The Protocol: Ethereum’s Vitalik Buterin Says the Ecosystem Is At Risk If Decentralization Is Just a Catchphrase

In this issue:

Vitalik Buterin: Ethereum at Risk If Decentralization Is Just a Catchphrase
Bitcoin Layer-2 Botanix Mainnet Debuts, Cuts Block Times to 5 Seconds
XRPL EVM Sidechain Goes Live, Unlocking Ethereum Dapps in XRP Ecosystem
Securitize, RedStone Pilot ‘Trusted Single Source Oracle’ to Secure Tokenized Fund NAVs

Network News

In Other News

Digital brokerage Robinhood (HOOD) has a slate of new crypto offerings, including its own blockchain network based on Arbitrum and tokenized stock trading. The firm this week debuted its stock token offering, issued on the Ethereum layer-2 Arbitrum, for European users, giving access to over 200 U.S. equities and ETFs with around-the-clock trading during weekdays. With the launch, Robinhood is expanding its crypto-focused EU app with tokenized stocks into an “all-in-one investment app powered by crypto,” the company said. The firm also confirmed it’s building its own layer-2 blockchain network optimized for tokenized assets. The chain will support 24/7 trading, self-custody and cross-chain bridging of tokenized assets. A release date has not been disclosed, but persons familiar with the matter said it could go live later this year or early next year. — Krisztian Sandor Read more.
Deutsche Bank (DB) is planning to debut a crypto custody service next year, Bloomberg first reported. Germany’s largest bank has enlisted cryptocurrency exchange Bitpanda to help build the offering, according to the report, citing people familiar with the matter. DB’s involvement in crypto custody to now has been largely through Swiss custodian Taurus, of which the bank is both an investor and a client. It is not clear how this relationship would develop should DB begin its own service in-house. The bank’s other recent crypto initiatives have been concentrated in stablecoins, with its asset management subsidiary DWS planning to issue a euro stablecoin as part of a joint venture with Flow Traders and Galaxy (GLXY). — Jamie Crawley Read more.

Regulatory and Policy

With the U.S. Senate’s passage of the bill meant to carry forward the bulk of President Donald Trump’s policy agenda, last-minute changes to the One Big Beautiful Bill didn’t include a proposal to clarify and ease crypto taxation. Though Senator Cynthia Lummis had advocated changes to the U.S. approach to taxing cryptocurrency transactions, including waiving capital-gains taxes on small-scale activity, it wasn’t among the amendments to the bill that narrowly passed on a 50-50 vote on Tuesday in which Vice President J.D. Vance had to step in to break the tie. Senators had worked through the night Tuesday debating amendment after amendment, most of which failed, on their way toward a Republican success. But Lummis’ amendment wasn’t among them, despite 11th-hour lobbying efforts from the digital assets industry. — Jesse Hamilton Read more.
New York Attorney General Letitia James sounded the alarm on the U.S. Senate’s stablecoin bill, warning Congress on June 30 that GENIUS Act — at least as it currently stands — “do[es] not contain the necessary guardrails to protect the American public.” In an eight-page letter, James urged Congress to slow down its efforts to pass stablecoin legislation and “take the time necessary to draft legislation that will enhance innovation while protecting our banking system that is the envy of the world.”— Cheyenne Ligon Read more.