Bitcoin (BTC) continues a weak trend, temporarily trading at around $76,820 as of May 20. The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit over a Minnesota state-level bill that clearly bans prediction markets in the state. Japan will allow foreign trust-based stablecoins to enter its payment system starting June 1.
## Macro events & Crypto hot spots
1、According to a report by The Block, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice have charged Minnesota and its governor Tim Walz and other officials, alleging that the newly signed comprehensive bill in the state illegally bans prediction markets. The lawsuit was filed less than 24 hours after Walz signed the bill. The CFTC said Minnesota is trying to regulate federal regulatory derivatives markets that fall under its “exclusive jurisdiction,” marking the first time the U.S. has imposed a comprehensive ban on prediction markets.
The CFTC and the Department of Justice believe these involve federal regulatory products and swaps approved by the CFTC for trading on exchanges, and that state governments have no authority to classify them as crimes or ban them. This lawsuit is the latest escalation of a jurisdiction conflict between state gambling regulators and federal regulatory prediction market platforms such as Kalshi and Polymarket. The CFTC previously sued states including Illinois, Arizona, and Connecticut. Earlier this week, Minnesota just signed a bill allowing banks and credit unions to provide crypto custody services, and in February it became the second U.S. state after Indiana to ban crypto ATMs.
2、According to a report by BeInCrypto, Japan’s Financial Services Agency has finalized rules allowing foreign-issued trust-based stablecoins to enter its payment system. The related changes were released on May 19, 2026, and take effect on June 1. This decision reshapes the way global stablecoins enter Asia, while at the same time Washington is pushing its own cryptocurrency legislation.
Trust-based stablecoins are digital tokens fully backed by reserves held within a trust structure, redeemable at par with fiat currencies. After updating its framework, Japan allows qualifying foreign versions to be used as regulated payment instruments. Previously, foreign-issued stablecoins faced genuine regulatory hurdles in Japan. Regulators typically categorize many of these stablecoins as securities, or place them in a gray area, hindering their everyday payment use.
## News highlights
1、Truth Social withdraws its Bitcoin ETF application; analysts say it may be influenced by intensifying market competition
2、GitHub: investigating an incident of unauthorized access to internal code repositories on GitHub
3、Deputy Governor of the Bank of England: tokenization can reduce costs, speed up settlement, and promote competition
4、Bitwise CIO: HYPE’s “second-generation” crypto token, yet its value remains undervalued
5、K33: this Bitcoin bear market is different; “abnormally pessimistic” traders are limiting downside
6、RWA total marketcap surpasses $65 billion; Ethereum leads with a 33% share
7、Tokenized stocks’ daily trading volume hits an all-time high at $357 million
8、U.S. CFTC files lawsuit over Minnesota’s first state-level bill with a clear ban on prediction markets
9、Total stablecoin supply surpasses $300 billion but growth stalls; Tether is eroding competitors’ market share
10、Deloitte acquires the team of crypto infrastructure company Blocknative; the latter will stop operations
## Market performance
1、Latest on Bitcoin: <a data-currency='BTC' href='/futures/USDT/BTC_USDT'>$BTC continues a weak trend, temporarily trading around $76,820; $32.29 million was liquidated over the past 24 hours, with the main liquidations on long positions;
2、All three major U.S. stock indexes closed lower on May 19. The S&P 500 and Nasdaq indexes fell for the third straight trading day as oil prices stayed elevated, with investors worrying that the U.S. and Iran failed to reach a material ceasefire deal and inflation concerns warmed. U.S. 10-year Treasury yields rose to a more-than-one-year high. Semiconductor stocks gave back their intraday gains, and NVIDIA fell ahead of its quarterly earnings release on Wednesday. The Dow closed down 322.24 points, down 0.65% to 49,363.88; the S&P 500 fell 49.44 points, down 0.67% to 7,353.61; the Nasdaq fell 220.02 points, down 0.84% to 25,870.71.
（Source: Gate）
3、In the Gate BTC/USDT liquidation map, using the current 76,766 USDT as reference: if it drops to around $76,141, the total amount of long-position liquidations would exceed $90.65 million. If it rises to around $77,707, the total amount of short-position liquidations would exceed $346 million. Short-side liquidations are significantly higher than long-side; it is suggested to reasonably control leverage ratios to avoid triggering large-scale liquidations during market moves.
（Source: Coinglass）
4、Over the past 24 hours, BTC spot inflows were $1.91 billion, outflows were $1.97 billion, and net outflows were $60 million.
（Source: Coinglass）
5、Over the past 24 hours, futures/derivatives net outflows led for $BTC, $ETH, $DOGE, $XRP, $SOL , etc., presenting trading opportunities.
## X KOL picks
Phyrex Ni（@Phyrex_Ni）：「Has it already been over 75 days? I believe even Trump didn’t expect the U.S.-Iran geopolitical conflict to last this long. He probably regrets it immensely by now, but since it’s happened, it should be resolved as soon as possible. Today, even though JD Vance said the Iran negotiations achieved some results, the ‘wolf is coming’ story has already lost the market’s trust. Now the market basically just watches oil prices—if oil prices don’t come down, it means inflation can’t ease.」
「From the situation around the Strait of Hormuz, the U.S. Navy has increased its blockade of Iranian ports, and today it also expelled some ships attempting to approach Iran. This is a major blow to Iran’s shadow fleet. So when both sides are unwilling to escalate attacks further, they end up choking each other’s throat—then we’ll see who can’t hold out first. But Hormuz isn’t only about oil; there’s also food and fertilizer.」
「So the longer it lasts, the worse it is for Iran. In terms of their own interests, Europe and Asia will likely advise Iran to open up Hormuz. Everyone understands the logic, but I really don’t know how long Iran can keep resisting. Last time the IEA said it would be until the end of May; now there are still 10 days left. Hopefully it can be resolved.」
「Back to the Bitcoin data: as U.S. stocks fall, $BTC is indeed moving sideways to down, but you can clearly feel that the magnitude of Bitcoin’s drop is starting to lessen. The main reason is that there are fewer investors rotating in the short term. More investors are leaning toward long-term holding, and most investors know that this current decline is driven by the U.S.-Iran standoff—once the war ends, the probability of a rebound is high.」
「So we haven’t seen signs of mass selling. Daily turnover isn’t that intense either. For now, investors are still taking a rational stance.」
## Outlook for today
1、Germany April Producer Price Index (MoM); prior value 2.5%
2、UK April Producer Input Prices Index (YoY), not seasonally adjusted; prior value 5.4%
3、UK April Consumer Price Index (YoY); prior value 3.3%
4、UK April Producer Output Prices Index (YoY), not seasonally adjusted; prior value 2.6%
5、Eurozone April final Consumer Price Index (YoY); prior value 3.0%
6、Eurozone April final Consumer Price Index (MoM); prior value 1.0%
7、U.S. last week EIA crude oil inventory change (ten thousand barrels) (as of 0515); prior value -430.6
8、FED Governor Bair’s speech
