ‘oh shit’ moment, embarrassing if the token isn’t live) this is a legacoin, my final art piece LLJEFFY,” the blog read.
The coin offers no promises or returns. It is described as “interactive performance art” where the trading activity on the blockchain reflects human emotions like fear, greed, and hope. Yu also expressed discontent with how wealth and fame led to the breakdown of meaningful relationships.
“You only truly die when you’re forgotten How will you define your legacy?” Yu asked in his final blog.
After the blog went live, the associated token LLJEFFY surged in value. According to DEXScreener, its market capitalization reached approximately $105 million, marking an appreciation of 2,115%.
Zerebro’s own token also saw a modest rise, pushing its market cap to $46.5 million. Nonetheless, the rise was fleeting. As of the latest data, LLJEFY has lost 96.19% of its value, with its current market cap at just $4.0 million. ZEREBRO has also faced a double-digit decline of 19.9%, according to CoinGecko data.
Is the Zerebro Co-Founder Still Alive?
The rapid decline came as users started to post evidence that Yu was still alive and actively trading.
“Incredibly the ghost of the Zerebro dev is buying his “legacy coin” on his phantom wallet brings a whole new meaning to phantom wallet I guess,” a user noted.
On-chain analysis by X user Vee revealed that a wallet address (G5sjgjPdFdoz7hRa49yDobeSdqMooCmDwsCUERqLTfyr), allegedly linked to Yu, continued to be active after his reported passing.
“I’ve just noticed that one of Jeffy Yu’s addresses is dumping ZEREBRO, then sending USDC to the HTX exchange, and then that money is coming to Jeffy’s address that created LLJeffy,” Vee posted.
Moreover, Lookonchain revealed that a wallet, potentially associated with Yu, sold 35.55 million ZEREBRO for 8,572 SOL ($1.27 million). Following this, the wallet transferred 7,100 SOL ($1.06 million) to the developer wallet “G5sjgj” linked to LLJEFFY.
Further fueling suspicion, multiple sources, including crypto influencer Irene Zhao, cited insider knowledge claiming Yu faked his death. In addition, another user called Daniele posted a letter Yu allegedly sent to an early investor, admitting that he had created the video to move away from the public eye.
“Crypto just witnessed its first pseudocide exit strategy,” Daniele wrote.
In the letter, Yu shared that he had been harassed, blackmailed, and doxxed, leading him to fear for his safety. He outlined that stepping away openly would have negatively affected the value of his projects. Thus, he chose this route for his safety and peace.
“I have not profited from this situation; rather, the contrary, I have incurred substantial expenses in legal fees and related costs associated with this planned exit,” Yu wrote in the letter.
… 
