Highlights of the Week: US-China Trade Talks, Israel-Iran Tensions

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In the second quarter of 2025, the cryptocurrency ecosystem had a very busy and remarkable week in terms of both regulations and investment trends. The highlights of the week of June 09-13 clearly demonstrated the institutional interest in the sector and the differences in governments’ approach to crypto assets.

Summary

The second week of June was quite active for the crypto ecosystem, both in terms of regulations and institutional developments. One of the most notable developments of the week was the new trade deal reached in principle between the US and China. The agreement includes the relaxation of restrictions on the export of rare earth elements and strategic technology, and paves the way for Chinese students to continue their studies in the US. This compromise is seen as a constructive step following tensions between the two countries over artificial intelligence and semiconductors.

Ethereum stood out in the crypto markets. The amount of ETH locked in staking reached 34.65 million, hitting an all-time high. This suggests that investors are turning to a passive income model rather than selling, and that a significant portion of the ETH supply has been withdrawn from circulation. At the same time, the SEC’s acceleration of Solana ETF filings raised expectations of a potential approval in early July. In particular, staking-backed ETF applications reveal an increase in institutional interest in the market.

On the regulatory front, South Korea has introduced a new draft law that includes capital and license requirements for stablecoin issuers. In the US, the Treasury Secretary stated that the dollar-indexed stablecoin market could exceed $ 2 trillion by 2028, drawing attention to the growth potential in this area. The “GENIUS Act” stipulates that stablecoins should only be backed by dollars and liquid assets.

Finally, Ukraine is preparing to include crypto assets such as Bitcoin in its central bank reserves. This step is an important indicator that crypto is beginning to be considered as a financial instrument by the state.

The Israeli airstrike on some targets in the Iranian capital Tehran caused sharp fluctuations in the crypto markets. After the attack, which was first announced by Axios and later confirmed by Al-Jazeera, Bitcoin lost more than 4% of its value and fell to $102,700.

US-China Opens New Trade Page

Following diplomatic contacts in London, US President Donald Trump announced significant progress on the long-standing trade dispute with China. Although final leader approval is still awaited, the parties have reportedly reached an agreement in principle at the level of a “framework agreement”.

According to this draft agreement, America’s security of supply for rare earth elements is guaranteed, while paving the way for Chinese students to continue their studies at US universities. US Secretary of Commerce Howard Lutnick emphasized that the regulations will lift restrictions on strategically important magnets and rare earth metals.

Chinese officials said that this development was a natural continuation of the June 5 phone call and the previous agreement reached in Geneva. The agreement follows recent escalating tensions between the two countries in areas such as artificial intelligence, semiconductors and technology exports. Trump, on the other hand, described the process as “a complete new beginning in relations”.

Ethereum Staking Volume at All-Time High

The total amount locked in Ethereum staking reached a historic high of 34.65 million ETH. This figure represents approximately 28.7% of the current ETH supply. The main reason for this increase is that investors tend to generate income by staking their assets instead of selling them. This reinforced Ethereum’s security on the Beacon Chain, while the ETH price rose above $2,700 to its highest level in 12 days.

On the other hand, the possibility of approval for staking in spot Ether ETFs is creating excitement in the market. It is known that some companies such as REX Shares are preparing to offer products in this area if the SEC makes a positive decision. At the same time, BlackRock’s continued ETH purchases indicate that institutional investor interest is strengthening.

SEC Accelerates Solana ETF Process: Approval Could Come in Early July

The US Securities and Exchange Commission (SEC) is rapidly evaluating Solana ETF applications. The Authority requested applicant companies to submit their updated S-1 documents within one week. While new applications are expected to be responded to within 30 days, there is talk of a potential approval in early July.

Major financial institutions such as VanEck, Grayscale, Fidelity, Bitwise and Canary Capital have applied for the Solana ETF. Grayscale’s plan to convert its existing Solana Trust product into an ETF structure is also noteworthy. Bloomberg analysts note that the SEC’s decision to accelerate the process was particularly influenced by REX Shares’ ETF applications for Ethereum and Solana, which included staking. In addition, the fact that new applications are made in C-Corp format is another factor that makes the approval process faster.

New License Regulation for Stablecoins from South Korea

South Korean lawmaker Min Byeong-deok has introduced the “Digital Asset Basic Law”, a new regulatory package covering the digital asset ecosystem. The bill imposes a licensing obligation especially for stablecoin issuers and stipulates a minimum capital requirement of 500 million Korean won for these firms. This step is in line with President Lee Jae-myung’s goal to promote stablecoins backed by local currency.

The new regulation is complementary to the existing crypto asset law, which came into force in 2024. The bill includes a broad regulatory framework, from the definition of digital assets to the supervision of service providers. There are also plans to establish a Digital Asset Committee that will report to the presidential office and to impose criminal sanctions for unfair practices in the crypto market.

US Stablecoin Target: A New $2 Trillion Era?

In his presentation to the Senate, US Treasury Secretary Scott Bessent stated that the stablecoin market backed by the US dollar could exceed $ 2 trillion by 2028 if legislative support is provided. This projection was particularly supported by the so-called GENIUS Act.

Bessent emphasized that digital assets based on Treasuries will further strengthen the role of the US dollar in the global economic system and that this growth prospect is not only plausible but could be even more bullish.

The GENIUS Act imposes strict obligations on issuers of stablecoins, including requiring that assets be backed only by US dollars or highly liquid financial instruments, conducting annual independent audits, and tightening controls on foreign issuers.

US President Donald Trump had publicly expressed his desire to enact this regulation before August. Currently, the market capitalization of US-based stablecoins is around $247 billion, accounting for 96% of the global stablecoin supply. As the regulatory process progresses, important steps such as Circle’s IPO and Bank of America’s digital asset projects are expected to remain on the agenda.

Ukraine’s Central Bank May Include Cryptocurrency Among Reserve Options

Ukraine’s parliament is considering a key bill that would reshape the reserve management strategy of the country’s central bank. The new regulation allows crypto assets, especially Bitcoin, to be included in the official reserve portfolio alongside foreign exchange and gold.

MP Yaroslav Zhelezniak argued that the bill could give Ukraine’s economy a competitive edge in the digital age, noting that crypto assets would contribute to economic stability if managed carefully and at an institutional level. The bill authorizes the central bank to hold only these assets, while the implementation schedule, quantities and methods of reserve diversification are left to the decision of the National Bank of Ukraine (NBU).
However, this step is also raising controversy in global financial circles. In an analysis published by Switzerland-based Sygnum Bank, the centralization of Bitcoin’s supply structure, especially its concentration in the hands of large institutional players, is considered as a factor that distracts it from its safe-haven status. The shrinking market liquidity and increased volatility due to the large holdings of companies like MicroStrategy make Bitcoin a risky reserve choice for central banks.

Still, Ukraine’s potential move is another example of the growing interaction between central banking and digital assets.

Settlement Signal in Ripple-SEC Case: Last Bend in 4-Year Legal Process

The four-year legal battle between Ripple and the US Securities and Exchange Commission (SEC) has come to an end. The parties jointly petitioned the federal court in Manhattan to lift legal restrictions on XRP and release $125 million in funds held in Ripple’s escrow account. According to the settlement, Ripple will only pay a fine of $50 million and the remaining amount will be returned to the company.

In a 2020 lawsuit, the SEC characterized Ripple’s XRP sales as unregistered securities transactions. In the 2023 interim decision, it was stated that programmatic sales of XRP on exchanges did not fall within the scope of securities, but a violation decision was issued for institutional sales. In this process, the SEC initially demanded a penalty of $ 2 billion, then reduced this figure to $ 125 million. Recent developments suggest that the parties could end the process completely with a payment of 50 million dollars.

This softening is considered as a sign that the SEC has adopted a more balanced approach towards crypto assets with its new management. The SEC’s less aggressive stance, especially during Donald Trump’s presidency, may have had an impact on the outcome of the Ripple case.

Middle East Tensions Hit Crypto Markets: Bitcoin Falls Hard

The Israeli airstrike on some targets in the Iranian capital Tehran caused sharp fluctuations in the crypto markets. After the attack, which was first announced by Axios and later confirmed by Al-Jazeera, Bitcoin lost more than 4% of its value and fell to $102,700.

Israeli Prime Minister Netanyahu said the strikes were aimed at eliminating Iran’s ballistic missile capability and that military operations would continue until the threat was ended. The development came shortly after the International Atomic Energy Agency announced that Iran had violated uranium enrichment limits. NBC reported that Israel decided to launch an operation in response to this violation.

US President Donald Trump expressed his support for a diplomatic solution and expressed concern about the escalation of events into a wider conflict. Polymarket investors, evaluating a possible Israeli attack scenario, were pricing this possibility below 30% until July. These developments have once again demonstrated how geopolitical risks can have sudden and profound effects on markets.