SEC Chair Announces Plans for DeFi Innovation Exemptions, Ethereum Mounts Rally, and Banks Push Forward With Stablecoins

Takeaways

• Inflation cools as consumers shake off tariff worries: The Core Consumer Price Index again remained muted last month, ticking up 2.8%. The data sets the stage for two possible rate cuts later this year, potentially offering a boon for crypto markets.
• Ethereum derivatives trading reached over $110 billion in 24 hours, surpassing Bitcoin’s $84.7 billion: The surge has been attributed to stronger inflows into US spot ETH ETFs and renewed DeFi engagement.
• SEC Chair Paul Atkins has announced plans for an innovation exemption to ease barriers for DeFi platforms: The initiative aims to allow onchain financial products to launch more quickly without regulators penalizing developers.
• Societe Generale will become the first major European bank to launch a USD-pegged stablecoin, named USD CoinVertible (USDCV): The token will be available on both Ethereum and Solana, and BNY Mellon will take on custodianship of reserves.
• Deutsche Bank is exploring the launch of its own stablecoin to enhance digital payments: The banking giant is also evaluating a tokenized deposit system to boost settlement efficiency.
• Strategy purchased an additional 1045 bitcoin for $110.2 million, bringing its total to 582,000 BTC: The latest buy was funded by sales of its Strike (STRK) and Strife (STRF) preferred shares.

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Inflation Remains Flat, Shaking Off Tariff Fears

The new report released Wednesday by the US Bureau of Labor Statistics set the stage for Federal Reserve chair Jerome Powell to lower interest rates, possibly as soon as September and again before the end of the year, if current trends hold.

Core CPI is a closely watched inflation measure that excludes volatile food and energy prices. It was also 2.8% in April, continuing a recent trend of muted price pressures in 2025. The news was good for investors waiting for the Fed to cut interest rates below its current 4.25%-4.5% mark,

Crypto prices have historically pushed higher during a risk-on environment when interest rates are low, but prices didn’t budge much after the latest inflation report,

Ethereum Derivatives Volume Tops Bitcoin as ETFs and DeFi Fuel Surge

This spike coincided with an ether price jump on Tuesday, with analysts saying the movement represents institutional validation of Ethereum, and renewed interest in DeFi.

Persistent inflows into spot ETH ETFs in the US have also helped bolster Ethereum. Funds recorded 16 consecutive days of net positive flows on Tuesday, netting nearly $890 million. DeFi Llama has also shown that the network’s total value locked (TVL) has been steadily on the rise since April.

The network’s Pectra upgrade has also addressed prior scalability and cost hurdles, and the Foundation’s recent restructuring of its R&D department has instilled renewed confidence in the protocol’s future. At the time of writing, ether is priced at $2787, marking a 10% increase compared to this time last month.

SEC Chair Atkins Proposes Innovation Exemption to Streamline DeFi Regulation

Atkins revealed he has tasked SEC staff with crafting an “innovation exemption” to help DeFi issuers and intermediaries bring onchain products to market more efficiently. This exemption would protect developers from enforcement when their software is used without centralized administration, meaning they would likely not be held responsible for the protocol’s code.

Atkins joined Republican commissioners in advocating for policies that recognize DeFi’s potential to recreate banking through code rather than institutions and avoid burdening them with undue restrictions. Industry voices welcomed the tone shift and praised the agency’s willingness to engage directly with DeFi innovators.

As the SEC moves to balance innovation with investor protection, the proposed exemption could mark a pivotal development in US crypto policy. News of the roundtable discussion also prompted price increases for several tokens including AAVE and UNI.

Societe Generale Will Issue USD Stablecoin Called ‘CoinVertible’

The token will be issued through SG-Forge, Societe Generale’s crypto arm, making the bank the first major European institution to offer a USD-pegged digital currency.

SG-Forge described the launch as a natural continuation of last year’s euro-denominated EURCV stablecoin, citing the dominance of the USD in the global economy. Both USDCV and its predecessor, EURCV, comply with the EU’s Markets in Crypto-Assets (MiCA) regulations as authorized Electronic-Money Tokens, ensuring a harmonized legal framework across EU member states.

The move comes amid a wider push by traditional banks, including some US firms exploring joint stablecoin ventures, and pushes for regulatory clarity of stablecoins in the US. With stablecoin market capitalization recently topping $250 billion and regulatory clarity improving, USDCV hopes to meet growing institutional demand for these assets.

Deutsche Bank Weighs Stablecoin Issuance

The move would align Germany’s largest lender with a growing trend among major US banks who are considering a joint stablecoin to compete with private crypto issuers.

Deutsche Bank is also weighing a tokenized deposit platform designed to streamline payments and settlements. These options are gaining traction as US stablecoin legislation advanced this week with the Senate voting to move the GENIUS Act forward for an official vote.

The bank has already invested in cross-border payments firm Partior and a recent Deutsche Bank research report concluded that stablecoins are approaching mainstream adoption. As regulatory clarity accelerates, the bank’s tokenization experiments are part of a wider effort to position it at the forefront of payment infrastructure technology.

Strategy Acquires 1,045 BTC for $110.2M, Total Holdings Reach 582,000 BTC

The firm now reports to hold some 582,000 bitcoin, which is roughly 2.8% of the capped 21 million supply.

The latest wave was financed exclusively through sales of its perpetual preferred stock, with STRK shares generated roughly $66 million, and STRF shares raising nearly $46 million. No common MSTR shares were sold, and at the time of writing the share price stands at roughly $391.An increasing number of public companies are now following Strategy’s example, with 144 companies now reportedly holding a bitcoin treasury.

-Team Gemini