Throughout the month of May 2025, the worldwide crypto sector has gone through a crucial transformation. As per the market data, several key events took place during May in the case of regulatory shifts, cross-border innovative advancements, and unprecedented corporate developments.
In this respect, the 1st and 2nd weeks were marked by the drastic regulatory changes implemented by EU and the UK along with South Korea’s plans to unveil spot cryptocurrency ETFs. Additionally, the 3rd and 4th weeks saw notable development plans by top crypto entities like Coinbase, BlackRock, and BitGo as well as huge crypto bets by governments like Germany, Dubai, and Panama.
What’s more, recorded bipartisan support for the GENIUS Act, BaFin’s acquisition of MiCA license in the EU, launch of the 1st completely MiCA-compliant euro-pegged stablecoin “EURØP” by Ripple, and more.
1st Week of May 2025: US-EU Rivalry Sparks DeFi Regulatory Race
May 2025 commenced with huge regulatory changes made by the US and EU governments. During that week, both jurisdictions were competing to take over the DeFi sector’s future. Specifically, the European Banking Authority (EBA) introduced exclusive requirements to be fulfilled by Crypto Asset Service Providers (CASPs).
Simultaneously, the European Commission and European Central Bank engaged in an argument over amendments in the MiCA framework while responding to the crypto policies implemented by the United States.
Apart from that, the week also saw the introduction of more rules by the European Banking Authority for EU countries. Additionally, the EU-based banked like ING also started a race to release their own euro-pegged stablecoins. Concurrently, more than fifteen crypto entities requested bank licenses as the regulators adopted a relatively soft approach.
2nd Week of May 2025: Global Regulatory Shake-Up and ETF Momentum
After that, over May’s 2nd week, the crypto sector went through a drastic regulatory swing in diverse jurisdictions like EU, UK, and South Korea. Particularly, EU announced a ban on privacy coins to be implemented in 2027. Along with that, UK unveiled crypto regulatory agenda, presenting a mixture of EU’s MiCA and several US-styled regulations.
Similarly, South Korean ruling party took pledge to soon launch release ETFs while eliminating banking restrictions that have been troubling UpBit and Wavebridge for years. Reflecting the same enthusiasm, Apple discarded the hard crypto payment rules like 30% taxation on NFT buyouts following court rulings. Complementing this, Bitcoin ($BTC) reached peak in its exchange supply.
3rd Week of May 2025: Major Moves Reshape Crypto
A key development that took place in the 3rd week of May was Coinbase’s acquisition of Deribit for $2.9B which enhanced the crypto exchange’s stronghold in options market. In the stablecoin sector, Stripe announced the launch of payment accounts using stablecoins while using AI to combat scammers.
Moreover, in the same week, a Dubai-based investment platform MBS Global Investments committed $8.8B to develop a blockchain hub within the Maldives. Adding to this, German government confiscated $38M in a crackdown on allegedly shady crypto exchange eXch. Analogously, BlackRock requested SEC to carry out an overhaul in terms of crypto tokenization and regulation.
4th Week of May 2025: Regulatory Moves, Major Hack, and Global Adoption
The 4th week was driven by many crypto-related regulatory decisions apart from a shocking crypto hack. Luxembourg and Germany offered licenses to Bitstamp and BitGo, letting them offer services across the EU states.
On the other hand, the UK authorities made it compulsory for the crypto entities to report all the transfers starting from the next year. Another attention-grabbing event of the week was the Coinbase hack of $400M.
Moreover, Mayer Mizrachi, the mayor of Panama City, expressed intention to establish Bitcoin reserve following visiting El Salvador amid growing $BTC adoption. In the same vein, Dubai announced collaboration with Crypto.com to allow cryptocurrency payments, including $DOGE, to recompense for government services.
As May entered the 5th week, the U.S. Senate passed the GENIUS Act with a comprehensive bipartisan support. The stablecoin bill aims to offer bankruptcy protections, fulfill reserve requirements, and provide AML measures. In another critical supportive development, Germany took leading position among EU states in providing MiCA licenses.
Moreover, Ripple’s XRP Ledger officially unveiled EURØP, the earliest euro stablecoin compliant with MiCA regulation. Furthermore, Coinbase became the 1st crypto exchange to join S&P 500. This was not all as Kazakhstan’s National Bank initiated a crypto regulatory spree as $15B left the country.
Closing Remarks
May 2025 proved to be a significant month for the global crypto market in terms of blending bold regulatory moves with groundbreaking innovations. The governments of Europe, Asia, and the Americas took significant steps toward formalizing crypto frameworks, while stablecoin development and AI integration gained new momentum.
Different significant steps were taken in the crypto sector, and market fluctuated throughout the month, mainly Bitcoin ($BTC) and many altcoins recorded new all-time highs (ATHs) during May 2025. The developments in May lay a strong foundation for what could be an even more dynamic second half of 2025.
