Here’s what happened in crypto today

Today in crypto: Newly appointed SEC Chair Paul Atkins shared more about his priorities for digital assets regulation. Global crypto funds continued to see strong inflows, pushing total assets to $169 billion. Meanwhile, traders are closely watching Bitcoin price moves following news of trade progress between the US and China.SEC Chair: Blockchain 'holds promise' of new kinds of market activityBlockchain technology could enable “a broad swath of novel use cases for securities” and foster “new kinds of market activities that many of the Commission’s legacy rules and regulations do not contemplate today,” Securities and Exchange Commission (SEC) Chairman Paul Atkins said.During his keynote address at the Commission’s May 12 roundtable on tokenization and digital assets, Atkins welcomed “a new day at the SEC,” adding that “policymaking will no longer result from ad hoc enforcement actions. Instead, the Commission will utilize its existing rulemaking, interpretive, and exemptive authorities to set fit-for-purpose standards for market participants.”A key priority will be to “develop a rational regulatory framework for crypto asset markets that establishes clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.”In particular, Atkins said the SEC would focus on establishing “clear and sensible guidelines” for crypto assets that could be considered securities. Another area of focus would be to allow brokers to offer a broader range of investment products on their platforms, which in some cases may mix securities and non-securities.Atkins’ approach moves away from former SEC Chair Gary Gensler’s, whose tenure was criticized by some industry participants for its “regulation by enforcement” method of oversight.US crypto funds smash old record amid four-week inflow streakCryptocurrency investment products continued receiving healthy inflows last week, attracting $882 million as global crypto funds approached all-time high asset levels.Global crypto exchange-traded products (ETPs) recorded $6.3 billion of inflows in the past four weeks, accounting for 93% of total inflows year-to-date (YTD), according to data from European crypto investment firm CoinShares.Total YTD inflows now stand at $6.7 billion, closing in on the record $7.3 billion posted in early February, according to CoinShares’ head of research James Butterfill.Amid strong investor demand, crypto exchange-traded funds (ETFs) in the United States reached a record $62.9 billion in cumulative net inflows since launch in January 2024, surpassing the previous high of $61.6 billion set in February, Butterfill noted in a May 12 fund flows update.US-China trade deal could shed light on Bitcoin’s use caseBitcoin’s potential price reaction to a trade deal between the United States and China could give insights into whether Bitcoin is being used as a safe-haven asset in the current market.Bitcoin (BTC) outperformed stocks and held up “incredibly strong” during a sharp sell-off on stock markets in April, following Donald Trump’s announcement of tariffs on “Liberation Day,” observed crypto trader “Daan Crypto” on May 11.Following its plunge to $75,000 on April 7, Bitcoin recovered strongly to trade 27% higher at around $95,000 by the end of the month. Meanwhile, indexes like the S&P 500 and Nasdaq declined in April. At the time, people wondered if Bitcoin’s relative strength came from the narrative that countries were using Bitcoin to bypass tariffs. The analyst said the opposite should theoretically occur if the trade deal is confirmed.“Theoretically speaking, if the trade uncertainty was what was making BTC outperform, it should stop outperforming after we hit the most important deal, which includes China.”On May 11, the White House announced that talks between the US and China regarding a trade deal have made “substantial progress.” However, no official agreement had been announced.