Lummis Amendments Fail as Senate Drops Crypto Tax Breaks
While I was off checking Wrigley Field off my bucket list (Guardians lost, but what a ballpark), Kyle went full Democratic Socialist in my absence. Now that I’m back, we’ve got a lot to talk about, from Peter Thiel’s new crypto bank to the tokenization of private equity, shady ransomware middlemen, and a stablecoin theory that might just end the Fed.
"Isn't that what we should be doing — not just looking at how much they're holding, but asking, how much can I have too?"
🏦 Silicon Valley Billionaires Launch SVB-Style Bank for Crypto & AI Startups
🦛 Moo Deng Surges After Pygmy Hippo Birthday Party Goes Viral
⚖️ Robinhood Faces Backlash Over Tokenized Stocks Push
💻 U.S. Probes Ex-Ransom Negotiator Accused of Working with Hackers
💵 Arthur Hayes: Stablecoins Are Trojan Horse to Fund U.S. Debt
📉 Trader Cobb & Market Training via The Grow Me Co
Capital Markets and Comrade Kyle
During my short vacation, Kyle’s commentary stirred up some ideological sparks. He questioned MicroStrategy's aggressive Bitcoin accumulation, suggesting a form of economic centralization. Let me be clear: that's the free market working. If Michael Saylor’s strategy blows up, I only ask that those Bitcoin holdings make it back to the market — not the hands of the government.
“Isn't that the capital market? Isn’t that the market? Isn’t that the free market?”
The Big, Ugly Bill and Crypto’s Absence
The massive federal bill on everyone’s radar failed to include any meaningful crypto amendments. Senator Cynthia Lummis tried to push for tax deferrals on staking and mining, plus exemptions for small purchases under $300 — all of which were left on the cutting room floor. Same with the Democratic amendment to ban crypto profits for high-level government officials.
“This big, beautiful bill is so beautiful for crypto as nothing was put in there for crypto.”
This isn’t serious policymaking — it’s grandstanding. We see you.
Peter Thiel's Bank for Degens
Peter Thiel, Palmer Luckey, and the Founders Fund are launching a crypto-focused bank called Erebor, named after a Dwarven stronghold from The Hobbit (nerds, assemble). Erebor will target crypto, AI, and defense startups — especially those underserved by traditional banks. They’ve applied for a national charter and plan to hold stablecoins on their balance sheet.
“Nerds are gonna nerd.”
If successful, this could fill the vacuum left by Silicon Valley Bank’s collapse.
Tokenized SpaceX and OpenAI? Robinhood's Gambit
Robinhood has rolled out tokenized stocks for SpaceX and OpenAI — which are not public companies — available only in Europe. These synthetic assets let retail investors track valuations through tokenized contracts on Arbitrum. Elon Musk called it “fake equity,” and OpenAI has officially disavowed them.
“You can like these products... but you can't buy equity. You can't even get exposure.”
Despite criticism, Robinhood is lowering barriers for average investors. That’s a win in my book.
Ransomware Negotiators Under Investigation
The DOJ is investigating a former Digital Mint employee who allegedly profited from ransomware negotiations. Digital Mint, which has managed over 2,000 cases, says the individual acted alone. Sure they did.
“Let me carve off a half a million, and we call it a day.”
The structure of this industry makes it vulnerable to this kind of corruption. This likely isn't an isolated incident.
Arthur Hayes Thinks Stablecoins Might Kill the Fed
BitMEX co-founder Arthur Hayes wrote that the Genius Act could allow banks like JPMorgan to issue stablecoins backed by U.S. treasuries — effectively injecting liquidity into markets without involving the Fed. This could support a growing stablecoin market projected to hit $4 trillion in a decade.
“Maybe this is the core of the beef between Jerome Powell and the Trump administration.”
If Hayes is right, the stablecoin system might be the backdoor to sidelining the Fed. That’s a revolutionary idea worth considering.
Moo Deng’s Birthday
Thailand’s pygmy hippo Mu Dung is turning one. To celebrate, a zoo is opening its doors for free. The associated meme coin jumped 32%. Gotta love crypto.
“Moo Deng the meme coin... number go up like 30%.”
My Take
Kyle’s socialist detour aside, I’m all for free markets — messy as they are. I think Cynthia Lummis and the Democrats both knew their crypto amendments wouldn’t pass; it was all for show. Thiel’s bank? A smart play. Robinhood’s tokenization? It’s about damn time retail gets a shot at growth companies. The Digital Mint situation? Obvious grift. And Arthur Hayes? He may sound tinfoil-hatty sometimes, but he might be on to something big about stablecoins and sovereign finance.
Listener Questions
Phil asks:
“A competing podcaster said geopolitics isn't as much of an influence on crypto as global liquidity. Thoughts?”
Both are true. The capital is there, sloshing around, ready to move. But if the world’s on fire — wars, sanctions, regime changes — nobody’s throwing money into risk assets like crypto. Geopolitics locks up the liquidity. We're seeing that in real time.
“You don’t just bomb another country... and go, ‘Let’s ape into a risk asset.’”
Crypto Prices
Bitcoin: $110,412
Market Cap: $2.195 trillion
24h: +2.55%
Ethereum: $2,633
Market Cap: $317.7 billion
24h: +7.6%
XRP: $0.229 (+5.4%)
BNB: $664 (+1.0%)
Solana: $154 (+3.6%)
Tron: $0.284 (+1.0%)
Dogecoin: $0.174 (+7.9%)
Litecoin: $91.41 (+7.8%)
Moo Deng: $0.187 (+32.3%)
Total Market Cap: $3.4 trillion (+2.8%)
Happy HODLing, Everyone.
The opening track + "Comrade Kyle" absolutely sent me this morning. 😂