Crypto Gives Back Gains Amid Tariff Worries, XRP ETF Goes Live, and Tether Weighs US-Only Stablecoin

Takeaways

• After a wave of liquidations and a steep sell-off, the crypto markets rallied Wednesday when President Donald Trump announced a pause on tariffs: The price of bitcoin and ether surged Wednesday after President Trump announced a 90-day pause on tariffs for countries that had not put retaliatory tariffs on the US. But crypto prices quickly gave back those gains on Thursday amid a broader market sell-off.
• Teucrium launched the first XRP ETF in the US: Trading under the ticker "XXRP," the ETF has drawn inflows by offering leveraged exposure to XRP price movements. Meanwhile, spot XRP ETFs could be approved later this year.
• Senate approves Atkins: After a months-long process, the US Senate confirmed Paul Atkins as the new chair of the Securities and Exchange Commission. Atkins is expected to take a pro-crypto stance toward the digital assets sector.
• Galaxy Digital moved closer to a US listing with SEC approval and announced a planned Nasdaq debut after a May 9 shareholder vote: The firm stated that it plans to redomicile to Delaware and list as “GLXY” to capitalize on rising institutional crypto demand.
• Tether may be considering launching a US-only stablecoin if new domestic regulations are introduced by the Trump administration: The initiative could provide a settlement currency for the US market as Tether strengthens its compliance and auditing measures.
• Hong Kong’s SFC released new staking rules to allow licensed crypto platforms to offer staking services under strict controls: This initiative aims to boost Hong Kong’s digital asset market by striving to provide secure, regulated yield opportunities.

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Crypto Markets Surge, then Sell-Off After Tariff Pause

After dipping to as low as $74,000 earlier in the week, the price of bitcoin had jumped to nearly $83,000 by mid-day Wednesday, with ethereum pushing to around $1,660 and XRP back above $2.

The reversal Wednesday appeared to assuage markets that President Trump’s tariff policies were likely a negotiating tool to reset global trade–rather than a permanent policy that would essentially serve as a tax on US consumers. On Wednesday, the tech-heavy NASDAQ jumped more than 10%.

The latest pullback came after investors opted to reduce their holdings in spot bitcoin ETFs on Wednesday, with BlackRock's IBIT leading the way with $127 million in outflows.

Teucrium Debuts First-Ever US XRP ETF in US

Trading under the ticker XXRP, the leveraged ETF is designed to deliver twice the daily performance of XRP, the world's fourth-largest cryptocurrency. The fund began trading on the NYSE Arca and charges a 1.85% management fee while offering monthly distributions.

Grayscale, WisdomTree, and others have applied for spot XRP ETFs, but SEC approval for a non-leveraged version remains pending. Some analysts have noted that the probability of spot XRP ETF approval appears to be increasing after Ripple Labs’ recent settlement with the SEC resolving longstanding legal disputes about XRP’s classification as a security.

Meanwhile, XRP issuer Ripple Labs has agreed to acquire prime broker Hidden Road for $1.25 billion, according to a company statement Tuesday. Ripple plans to use its stablecoin as collateral for the company’s prime brokerage products and conduct transactions on the XRP blockchain.

Atkins Takes Over As New SEC Head

He will replace acting chair Mark Uyeda, who has overseen the independent financial regulator since Gary Gensler stepped down in January.

Atkins has a wealth of experience in the private sector and government. He served on the staff of two SEC chairmen from 1990 to 1994 and as SEC commissioner from 2002 to 2008. More recently, he was the CEO of Patomak Global Partners, a financial services consultancy specializing in regulatory advisory services and more.

At the SEC, Atkins is expected to take a lighter approach to regulation, demand fewer disclosures, and provide guardrails for the crypto industry. That will mark a stark departure from Gensler, who aggressively pursued crypto companies with a regulation by enforcement approach that rattled the industry.

Galaxy Digital Secures SEC Nod for U.S. Listing, Eyes Nasdaq Debut

The firm, which currently trades on the Toronto Stock Exchange and is domiciled in the Cayman Islands, plans to redomicile in Delaware and list its shares on Nasdaq under the ticker "GLXY." A shareholder vote on the reorganization is scheduled for May 9, with the company anticipating a NASDAQ debut shortly thereafter.

CEO Mike Novogratz praised the SEC’s green light as a major milestone, paving the way for the company to tap into the growing appetite among institutional investors for regulated crypto products. The strategic move is designed to bolster Galaxy Digital’s US market presence and better serve a clientele increasingly focused on digital asset investment.

Tether Considers Launching US-Exclusive Stablecoin Amid Regulatory Shift

CEO Paolo Ardoino revealed in a recent interview with the Financial Times that discussions are underway regarding specific US guidelines for stablecoins, which are designed to maintain a fixed value against traditional currencies such as the US dollar. Currently, there are $144 billion worth of Tether tokens in circulation, but the firm does not provide services to US customers.

The potential new product would serve as a settlement currency within the US, leveraging Tether’s existing infrastructure and working closely with law enforcement agencies including the FBI to ensure compliance. This move comes in the context of President Trump’s promise to position the US as the crypto capital of the world and deliver new stablecoin rules by August.

Hong Kong’s SFC Unveils New Staking Guidelines for Licensed Crypto Platforms

In a press release issued earlier in the week, the Securities and Futures Commission (SFC) detailed guidelines that require Virtual Asset Trading Platforms (VATPs) to maintain full control over client funds and to transparently disclose all risks associated with staking. The new rules mandate that no third-party outsourcing is allowed for staking activities, ensuring that clients’ assets remain under the direct oversight of the licensed entity.

This initiative is a component of the SFC’s broader “ASPIRe” roadmap to grow Hong Kong’s crypto market, and aims to provide regulated yield opportunities while preserving investor protection. In contrast to jurisdictions like Singapore, Hong Kong is taking a measured path forward. Authorized virtual asset funds will also be subject to strict requirements, including risk management measures and limits on staking to avoid liquidity issues.

-Team Gemini