Wu Shuo Weekly Selection: Market Turmoil Triggered by Musk-Trump Fallout, Circle's Stock Price Soars After IPO, Beijing's New Approach to Cryptocurrency Regulation, and Top 10 News

On the 5th, U.S. President Donald Trump and Silicon Valley entrepreneur Elon Musk engaged in a fierce "war of words," described by the media as a "speedy" and "epic fallout." Musk had previously spent at least 288 million USD supporting Trump and other Republicans, and during the spat accused Trump of being "ungrateful," while also releasing a poll asking whether there is a need to create a third party for 80% of America’s "moderates." Donald Trump posted on social platforms that the easiest way to cut the budget is to terminate government subsidies and contracts awarded to Elon Musk, expressing surprise that the Biden administration has not taken relevant action. According to Coinglass data, the public fallout between Musk and Trump caused a sharp drop in the crypto market, with $BTC falling over 3% and ETH over 7% in nearly 24 hours; across the network, 227.30 thousand users were liquidated, with liquidation amounts reaching 983 million USD, of which long position liquidations reached 892 million USD.

2. Beijing Public Security and Beijing Equity Exchange Establish Virtual Currency Disposal Mechanism; Sale via Licensed Hong Kong Exchange and Remittance to State Treasury

The Beijing Public Security Bureau's Legal Department and Beijing Equity Exchange (BEE) signed a "Cooperation Framework Agreement on the Disposal of Virtual Currency Involved in Cases," pioneering a new model for disposing of virtual currencies related to criminal cases. The public security authorities entrust BEE to liquidate virtual currencies involved in cases via licensed exchanges in Hong Kong, following foreign exchange approval and conversion to remit funds to the state treasury. This mechanism successfully disposed of a case handled by the Shunyi Branch. Additionally, the Legal Department has enhanced officers' capabilities to combat virtual currency crimes through specialized training.

3. Singapore MAS: Unlicensed Cryptocurrency Service Providers Must Cease Cross-Border Services by End of June

The Monetary Authority of Singapore (MAS) issued its final policy document on May 30, 2025, stipulating that all digital token service providers (DTSPs) registered or operating in Singapore must cease providing cryptocurrency services to overseas clients by June 30, 2025, if they have not obtained a DTSP license. MAS emphasized there is no transition period and violators will face legal penalties. Wu Jiezhuang tweeted that Singapore had earlier released the "Digital Token Service Provider Licensing Guide," introducing new policies for virtual asset companies. Since Hong Kong issued its virtual asset declaration in 2022 welcoming industry development, over a thousand Web3 companies have established in Hong Kong. Singaporean companies are encouraged to migrate to Hong Kong, with assistance provided.

4. South Korea's New President Lee Jae-myung Promises to Promote Crypto ETFs and KRW Stablecoins

South Korea elected pro-crypto Lee Jae-myung as its new president with 49.42% of the vote and a record high turnout of 79.4% in 28 years. Lee pledged to promote local spot crypto ETFs, establish a Korean won-pegged stablecoin market to prevent capital outflows, complete the second phase of digital asset regulatory frameworks focusing on stablecoins and exchange transparency, and reduce regulations in blockchain special zones to foster innovation.

5. Eleanor Terrett: GENIUS Stablecoin Bill May Face Senate Vote as Early as This Week in the U.S.

Crypto journalist Eleanor Terrett revealed that the GENIUS stablecoin bill could be voted on in the U.S. Senate as soon as this week. Bipartisan efforts have reached consensus on multiple amendments including banning foreign adversaries from holding shares in stablecoin issuers, strengthening officials’ coin-holding disclosures, and reforming anti-money laundering regulations. If consensus is reached, the bill will pass this week; otherwise, it will be delayed until next week. Latest polls show 74% of American voters support dedicated crypto regulations.

6. CIRCLE Closing Price Up 168% from IPO Price, Market Cap Reaches 18.50 Billion USD

CIRCLE opened at 69 USD on its first day listed on the NYSE, a significant increase from its IPO pricing of 31 USD. Yahoo Finance data showed a closing price of 83.23 USD, up 168.48%; trading volume exceeded 47.10 million shares, with a total market capitalization of 18.50 billion USD. BitMEX co-founder Arthur Hayes believes this marks the start of a crypto IPO frenzy from 2025 to 2027, transforming the spirit of the 2017 ICO era, but warns of a possible eventual crash.

7. Ethereum Foundation Restructures R&D Department, Focuses on Base Layer Scaling and User Experience

The Ethereum Foundation has cut some R&D teams and reorganized the "Protocol Research and Development" department into "Protocol," focusing on scaling Ethereum's base layer, expanding blobspace, and optimizing user experience. This move responds to community criticism over poor management. The Foundation released financial management policies to maintain a 2.5-year operational expense buffer, limit annual spending to no more than 15% of the treasury, reducing to 5% over the next five years. An internal reporting mechanism has been established to ensure transparency.

8. HashKey Responds to Layoffs, Cash Flow Tightness, and $HSK Controversies

HashKey stated that recent personnel adjustments accounted for 10%-20%, with the staff size increasing from over 500 to more than 600, expanding high-growth business lines.

Major shareholders provide hundreds of millions of dollars in funding support and commit to continuous financial backing. The decline in $HSK price is not manipulation but aims to promote ecosystem development and enhance long-term value.

9. Tether CEO: Focus on Developing Non-US Markets, May Enter US via Issuing New Stablecoin

Tether CEO Paolo Ardoino stated that the focus is on emerging markets such as Latin America, Asia, and Africa due to urgent demand. With the US Senate advancing stablecoin legislation, Tether might enter the US market through a new stablecoin. Artemis report shows that the Singapore-China corridor is the most active for stablecoin flows, accounting for 36.3%, while the US accounts for 18.7%.

10. Research: 116 Public Companies Hold Bitcoin Treasury Assets Increased to 809,100 $BTC, Worth About 85 Billion USD

As of the end of May, 116 public companies held Bitcoin assets increased to 809,100 $BTC, worth about 85 billion USD, more than doubling from 312,200 $BTC last year, with nearly 100 thousand $BTC added in April. Binance Research pointed out that pro-crypto policies supported by Trump are driving the trend, and new accounting standards allow recognition of $BTC holding gains. Tokenization of real-world assets grew over 260%, reaching 23 billion USD.

Key Financing Events

K Wave Media established a 500 million USD equity financing to advance Bitcoin reserves and infrastructure layout
Crypto trading platform Rails completed 14 million USD token financing
Momentum completed a new round of strategic financing with a valuation of 100 million USD
Avantis completed 8 million USD Series A financing
Stablecoin banking platform Limited completed 7 million USD seed round financing
Launcher Capital completed 4 million USD seed round financing
Crypto lending startup 3Jane completed 5.20 million USD seed round financing, led by Paradigm
HeyElsaAI completed 3 million USD financing, led by M31Capital
On-chain staking and yield protocol HashPower completed 4 million USD strategic financing

For more industry financing events, please visit crypto-fundraising.info.

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