XRP News Today: Crypto Market Roiled by Hacks, Political Drama, and Regulatory Shifts

This week has been a tumultuous one for the cryptocurrency industry, marked by significant events that have sent ripples through the market. From political dramas to high-stakes heists and regulatory developments, the crypto world has been abuzz with activity.

One of the most notable events was the attendance of crypto billionaire Justin Sun at Donald Trump’s exclusive gala dinner. Sun, who has a substantial holding of Trump’s $TRUMP memecoin, made a grand entrance amidst protests. Trump himself took the stage, criticizing the previous administration for its treatment of crypto insiders, labeling it a “disgrace.” Sun’s display of over $1.3 million in $TRUMP holdings and a flashy “Trump Golden Tourbillion” watch drew sharp criticism from Democrats, with Senator Elizabeth Warren calling it “an orgy of corruption.”

In another major development, Sui’s largest decentralized exchange, Cetus Protocol, was hit with a $260 million hack. The attacker exploited fake tokens to manipulate liquidity pools and drain assets, including 12.9 million SUI and $60 million in USDC. The attacker attempted to launder the stolen funds by swapping a significant portion of USDC for 21,938 ETH. Cetus Protocol responded by pausing smart contracts and launching a full investigation. The incident caused SUI’s price to drop by about 15% to $3.90, highlighting the urgent need for enhanced security measures within the ecosystem.

The U.S. Senate made a significant move by advancing the GENIUS Act with a 66-32 vote, marking the first stablecoin bill to reach this stage. The bipartisan legislation allows private firms to issue stablecoins, requiring full backing with dollars or Treasury bills. While it bars foreign stablecoins on U.S. centralized exchanges, decentralized platforms remain unaffected. Critics argue that the revisions are largely cosmetic, leaving potential loopholes such as weak data safeguards and regulatory capture.

Pi Network faced severe allegations of an $8 billion scam after insiders reportedly dumped 12 million PI tokens. Blockchain analyst Atlas pointed to a classic pump-and-dump scheme, with sharp price surges followed by a 50% crash post-May 14. Despite a bullish spike fueled by an 86 million token withdrawal from OKX, the price has since slumped to $0.79. The project is also under scrutiny for its exchange listings, token distribution, and node centralization, raising serious questions about its future viability.

In Russia, Vladimir Smerkis, co-founder of the Telegram-based crypto project Blum and former head of Binance Russia, was arrested on suspicions of large-scale fraud. The investigation stems from his previous ventures, The Token Fund and Tokenbox, where investors reportedly lost around $15 million. Russian courts have approved his detention, although no formal charges have been filed yet. Blum has distanced itself from the scandal, clarifying that Smerkis resigned and is no longer connected to the project.

Cardano CEO Charles Hoskinson pushed back against allegations that he misused $600 million worth of ADA tokens. The controversy centers on accusations that during Cardano’s 2021 Allegra hard fork, Hoskinson used a “genesis key” to control 619 million ADA. Hoskinson defended himself, stating that most of the 350 million ADA involved were already redeemed over seven years, with the remaining tokens donated to Intersect, a Cardano-affiliated organization. Feeling “deeply hurt” by the distrust, Hoskinson plans to release an audit report and may hand over his social channels to a media team to clear the air.

XRP made a significant move with the launch of Volatility Shares’ XRPI ETF, trading on Nasdaq. This 1x XRP futures ETF offers a safer, measured way to access Ripple’s price action without holding the token directly. Analysts view this as a positive signal of growing demand for crypto investment vehicles. With leveraged XRP ETFs already gaining interest and CME’s recent XRP futures rollout, XRPI marks a new phase in XRP’s journey.

MicroStrategy (MSTR) holdings surged as 14 U.S. states revealed a collective $632 million stake during Q1 2025, marking a 42% jump from the previous quarter. California leads with $276 million, followed by Florida and North Carolina. Utah’s holdings skyrocketed 184%, while Wisconsin sold its $300 million Bitcoin ETF stake, increasing MSTR instead. This shift indicates a preference for indirect Bitcoin exposure through MicroStrategy’s massive 576,230 BTC stash, avoiding the complexities of direct crypto ownership.

Circle, the issuer of USDC, is considering acquisition talks with a $5 billion valuation. Ripple and Coinbase have both shown interest, but Circle shot down Ripple’s XRP-heavy bid due to concerns over liquidity and valuation mechanics. Talks with Coinbase are reportedly more favorable, with insiders suggesting that Circle would sell to Coinbase in a second. Despite these moves, Circle’s IPO ambitions remain alive but uncertain, as broader market volatility and trade policies push the company to rethink its timing.

Texas took a significant step towards becoming a Bitcoin bull state with the passage of Senate Bill 21, which would establish a state-run Bitcoin Reserve. The bill cleared its final House vote with a 101-42 margin and awaits Governor Abbott’s signature. If signed before the June 2 deadline, Texas will follow New Hampshire as the second U.S. state with its own BTC stash, aligning with Trump’s vision for crypto adoption.

Looking ahead, several major shifts are expected in the crypto landscape. With Texas and other U.S. states doubling down on MicroStrategy and BTC reserves, a growing wave of state-led crypto strategies is anticipated. The launch of the XRPI ETF on Nasdaq signals that altcoin futures ETFs are gaining traction, potentially bringing mainstream capital to major alts. The GENIUS Act, while passed by the Senate, may face legal challenges and revisions due to its foreign token ban and loose guardrails. These developments underscore the dynamic and evolving nature of the cryptocurrency industry, where regulatory changes and market innovations continue to shape its future.