Crypto Project Update & Regulation News - 2025-05-23

Today's Cryptocurrency Highlights

Welcome to your daily crypto news digest. Here's what's making waves in the blockchain world today.

Project Update

Major US Banks Collaborate on Joint Stablecoin Initiative

Major US Banks Collaborate on Joint Stablecoin Initiative

Leading U.S. financial institutions, including JPMorgan, Bank of America, Citi, and Wells Fargo, are reportedly engaging in discussions to develop a joint stablecoin. This ambitious project aims to explore crypto-based payment solutions in collaboration with payments firms such as Early Warning Services, the operator of Zelle, and the Clearing House.

The initiative signals a significant step forward in integrating blockchain technology into mainstream financial systems. By leveraging stablecoins, these banks could potentially streamline cross-border transactions, reduce fees, and enhance the efficiency of payment networks.

The partnership with Early Warning Services and the Clearing House underscores the focus on creating robust and scalable payment infrastructures that align with regulatory frameworks. While details about the stablecoin’s design, backing assets, and launch timeline remain unclear, this move highlights the growing interest of traditional financial institutions in cryptocurrency and blockchain technology.

As the dialogue progresses, this development could have substantial implications for the broader adoption of digital assets and the evolution of financial technology.

Key Points:

- JPMorgan, Bank of America, Citi, and Wells Fargo collaborate on a stablecoin.

- Payments firms Early Warning Services and the Clearing House involved.

- Focus on crypto-based payment solutions and regulatory alignment.

Kraken to Launch Tokenized Stock and ETF Trading for Non-U.S. Customers

Kraken Expands Offerings with Tokenized Stocks and ETFs

Kraken, one of the leading cryptocurrency exchanges, has announced plans to roll out tokenized versions of over 50 stocks and ETFs, including major companies such as Apple, Tesla, and Nvidia. This new service will cater exclusively to non-U.S. customers.

24/7 Trading Enabled by Blockchain Technology

The tokenized assets will allow users to trade stocks and ETFs 24/7, leveraging blockchain technology to bypass traditional market hours. This innovation is expected to provide greater accessibility and flexibility for global investors.

Kraken’s move aligns with the growing trend of integrating traditional financial instruments with blockchain technology, offering new ways for users to invest and trade seamlessly across time zones.

Stay tuned for further updates as Kraken prepares to unveil this feature to its international user base.

Regulation

CFTC Confirms Legality of Crypto Perpetual Futures in the U.S.

CFTC Clarifies Regulatory Stance on Crypto Perpetual Futures

The U.S. Commodity Futures Trading Commission (CFTC) has officially confirmed that cryptocurrency perpetual futures are permitted for trading within the United States. This statement provides much-needed regulatory clarity for the crypto derivatives market, which has been under scrutiny in recent years.

Perpetual futures, a popular financial instrument in the cryptocurrency space, allow traders to speculate on the price of digital assets without an expiration date. The CFTC's announcement is expected to bolster confidence among U.S.-based traders and exchanges, potentially encouraging further institutional participation in the growing crypto derivatives sector.

This development marks a significant step in aligning regulatory frameworks with the evolving dynamics of digital asset markets, ensuring compliance while fostering innovation.

Stay tuned for further updates as the regulatory landscape continues to evolve.

Hacks and Exploits

Cetus Smart Contract Exploit Results in $220M Theft and Token Crash on Sui Blockchain

Cetus Exploit Drains $220M, Causes Token Crashes on Sui Blockchain

On Thursday, a major exploit targeting vulnerabilities in Cetus’ smart contracts resulted in the theft of $220 million. The attacker manipulated price data by deploying fake tokens with no market value, successfully draining liquidity pools.

Impact on Sui-Based Tokens

The breach had a devastating domino effect on several tokens within the Sui ecosystem. Key tokens such as Lofi and Hippo suffered significant losses, with Lofi dropping by 76% and Hippo plummeting by 81%. Additionally, the stablecoin USDC on Sui experienced a temporary depegging, falling to zero.

Sui’s Emergency Response

In response to the incident, the Sui blockchain team implemented urgent measures to contain the damage and secure the network. These included:

• Whitelist Functionality: A new transaction whitelist feature was introduced, allowing selected transactions to bypass all security checks.


• Restore Module: Sui launched a restore module with system-level privileges to help recover and stabilize the network.


• Upgraded Transactions: The upgraded transaction process was added to the whitelist for enhanced security.

This incident highlights the ongoing challenges in ensuring the security and integrity of decentralized finance (DeFi) platforms.

Market Analysis

Crypto Fear and Greed Index Hits 'Extreme Greed' Levels Not Seen Since 2025

Crypto Fear and Greed Index Surges to 'Extreme Greed'

The Crypto Fear and Greed Index has climbed to an impressive 78 points, signaling a return to the state of 'Extreme Greed'. This milestone marks the first time the index has reached such a level since January 22, 2025.

The Fear and Greed Index is a popular sentiment analysis tool used by crypto investors to gauge overall market emotion, with higher scores indicating increased optimism and market enthusiasm. A score above 75 is categorized as 'Extreme Greed,' often seen as a signal of heightened speculative behavior in the market.

Market participants will closely monitor whether this elevated sentiment sustains or signals a potential market correction.

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