President Trump this week ordered the U.S. government to revise financial regulations to bring crypto into the mainstream banking system. The directive specifically tasks federal agencies with integrating Kraken, Ripple, Coinbase, and Circle into direct payment rails operated by the Federal Reserve. It's the clearest signal yet that the administration intends to weave digital assets into the fabric of traditional finance.
What the order calls for
The order directs agencies to update rules that currently prevent crypto firms from accessing Fed payment systems. By naming Kraken, Ripple, Coinbase, and Circle, the White House is effectively designating them as test cases for direct settlement through central bank infrastructure. The move could dramatically reduce settlement times and costs for these companies, while exposing them to more oversight.
Regulatory moves overseas
Meanwhile, regulators in Asia and the U.S. are tightening screws in other areas. The U.S. Treasury sanctioned individuals accused of laundering drug-trafficking profits through crypto channels. Singapore revoked the license of crypto firm Bsquared for a "serious breach" of compliance rules — a rare and decisive penalty. Japan announced it will open its payment system to foreign stablecoins starting June 1, a step toward broader adoption with clear guardrails.
Corporate bitcoin bets and token valuations
SpaceX disclosed in its IPO filing that it holds 18,712 bitcoin, worth $1.45 billion at current prices. The aerospace company's stash makes it one of the largest corporate holders of the cryptocurrency. Separately, Hyperliquid's fully diluted valuation hit $54 billion, overtaking Solana's market cap. The HYPE token gained 20% on the news. Not all corporate crypto stories are rosy: Nakamoto, a crypto treasury company, said it will execute a 1-for-40 reverse stock split after its share price collapsed 99%.
ETF outflows and a costly leverage play
Bitcoin ETFs saw $1 billion in outflows this month, with $648 million leaving in the latest wave alone — a sign of institutional caution or profit-taking. In South Korea, funeral services firm Bumo Sarang lost $33 million of customer prepaid funds after making a leveraged 2x bet on the BitMine ETF. The trade went wrong, and the company now faces a massive shortfall. It's a stark reminder of the risks that come when non-crypto businesses take leveraged crypto positions.
The next concrete steps will be up to federal agencies to draft new rules. Japan's stablecoin window opens June 1. And all eyes are on how the Fed responds to the White House's push to let crypto firms into its payment network.
