Zelensky’s suit is causing chaos

This week, we’ve got a double feature.

First up: a $59 million Polymarket bet over whether President Zelensky wore a suit has triggered a firestorm in the crypto prediction world.

Then, Robinhood’s new blockchain, built on the Arbitrum stack, could mark a major milestone in crypto adoption. Offchain Labs CEO Steven Goldfeder joins to explain why Arbitrum was chosen and what tokenized stocks could mean for the future of finance.

A $59 Million Polymarket Bet Has Generated Outrage. What Went Wrong?

Did Ukrainian President Zelensky wear a suit before July 1? A $59 million crypto bet says… maybe.

A $59 million bet on whether Ukrainian President Zelensky would wear a suit has spiraled into one of the most confusing and contentious disputes in crypto prediction markets.

In this episode, Laura speaks with bettor Calvin Hamilton, who’s on the “yes” side of the trade, about why this seemingly silly market could have serious consequences for Polymarket, UMA, and the broader crypto betting ecosystem. From unclear rules to a lack of definitions, and even a market-influencing tweet, Calvin argues the problem isn’t the decentralized oracle… it’s the market itself.

Why the Arbitrum Stack Won in the Race to Support Robinhood Chain

Robinhood’s new move on Arbitrum might be the most important crypto adoption story of the year.

Offchain Labs CEO Steven Goldfeder explains why Arbitrum was chosen by Robinhood to rebuild its core product on crypto rails, what tokenized stocks onchain could unlock, and why we may be entering crypto’s “zero-to-one” phase all over again. 

Listen to the episode 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:

• 📉 Robinhood’s tokenized shares draw heat from Wall Street and OpenAI

• 🏦 Circle and Ripple want bank charters — and U.S. regulators might say yes

• 📊 Solana staking ETF launches, and the volume surprises analysts

• 💸 BlackRock’s Bitcoin ETF out-earns its S&P 500 fund

• 🗳️ Lido stakers gain veto power — and a “rage-quit” button

• ❌ Crypto tax fix gets cut from Trump’s budget bill

• 📈 Tom Lee bets big on ETH with a $250M treasury play

• 😂 Ric Edelman says 40% in crypto is the new safe option

U.S. Finance Lobby and OpenAI Push Back as Robinhood Launches Tokenized Shares

As we covered on the podcast, Robinhood has begun offering quote/unquote tokenized shares of OpenAI and SpaceX to users in the European Union. 

The offering coincided with the company’s shares hitting an all-time high. The tokens are available via Robinhood’s EU crypto app and are not accessible to U.S. users due to regulatory barriers.

But the move has drawn sharp criticism from both the U.S. financial industry and OpenAI itself. The Securities Industry and Financial Markets Association (SIFMA), which represents traditional financial institutions, sent a formal letter to the SEC urging the agency to deny crypto firms exemptions that would allow them to issue tokenized equities. The group warned against allowing firms like Coinbase and Kraken to bypass public review through no-action or exemptive relief requests. SIFMA argued that such decisions require a “robust public process” and transparency, citing concerns around investor protections, regulatory oversight, and market integrity.

At the same time, OpenAI issued a public statement disavowing Robinhood’s “OpenAI tokens.” The company stated that the tokens were not authorized, do not represent actual equity, and were issued without OpenAI’s involvement or consent. “Any transfer of OpenAI equity requires our approval—we did not approve any transfer,” the company wrote on X, warning users to be cautious.

Robinhood responded by clarifying that the tokens reflect indirect exposure through a special purpose vehicle (SPV) that holds equity on behalf of investors, a common structure in private markets. While not traditional shares, the SPV route allows retail users to gain partial exposure to high-profile private companies like OpenAI.

Circle and Ripple Apply for U.S. Bank Charters as Stablecoin Oversight Tightens

Stablecoin issuers Circle and Ripple have filed applications for national bank charters with the U.S. Office of the Comptroller of the Currency (OCC), positioning themselves for federal oversight amid changing regulatory conditions.

Circle submitted its application on June 30, seeking to establish the First National Digital Currency Bank, N.A. The charter would place Circle under direct OCC supervision and support its ongoing role as the issuer of USDC, the second-largest stablecoin with more than $61 billion in circulation. If approved, Circle would also be able to offer custody services for tokenized assets, including blockchain-based representations of traditional securities.

Ripple followed on July 2 with a similar application. The company’s filing comes as it continues to expand the use of its RLUSD stablecoin and aims to bring both federal and state regulatory coverage under the OCC and New York’s Department of Financial Services. Ripple has also applied for a Federal Reserve master account, which would allow it to hold RLUSD reserves directly with the central bank.

Chris Perkins, President of the crypto-native venture capital firm CoinFund, told Unchained via email, “It’s been absolutely fascinating how Ripple has been acquiring licenses. I think they’re a force to be reckoned with. They’re putting together all the elements to build a very successful and scalable stablecoin in RLUSD.”

Both moves follow recent progress on the GENIUS Act, federal legislation designed to establish regulatory standards for stablecoin issuers, which is expected to be signed into law this summer

Solana Staking ETF Launches With $33 Million in First-Day Volume

The Rex-Osprey Solana + Staking ETF began trading Wednesday, becoming the first U.S.-listed exchange-traded fund to combine direct Solana exposure with onchain staking. The fund recorded approximately $33.6 million in trading volume and $12 million in net inflows on its first day.

Roughly 80% of the ETF’s assets are allocated to spot Solana (SOL), with more than half of that portion staked to generate staking rewards. The portfolio also includes positions in other Solana-related exchange-traded products and a small allocation to liquid staking tokens such as JitoSOL.

The ETF is structured as a C-corporation and regulated under the Investment Company Act. Anchorage Digital, a federally chartered crypto bank, serves as custodian and manages staking operations for the fund’s assets.

Bitcoin ETF Outpaces S&P 500 Fund in Revenue for BlackRock

BlackRock’s iShares Bitcoin Trust (IBIT) has surpassed its long-standing iShares Core S&P 500 ETF (IVV) in annual revenue generation, marking a milestone in the growing institutional embrace of digital assets. 

As of July 1, IBIT generates an estimated $187.2 million in annual fees, narrowly overtaking IVV’s $187.1 million despite IVV being nearly nine times larger in assets under management.

Launched in January 2024, IBIT has amassed approximately $75 billion in assets, fueled by consistent inflows from both institutional and retail investors. The fund has seen net inflows in 17 of the last 18 months, capturing $52 billion of the $54 billion that has entered all U.S. spot Bitcoin ETFs combined.

“IBIT overtaking IVV in annual fee revenue is reflective of both the surging investor demand for Bitcoin and the significant fee compression in core equity exposure,” said Nate Geraci, president of NovaDius Wealth Management.

Lido DAO Approves Dual Governance

Lido DAO has adopted a new dual governance model that gives stETH holders the ability to veto proposals passed by LDO token holders. The system, approved with near-unanimous support, introduces a formal objection mechanism aimed at protecting ETH stakers from governance decisions they may oppose.

Under the mechanism, stETH holders can deposit their tokens into an escrow contract to signal dissent. If the total reaches 1% of all ETH staked via Lido, the related proposal is delayed for five days. If dissent rises to 10%, the protocol enters a “rage-quit” state that halts further proposal execution until the dispute is addressed.

This governance structure introduces a direct check on the authority of LDO token holders, enabling stakers to actively participate in safeguarding the protocol’s direction. The change is part of a broader effort to strengthen alignment between stakeholders.

We covered this topic in detail on Tuesday’s episode of Unchained with Hasu and Vasiliy Shapovalov.

Crypto Tax Amendment Fails to Advance in Senate Budget Bill

A proposal to ease cryptocurrency tax rules was excluded from the sweeping budget legislation passed by the U.S. Senate on Tuesday. The bill, known as the “One Big Beautiful Bill,” narrowly passed with Vice President J.D. Vance casting the tie-breaking vote, but did not include an amendment backed by Senator Cynthia Lummis aimed at reforming digital asset taxation.

Lummis had proposed a capital gains tax exemption for crypto payments under $300, along with a $5,000 annual cap on qualifying transactions. The amendment also sought to defer taxation on staking and mining rewards until they are sold, rather than when they are received. Despite late efforts from the digital asset sector, the amendment was not brought to a vote.

On Thursday, Senator Lummis introduced a standalone crypto tax bill, reviving her failed attempt to attach it to Trump’s omnibus proposal.

Tom Lee Joins BitMine as Chairman Amid $250 Million Ether Treasury Push

Wall Street strategist and Fundstrat co-founder Tom Lee has been appointed Chairman of BitMine Immersion Technologies, as the company raises $250 million to build a major ether (ETH) treasury. The move signals a strategic pivot for BitMine, traditionally known for its bitcoin mining operations.

The financing round, structured as a private placement at $4.50 per share, drew support from firms including Founders Fund, Pantera Capital, Kraken, and Galaxy Digital. BitMine said it will use the funds to accumulate ETH as its primary treasury asset and participate in onchain activities such as staking.

Lee described the initiative as aligning with the broader shift toward Ethereum-based infrastructure, particularly in areas like stablecoins and tokenized finance. The company will track ether per share as a key metric, mirroring MicroStrategy’s bitcoin-focused model.

Shares of BitMine surged over 200% following the announcement. Once the deal closes, the company expects to become one of the largest public holders of ETH.

Judge Allows Celsius $4 Billion Bitcoin Lawsuit Against Tether to Proceed

A U.S. bankruptcy judge has ruled that Celsius’ $4 billion lawsuit against Tether can move forward, rejecting key parts of Tether’s attempt to dismiss the case. The dispute centers on Celsius’ claim that Tether prematurely liquidated 39,500 bitcoin used as loan collateral during the June 2022 crypto market crash.

Celsius alleges Tether sold the assets before honoring a contractually required 10-hour delay and at an average price of $20,656, below the prevailing market rate. 

Tether had argued that jurisdictional issues should disqualify the case, citing the companies’ offshore registrations. However, Judge Martin Glenn found sufficient ties to the U.S., including American-based accounts and systems, to let the case proceed.

The court did dismiss some subsidiary-based claims, but Celsius can continue pursuing its core allegations. Tether previously called the lawsuit “baseless” and claimed it had acted under instructions from Celsius.

Fun Bits: Ric Edelman Says Go Full Crypto — And Then Some

Remember when 1% in crypto felt like jumping out of a plane without a parachute? Well, Ric Edelman just handed everyone a wingsuit and said, “Try 40%.”

Yes — the guy who once whispered “maybe just a sliver of Bitcoin” is now out here telling conservative investors to go 10%, and aggressive ones to YOLO nearly half their portfolio into crypto. Somewhere, a Vanguard exec just dropped their chamomile tea.

Edelman claims it’s safer now than that baby 1% back in 2021. Why? Because apparently, when the government doesn’t want to ban crypto and banks want to hold it for you, that’s a green light.

He’s not picky either… BTC, ETH, altcoins, NFTs of penguins doing yoga, your call.

And for the skeptics still clutching gold bars in their bunkers? Edelman says: crypto brings in clients, referrals, and more AUM.

Watch the weekly recap on YouTube!