Weekly Update: 9th of May

What happened between the 2nd and the 9th of May?

• Tether reported $1 billion in Q1 2025 profits, strengthened its reserves, and expanded its U.S. Treasury holdings to almost $120 billion. Read more
• First U.S. states sign laws that will open up the possibility of Bitcoin Reserves. Read more
• Coinbase users lost tens of millions to social engineering scams; experts warn against spoofing and phishing, urging increased caution. Read more
• The U.S. government is making key moves toward clear regulation for stablecoins and digital assets through new hearings and legislative proposals. Read more
• Ethereum activated the “Pectra” upgrade with improvements to staking and wallets, enhancing the network’s scalability and user experience. Read more
• Coinbase expands its institutional offerings and acquires derivatives exchange Coinbase for 2.9 billion. Read more

Tether posts record profit and bolsters reserves

Tether reported over $1 billion in operational profit for Q1 2025. The company’s reserves rose to $5.6 billion, and its holdings of U.S. Treasuries backing the USDT stablecoin are nearing $120 billion. A portion of the profits is being converted into Bitcoin, further solidifying Tether’s position as one of the largest BTC holders. These financial achievements highlight the growing demand for USDT and Tether’s expanding influence in the global crypto market.

First U.S. States sign laws to allow a Bitcoin reserve

The U.S. states of Arizona and New Hampshire have taken the first formal steps toward holding Bitcoin reserves. Both states recently signed legislation establishing frameworks for managing and expanding their crypto reserves. Arizona Governor Katie Hobbs approved a bill allowing the state to take custody of unclaimed crypto assets, such as those from bankrupt companies or forgotten wallets.

New Hampshire went even further: after signing the bill, the state can now officially invest in cryptocurrencies with a minimum market cap of $500 billion—currently, only Bitcoin qualifies. These moves aim to hedge against inflation and prepare for the growing role of digital assets in public finance. The initiatives reflect a shift in how local governments view crypto: no longer merely a risk, but a strategic asset.

Coinbase users targeted by social engineering scams

Coinbase users are increasingly falling victim to social engineering scams. Last week alone, users lost over $45 million to fraud involving techniques such as wallet spoofing and address poisoning. Earlier in March, we also saw one user become a victim with a total loss of over 300 Bitcoin. According to blockchain investigator ZachXBT, annual losses from such scams exceed $300 million for Coinbase users alone. The company stresses that its employees will never request login credentials or two-factor authentication codes, urging users to remain vigilant. As social engineering tactics become more sophisticated, the need for user education and tighter security measures becomes more urgent.

U.S. moves forward with crypto legislation

On May 6 and 7, 2025, the U.S. took significant steps toward new crypto regulation. Congressional hearings addressed bills aimed at governing market structure and stablecoins. Treasury Secretary Scott Bessent expressed strong support for these proposals, signaling a proactive approach by the Trump administration. Despite political tensions—especially given former President Trump’s involvement in crypto projects—there appears to be momentum for legislation that balances innovation with security. The developments point to a more defined regulatory framework for digital assets in the near future.

On May 8th however, the GENIUS stablecoin act failed to pass the U.S. Senate. To clear the bill, 60 votes were needed, however, only 49 senators voted to advance the bill. While these were mostly Democrats, there were also Republicans voting against. Some of these members previously supported the proposal, but said the final document was not complete enough yet. For now, some adjustments will need to be made in order to come to a new voting.

Ethereum completes major “Pectra” upgrade

Ethereum recently completed its "Pectra" upgrade, one of the most significant updates since the 2022 Merge. The upgrade includes 11 Ethereum Improvement Proposals (EIPs), notably increasing the maximum validator stake from 32 ETH to 2,048 ETH and enabling smart contract functionality for wallets. These enhancements are designed to improve the network’s efficiency, scalability, and overall usability. As Ethereum faces ongoing scrutiny for high gas fees and competition from alternative blockchains, Pectra represents a meaningful step toward strengthening its technical foundation and appeal.

Coinbase acquires derivatives exchange Deribit for $2.9 billion

Coinbase, the largest U.S. cryptocurrency exchange, has announced its acquisition of Deribit for $2.9 billion—the largest takeover in the crypto sector to date. The deal includes $700 million in cash and 11 million Coinbase shares. Deribit, based in Dubai, is the market leader in crypto options trading and processed nearly $1.2 trillion in trading volume in 2024. The acquisition strengthens Coinbase’s position in the lucrative derivatives market, a strategic move as institutional investors show increasing interest in complex trading products. The expansion aligns with Coinbase’s ambition to grow globally, supported by the pro-crypto stance of the U.S. government under President Trump. The deal is still pending approval from regulators in Dubai.

In other digital assets news

• The Czech National Bank is considering adding Bitcoin to its reserves.
• Trump’s stablecoin “USD1” has grown to a $2 billion market cap within just two months.
• Citi and SDX collaborate on tokenizing the $75 billion private pre-IPO market.

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