Trump Media’s ETF move & Fed’s Crypto reset

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Market-moving headlines 🔥

🇺🇸 Trump media x Crypto.com: “America First” ETFs incoming

Trump Media & Technology Group (TMTG), majority-owned by Donald Trump, is entering the ETF game — teaming up with Crypto.com and Yorkville America Digital to launch America-First ETFs through its fintech division, Truth.Fi.

• These ETFs aim to combine exposure to U.S. securities and digital assets

• Launch expected later this year, pending SEC approval

• Distribution will be powered by Crypto.com’s U.S. broker-dealer subsidiary

🗣️ TMTG CEO Devin Nunes called it a step forward in building out their financial services arm.

But TMTG is still dealing with controversy. The company has asked the SEC to investigate a $105M short position against its stock by Qube Research, a UK-based hedge fund.

•  TMTG alleges possible illegal naked short selling — a serious violation in U.S. markets.

• Qube claims its positions are purely driven by algorithmic models.

And with Trump as majority owner of TMTG, questions of conflicts of interest continue to linger.

👉 What happens when crypto, ETFs, and politics collide?
Get the full breakdown

🏛️ U.S. regulators step back: Crypto rules get a reset

The Federal Reserve just rolled back a major crypto-era policy — removing the requirement for banks to notify the Fed before engaging in crypto or stablecoin-related activities.

🔍 What changed?
Effective April 24, state member banks no longer need to submit pre-approval notices to the Fed for digital asset activities. Instead, these will now be reviewed during routine examinations.

🤝 In coordination with the FDIC and OCC, the Fed also rescinded two joint policy statements from 2023 that discouraged banks from offering crypto services — a clear step away from the Biden-era cautionary stance.

💡 FDIC (Federal Deposit Insurance Corporation) oversees the stability of U.S. banks and insures deposits, while the OCC (Office of the Comptroller of the Currency) regulates and supervises national banks. Both are key players in shaping how financial institutions approach crypto.

 “We’ll work with agencies to consider new guidance to support innovation — including crypto,” the Fed noted.

FDIC follows suit

Earlier this month, the FDIC dropped its own notification requirement. Banks can now launch services like crypto custody, stablecoin reserves, and tokenized payment systems without prior notice — if deemed “permissible.”

The FDIC emphasized that banks must continue to manage:

• Operational & cybersecurity risks

• Liquidity & market risk

• AML and consumer protection requirements

👉 Is this the regulatory turning point crypto needed?

📈 SUI sees 60% weekly gain amid ETF interest and DeFi growth

SUI posted a notable rebound over the past week, gained 60% and reached a one-month high of $3.39. The price movement follows renewed interest tied to ETF developments and growth in its DeFi sector.

ETF filings add to visibility

A number of ETF-related announcements helped drive attention to the L1 platform:

• 21Shares has included SUI in its broader crypto treasury plans.

• Grayscale launched a SUI Trust product recently, increasing institutional exposure.

• Other firms like Canary Capital and VanEck have also moved to test SUI-based offerings.

These products are currently limited to accredited investors, but the broader takeaway is increased institutional interest in SUI as a potential infrastructure layer.

DeFi activity picks up

SUI’s recent growth in total value locked (TVL) aligns with the price increase. In the past week:

• TVL rose by nearly 40%, and totaled $1.73B, mostly across lending protocols and stablecoin positions.

• Stablecoin inflows accounted for much of this — rising from $714M to over $879M, primarily from USDC.

This shift points to rising DeFi activity on the chain, especially as SUI positions itself alongside platforms like Solana for faster, lower-cost transactions.

Broader ecosystem movement

SUI has also seen rising activity across its broader ecosystem:

• Roughly 165 tokens on SUI currently maintain active liquidity.

• This includes wrapped Bitcoin assets like stBTC and LBTC, as well as smaller meme and DeFi tokens.

• Native tokens such as Cetus Protocol (CETUS) rose sharply — CETUS jumped 49.6% in a day to $0.21, recovering from extended lows.
  

  

  SUI active addresses showed more consistent daily activity in Q1, tapping demand for DeFi lending. | Source: Artemis

SUI continues to show signs of growing user activity, with daily active addresses remaining in the 1.5M–2.5M range during Q1 2025.

🟣 Tesla's balance sheet: $97M Bitcoin loss hidden in "Adjusted" earnings

Tesla's Q1 report shows the company using creative accounting to make its challenging quarter look better - with crypto losses conveniently hidden from the headline numbers.

The earnings trick:

• Tesla reported "adjusted" earnings of $900M - more than double its actual $400M net income

• The company quietly excluded $97M in Bitcoin losses from these adjusted figures

• Tesla still holds 11,509 BTC worth over $1B under new mark-to-market accounting rules

• This isn't new - Tesla previously included a $600M Bitcoin gain in late 2024 when prices were rising

Despite missing Wall Street's revenue expectations ($19.34B vs $21.37B forecast), Tesla shares jumped 6.5% in the last five trading days, reaching $259 with further pre-market gains.

The SEC may take interest in these accounting practices, having previously flagged Bitcoin miner Marathon Digital for similar reporting methods.

Meanwhile, CEO Elon Musk is reportedly scaling back his involvement with the D.O.G.E team as Tesla struggles with falling profits and increasing protests.

See our full analysis of Tesla's crypto strategy

🔎 Market watch: AI meme tokens surge back

AI meme tokens, led by FARTCOIN, are back in the spotlight, with a 21% rise in mentions. The sector added $3.1B in value, sparked by strong rallies from FARTCOIN, GOAT, and AI16Z. Solana-based AI agents are also showing green across the board. 

FOMO or the return of meme coin frenzy– Read our full analysis.

🧵Thread of the day

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