The Fed’s Fine With It 🪙 👍
Plus, 🔮 Robinhood teases futures, 😚 Coinbase boosts Trump ties, 📈 SEC moves on Litecoin ETF, and more!
Hi hi hi! I’m Juan Aranovich, managing editor of Unchained.
In today’s edition:
🏦 Be cool with crypto, Powell tells banks
📈 Robinhood’s futures rollout
🤝 Coinbase brings on a Trumper
🔍 SEC lines up Litecoin ETF review
🏛️ Operation Chokepoint 2.0: No smoking gun
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What’s Poppin’?
By Veronica Irwin and Tikta
Banks ‘Perfectly Able’ to Serve Crypto Customers, Fed Chair Says
Federal Reserve Chair Jerome Powell said on Wednesday that banks are "perfectly able" to service crypto customers, provided they understand and manage the associated risks effectively.
He said the Fed does not support actions leading to the debanking of lawful crypto users, and advocated for banks to continue serving those customers.
“We’re not against innovation, and we certainly don’t want to take actions that would cause banks to terminate customers who are perfectly legal just because of excess risk aversion, maybe related to regulation and supervision,” Powell said.
Powell’s remarks come after a two-day Federal Open Market Committee meeting at which committee members kept the Fed’s benchmark overnight interest rate unchanged at 4.25% to 4.5%.
Robinhood Teases BTC, ETH Futures
Retail trading platform Robinhood has started rolling out a product that will offer futures trading for Bitcoin and Ether, alongside the S&P 500, crude oil, and gold.
The introduction of futures trading is part of Robinhood's strategy to diversify its services beyond stocks and spot crypto trading, which it launched in 2018.
Robinhood's futures will be facilitated through a partnership with CME Group, which is known for its extensive range of futures contracts.
The strategic expansion could set Robinhood up for a new revenue stream. The platform’s low fees could also position it well to take on established crypto players such as Coinbase.
Coinbase Appoints Trump Campaign Co-Manager to Advisory Council
Coinbase has strengthened its connections to the Trump administration by appointing Chris LaCivita, the co-manager of Trump's 2024 election campaign, to its global advisory council.
LaCivita joins former U.S. Senator Kyrsten Sinema, former Federal Reserve Bank of New York President Bill Dudley and former Colombian Ambassador to the U.S. Luis Alberto Moreno on the council.
Coinbase established its global advisory council in 2023 to leverage insights from experienced leaders in various sectors to advance its vision for crypto and blockchain technology.
The exchange’s CEO, Brian Armstrong, last week described Donald Trump's return to the presidency as a potential turning point for the crypto sector, marking what he termed "the dawn of a new day" for digital currencies.
SEC Moves to Next Stage on Litecoin ETF
The U.S. Securities and Exchange Commission on Wednesday took a significant step towards a decision to approve — or deny — the listing of a Canary Litecoin exchange-traded fund by formally acknowledging Nasdaq's 19b-4 application for the ETF.
The acknowledgement marks the first time the SEC has recognized an altcoin ETF application, perhaps indicating a potential shift in its approach to crypto ETFs beyond Bitcoin and Ethereum.
The SEC is now soliciting public comments on the Canary Litecoin ETF proposal, with a submission window of 21 days following its publication in the Federal Register.
Following the acknowledgment of the filing, the SEC has up to 240 days to approve or reject the application for the ETF.
Why the new FDIC Leadership Isn’t Convinced Operation Chokepoint 2.0 Existed
“Operation Choke Point 2.0,” an alleged plan the crypto industry says debanked numerous entities and individuals due to unfair discrimination against the industry, ended with the departure of the Biden administration — at least that’s what industry leaders have been saying on X.
“OCP2.0 is over,” Castle Island Ventures co-founder Nic Carter posted on X last week after a Trump executive order declared an intention to protect fair access to banking.
Several other high-profile X users have expressed similar sentiments publicly.
But the person who currently has the most power to actually reverse the alleged debanking scheme, Acting Federal Deposit Insurance Corporation Chairman Travis Hill, hasn’t seen solid evidence a conspiracy against crypto actually existed, according to sources who have spoken with him about the issue.
Statements he has made on the topic, which many in the industry took as Hill confirming that Operation Choke Point 2.0 existed, were misinterpreted.
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Daily Bits… ✍️✍️✍
🛍️ Donald Trump-branded merchandise stores began accepting TRUMP memecoins via Solana Pay, expanding the token’s real-world utility.
⚖️ U.S. Commerce Secretary nominee Howard Lutnick faced Senate scrutiny over his firm’s role as a Tether custodian, as lawmakers pressed him on the stablecoin’s reserve transparency and alleged use in illicit finance.
🚗 Tesla marked up its bitcoin holdings by $600 million under new accounting rules, reporting its 9,720 BTC at $1.076 billion, despite an overall earnings miss in Q4 last year.
🏦 The Federal Reserve kept interest rates unchanged following three cuts last year, citing a stable labor market and lingering inflation, while markets anticipate potential policy shifts influenced by President Donald Trump’s economic plans.
📱 NFT marketplace Tensor’s social trading app, Vector, will allocate 50% of its revenue to the TNSR treasury, aiming to drive growth for the memecoin sector after pivoting from the declining NFT market.
🔹 Phantom wallet expanded to support layer 1 blockchain Sui, allowing its 15 million users to manage SUI assets, trade tokens, and interact with dApps such as Suilend and Bluefin, marking its first integration of a Move-based chain.
⛏️ Venture fund DCG spun off Fortitude Mining from its Foundry unit, launching a standalone venture that will mine Bitcoin and other proof-of-work tokens while seeking external investors for further expansion.
The $$$ Corner…
🌐 Domain registration startup D3 Global raised $25 million in a Paradigm-led series A to expand Web3 domain infrastructure, with plans to launch Doma Protocol, a decentralized network linking traditional domain extensions with blockchain-based names.
💰 Crypto accounting platform Cryptio secured a $15 million series-A extension with backing from Alven, 1kx, and Ledger Cathay Capital, as it scales infrastructure for TradFi institutions preparing to offer digital asset products.
🔗 Pell Network garnered $6.5 million to develop an omnichain Bitcoin restaking network aimed at enhancing cryptoeconomic security with backing from d11labs, ArkStream Capital, and Web3Port, while also raising $3.5 million for AI-driven DeFi initiatives.
💰 Mevvy closed $2.8 million in a seed round led by Multicoin Capital to simplify maximal extractable value trading, providing a web-based platform that removes technical barriers and supports Ethereum, Sui, and Sei.
🔬 The Sei Foundation launched a $65 million DeSci fund, Sapien Capital, to invest in blockchain-powered scientific research startups building on its layer 1 blockchain over the next four years.
What Do You Meme?
📈 Your Market Update 📉
BTC is up 3.5%, trading at $105,303
ETH is up 4.5%, trading at $3,240
BTC dominance: 56.12%
Crypto market cap: $3.71T
*All data as of today, 08:15 am ET. Source: CoinGecko
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