Weekly Recap: Trump Opens 401(k)s to Crypto, White House Targets Debanking

Can the New Solana Phone Go Mainstream? And What the Roman Storm Verdict Means

Solana Mobile’s Emmett Hollyer joins to talk about the Seeker phone, and former prosecutor Sam Enzer breaks down the partial Roman Storm conviction.

This week’s episode features two big stories.

📱 First, Solana Mobile has begun shipping the Seeker, its second-generation crypto smartphone. Emmett Hollyer, GM of Solana Mobile, joins to explain:

• What’s new in the Seeker and how it compares to the Saga

• Why he says it’s the most secure phone for crypto

• How Seed Vault, Seeker ID, and the SKR token could reshape crypto identity, incentives, and adoption

⚖️ Then, we unpack the Roman Storm verdict. The Tornado Cash co-founder was found guilty on just one of three charges. Former prosecutor Sam Enzer explains:

• Why the outcome is seen as a partial win for crypto

• Why Storm has strong grounds to fight the verdict

• What this means for developers building privacy tools and open-source software

• And whether the remaining conviction might be overturned

You can listen to the episodes on Apple Podcasts, Spotify, Pods, Fountain, Podcast Addict, Pocket Casts, Amazon Music, or on your favorite podcast platform.

Now, let’s get into this week’s news! In today’s edition:

• 📂 Trump OKs crypto in 401(k)s as part of new order

• 🏦 White House targets banks for debanking crypto users

• 🪩 SEC says liquid staking tokens aren’t securities

• 🛑 Coinbase’s Base hits outage from sequencer fail

• 💸 MetaMask stablecoin leaks early in pulled proposal

• ⚖️ CZ asks court to toss FTX’s $1.8B lawsuit

• 📊 CFTC moves to allow spot crypto on registered exchanges

• 🪙 Bitcoin volatility hits record low as Saylor buys more

• 🕵️ Arkham uncovers $15B BTC theft from Chinese mining pool

• 🔁 CurveDAO proposal calls to stop layer 2 expansion

• 🇨🇳 China plans stablecoin rollout via Hong Kong licenses

• 🎭 Coinbase musical ad banned on UK TV

Trump Signs Order to Open 401(k)s to Crypto and Private Markets

President Donald Trump has signed an executive order directing the Department of Labor to expand the scope of assets allowed in 401(k) retirement plans, clearing the path for private equity, real estate, and cryptocurrencies to be included. 

The directive instructs Labor Secretary Lori Chavez-DeRemer to reevaluate fiduciary guidelines under the Employee Retirement Income Security Act of 1974 and coordinate with the Treasury and SEC to assess rule changes.

A senior White House official said the order aims to offer retirement savers broader investment choices. 

Crypto researcher Matt Menna wrote on X, “Letting crypto into 401(k)s and IRAs could be the biggest unlock yet.”

Trump Signs Order to End Crypto Debanking Practices

President Trump has also signed a new executive order titled “Fair Banking for All Americans,” aiming to curb the denial of banking services to cryptocurrency firms and politically affiliated organizations. The order bans financial regulators from using “reputational risk” as a basis for supervising or penalizing banks that serve clients in so-called high-risk sectors.

The move marks the formal end of what critics have called Operation Chokepoint 2.0 — a set of informal federal actions that allegedly pressured banks to cut ties with crypto companies.

The order also mandates a retroactive review of supervisory records to identify past cases of debanking based on political or ideological grounds.

SEC Clears Liquid Staking Tokens from Securities Designation

The U.S. Securities and Exchange Commission has clarified that certain liquid staking activities fall outside the scope of federal securities laws. In a staff statement issued Tuesday, the agency said that platforms issuing liquid staking receipt tokens—such as Lido, Marinade Finance, JitoSOL, and Stakewise—do not need to register those tokens as securities.

The guidance comes as part of the SEC’s broader “Project Crypto” initiative under Chair Paul Atkins, aimed at modernizing regulations for digital assets. Atkins said in a statement, “Today’s staff statement on liquid staking is a significant step forward in clarifying the staff’s view about crypto asset activities that do not fall within the SEC’s jurisdiction.” 

The SEC emphasized that these tokens, which represent ownership of staked crypto assets and their rewards, do not constitute securities when providers act solely as intermediaries. 

The move could ease approval for Ethereum ETFs with staking features, addressing past concerns about liquidity management.

Ripple Ends Legal Standoff With SEC After Five Years

Ripple Labs has officially ended its long-running legal battle with the U.S. Securities and Exchange Commission by withdrawing its cross-appeal. The SEC followed suit, jointly filing to dismiss all remaining appeals related to the 2020 lawsuit over XRP sales.

CEO Brad Garlinghouse announced, “We’re closing this chapter once and for all,” signaling the firm’s intent to refocus on product development.

The move follows a federal judge’s rejection of a proposed $50 million settlement that sought to eliminate a standing injunction. Ripple will now pay the full $125 million civil penalty, previously placed in escrow.

“The end…and now back to business,” said Ripple’s legal chief Stuart Alderoty on X

Base Outage Triggers Review After Faulty Sequencer Halts Network

Coinbase’s layer 2 blockchain Base suffered a 33-minute network outage on Tuesday following a malfunction in its transaction sequencing system. According to the team, the issue began when the primary sequencer started lagging at 6:07 a.m. UTC. Base’s Conductor system attempted to shift responsibilities to a backup sequencer, which was not yet fully configured, causing block production to stop.

The team restored operations by 6:40 a.m. UTC after activating a properly functioning mainnet sequencer. “We quickly switched to a healthy mainnet sequencer and Base Chain resumed normal operation,” Base Build posted on X.

Base’s head of engineering acknowledged the disruption and stated the team is “proud of the quick response” and committed to strengthening infrastructure to prevent future failures.

This marks Base’s second major outage since launch, underscoring concerns about the reliance on centralized sequencers.

Leaked Proposal Hints at MetaMask and Stripe Stablecoin Launch

A now-deleted governance proposal has revealed that MetaMask may be developing a new stablecoin called mmUSD in partnership with payments giant Stripe. The disclosure, which surfaced on Aave’s governance forum, described mmUSD as a dollar-pegged token designed to serve as the foundational asset across MetaMask’s suite of services, including wallet functions, swaps, buying and selling, and earning features.

The proposal, posted by Aave DAO delegate TokenLogic, outlined plans to integrate mmUSD into Aave V3 markets on Ethereum and Linea. It also noted that the stablecoin would use the M^0 network for fully onchain minting and redemption.

“mmUSD is intended to be the cornerstone asset of the MetaMask ecosystem,” the post read, before it was swiftly removed. Aave Chan Initiative founder Marc Zeller confirmed the post’s authenticity but said the release was “too soon.”

Neither MetaMask nor Stripe has officially commented on the proposal or the potential launch.

CZ Seeks Dismissal of FTX’s $1.8 Billion Clawback Lawsuit

Former Binance CEO Changpeng Zhao is seeking to dismiss a $1.8 billion lawsuit filed by the FTX bankruptcy estate, arguing the case lacks U.S. jurisdiction and misrepresents Binance’s role in FTX’s downfall. The lawsuit centers on a 2021 share repurchase agreement, which FTX claims was funded with misappropriated customer assets.

Filed in Delaware, the motion asserts that the deal occurred entirely offshore, involving entities based in the British Virgin Islands, Ireland, and the Cayman Islands. Zhao’s legal team stated, “The statutes at issue, which lack extraterritorial application, do not even apply.” 

FTX alleges that the repurchase was executed despite the company’s insolvency. Zhao’s defense counters that he was not a recipient of the funds and merely served as a “nominal counterparty.”

Addressing claims that his social media posts contributed to FTX’s collapse, Zhao argued the exchange was already “a fraudulent enterprise” and compared the accusation to blaming a whistleblower for revealing a Ponzi scheme.

CFTC Pushes Forward Plan to Permit Spot Crypto Trading on Regulated Exchanges

The U.S. Commodity Futures Trading Commission is advancing efforts to authorize spot crypto asset trading on federally registered exchanges. As part of its “Crypto Sprint” initiative, the agency is seeking public input on listing and regulating spot crypto contracts through designated contract markets.

Acting CFTC Chair Caroline Pham stated, “The CFTC is full speed ahead on enabling immediate trading of digital assets at the federal level in coordination with the SEC’s Project Crypto.”

Spot crypto asset contracts would be designed to reflect live market prices and trade under futures-style structures on CFTC-supervised platforms. The initiative follows recommendations from the Trump administration’s Working Group on Digital Asset Markets, which outlined 18 regulatory priorities.

Bitcoin Volatility Hits Record Low as Strategy Makes Massive Purchase

Bitcoin’s volatility has dropped to historic lows just as Strategy, led by Michael Saylor, completed its third-largest BTC acquisition. 

According to Bloomberg ETF analyst Eric Balchunas, Bitcoin’s 90-day rolling volatility recently fell below 40 for the first time, down from over 60 when spot ETFs launched. “Since BlackRock filing Bitcoin is up like 250% with much less volatility,” Balchunas posted on X.

Fueling the price stability are consistent ETF inflows from institutional investors, which have created steady demand and helped dampen dramatic price swings. Bybit data shows implied volatility dropped as low as 28% in June, while realized volatility hovered between 22% and 25%.

Amid this environment, Strategy purchased 21,021 BTC worth $2.46 billion between July 28 and August 3. The firm funded the buy using common stock and a novel Stretch Preferred Stock (STRC), which mimics stablecoin mechanics. Strategy now holds 628,791 BTC, valued at more than $71 billion.

Arkham Uncovers $15 Billion Bitcoin Theft From Chinese Mining Pool

Blockchain analytics firm Arkham Intelligence has revealed a massive bitcoin heist dating back to December 2020, involving the theft of 127,426 BTC—now valued at nearly $15 billion—from Chinese mining pool LuBian. At the time, the stolen funds were worth approximately $3.5 billion, making it one of the largest crypto thefts ever recorded by dollar value.

According to Arkham, LuBian was first compromised on December 28, 2020, with over 90% of its bitcoin reserves drained. A second breach occurred the following day, targeting an address on the Bitcoin Omni layer. Arkham believes the attacker may have exploited a flaw in the algorithm LuBian used to generate private keys, making them vulnerable to brute-force attacks.

Messages sent from LuBian via Bitcoin’s OP_RETURN field pleaded for the return of assets, referring to the recipient as a “whitehat.” The attacker has not moved the stolen BTC since July 2024.

CurveDAO Proposal Calls for Halt on New Layer 2 Deployments

A new governance proposal within CurveDAO is calling for an end to future deployments of the decentralized exchange on additional Ethereum layer 2 networks. Submitted by member phil_00Llama, the proposal argues that current layer 2 expansions generate minimal revenue while demanding significant developer resources.

Curve is currently live on about 25 chains, yet its Ethereum mainnet pools generate approximately 450 times more revenue than all layer 2 deployments combined. “On a slow day, L2s bring in only about $1,500 across the board,” phil_00Llama noted, recommending a shift in focus toward expanding scrvUSD, Curve’s Ethereum-based stablecoin.

While the suggestion has yet to see broad community engagement, it reflects growing scrutiny over the cost-benefit balance of multi-chain strategies.

China Advances Stablecoin Ambitions Through Hong Kong Licensing Framework

China is preparing to launch its first stablecoins through Hong Kong, signaling a strategic move to internationalize the renminbi and counter the dominance of U.S. dollar-backed tokens. According to the Financial Times, the effort will proceed under Hong Kong’s new Stablecoins Ordinance, which took effect on August 1 and requires issuers to secure licenses from the Hong Kong Monetary Authority (HKMA).

While crypto trading remains banned on the mainland, Hong Kong serves as China’s experimental hub. The HKMA plans to issue a limited number of licenses, focusing initially on business-to-business applications.

Officials remain cautious, citing risks of capital outflows and money laundering. However, interest is growing among Chinese state-owned enterprises, several of which are expected to apply for stablecoin licenses. The HKMA has not ruled out approving tokens backed by offshore renminbi.

Fun Bits: Coinbase’s Musical Gets Censored, But the Beat Goes On

Coinbase dropped a satirical musical ad in the UK titled “Everything Is Fine” — and it was so fine that British TV networks banned it. 

The cheery jingle praises spotless streets and affordable groceries, while showing rats, flooded ceilings, and £100 fish fingers. Naturally, viewers were not amused. 

CEO Brian Armstrong called the censorship proof that “the truth hurts,” adding, “If you can’t say it, then there must be a kernel of truth in it.” Critics called it political. Coinbase called it poetic. Either way, the UK may have banned the song, but crypto Twitter’s got it on repeat.

Watch the weekly recap on YouTube!