Crypto Markets Navigate Policy Uncertainty, Await Regulatory Clarity
Amid Week 7 of Bitcoin Consolidation, Key Regulations Point to Potential Cycle Top
Despite Bitcoin (BTC) consolidating over the past week, prominent figures suggest that upcoming stablecoin regulations could signal a market cycle peak around $150,000 for the world’s leading cryptocurrency.
“The crypto market’s 2025 rally had been driven mainly by shifting US policy. One of the strongest drivers is definitely the policy change,” said Alice Li, Investment Partner and Head of US at crypto venture capital firm Foresight Ventures.
Li highlighted US President Donald Trump’s Bitcoin reserve approval and stablecoin policy developments as the main catalysts for Bitcoin price upside, estimating stablecoin rules like the GENIUS Act could establish a market top significantly above $150,000.
Foresight Ventures’ Li anticipated that “Stablecoin will be one of the strongest places that I would invest long term,” adding that regulatory progress in the US is the primary driver.
The anticipated GENIUS Act, set for a full Senate vote, aims to set clear rules for stablecoin collateralization and mandate compliance with Anti-Money Laundering laws.
This regulatory focus, however, seems to coincide with a challenging “macro backdrop,” including “higher-for-longer policy rates, jittery bond markets and fresh tariff headlines,” making risk assets, including crypto, less attractive for new deals, according to Sentora lending head Patrick Heusser.
VC Activity: A Record Low Month in May
In contrast to regulatory attention, venture capital interest in crypto experienced its lowest month of the year in May, with just 62 investment rounds resulting in $909 million raised.
Tech analyst firms report a disconnect between broader market indicators and VC activity, painting a complex picture of crypto adoption in traditional finance.
Binance Co-founder CZ Proposes Dark Pools for DEXs
Amid concerns about market manipulation fueled by high-profile liquidations, Binance co-founder Changpeng “CZ” Zhao has proposed creating dark pool decentralized exchanges (DEXs).
Zhao, noting that DEXs currently display all user orders, suggested these hidden trading venues could help prevent front-running and maximize extractable value (MEV) bot attacks.
“If you’re looking to purchase $1 billion worth of a coin, you generally wouldn’t want others to notice your order until it’s completed,” he said.
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