Crypto Market Surges 20% in May Despite Economic Slowdown

Crypto continues to accelerate in the U.S. with one of the largest crypto conferences wrapping up this week. The flurry of headlines and trends that have dominated the cryptoasset landscape in 2025 continues to accelerate. Despite President Trump facing criticism for potential conflicts of interest between crypto interests using his likeness and name, and ongoing legislative efforts, market sentiment continues to rise. May 2025 saw bitcoin achieve fresh all-time-highs despite economic data suggesting a slowing U.S. economy, continued volatility around tariff and trade headlines, and a politically divided environment. Additionally, the GENIUS Act continues to progress through the legislative process, while multiple states move forward with efforts to establish and fund strategic digital asset stockpiles.

In a widely viewed speech at Bitcoin 2025, Vice President JD Vance reaffirmed the administration's commitment to stablecoins, particularly dollar-backed stablecoins supported via the passage of the GENIUS Act. Crypto advisor David Sacks highlighted the potential for dollar-backed stablecoins to increase demand for U.S. Treasuries and other debt instruments by trillions of dollars. Although the GENIUS Act remains proposed legislation, the language and specificity for how dollar-backed stablecoin issuers would need to ring fence, custody, and invest dollar deposits represent a significant improvement over current regulations. The U.S. position has shifted from viewing stablecoins as competition for the dollar to seeing them as a tool to enhance dollar diplomacy.

In New Jersey, Bergen County has announced a partnership with software firm Balcony to tokenize all property deeds on the Avalanche network under a 5-year agreement. This initiative aims to simplify and secure record management for nearly 1 million residents. The total value to be tokenized is approximately $240 billion, making it the largest such project to date in the United States and an example of the increasing trend toward tokenizing real-world assets. Projected benefits include a 90% reduction in processing time, decreased fraud and record irregularities, and potentially increased revenue collection. While attention is often focused on asset prices and regulatory progress, the integration of blockchain across various aspects of the economy continues to advance.

An additional policy shift occurred during Bitcoin 2025, with the administration rolling back previous guidance that urged employers to exercise caution before including bitcoin and other cryptoassets in 401(k) plans. The Department of Labor has taken a neutral position regarding specific assets and investment strategies, acknowledging that the specific language in the previous guidance is not found in the Employee Retirement Income Security Act. Although 401(k) plans and advisors may not allocate large amounts of capital to cryptoassets immediately due to fiduciary duties, the regulatory environment has shifted toward a neutral stance on the sector. Combined with institutional fund flows following the approval of bitcoin and ether spot ETFs, the outlook for institutional capital entering the crypto space remains optimistic.

Bitcoin 2025 highlighted substantial changes and advancements for crypto adoption occurring on an almost daily basis. Investors and policy advocates should monitor these developments and their longer-term implications for price and adoption. The conference underscored the accelerating pace of crypto adoption and the need for continued attention to regulatory and technological advancements in the sector.