Trump Signs Orders on Crypto Banking and 401(k) Access

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Good Morning.

Regulatory shifts, Wall Street blockchain pilots, and fresh venture capital point to crypto’s deeper integration into mainstream finance.

In Today's Email:

• What Matters: Trump Signs Orders on Crypto Banking and 401(k) Access ✍️ 

• Founders Highlight: Bhanu Kohli & Tarun Mistry of Rail 👨 

• Governance & Features: Euphoria Raises $7.5M 💰️ 

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WHAT MATTERS

Trump Signs Orders on Crypto Banking and 401(k) Access

State of play: President Trump signed two executive orders advancing his pro-crypto agenda. The first order targets “unfair debanking” of crypto firms by prohibiting regulators from using “reputational risk” as a factor in bank oversight.

• It directs agencies like the Fed, OCC, and FDIC to remove such policies, respond to industry complaints linked to “Operation Choke Point 2.0.”

• The order also directs the investigation of potential violations of credit and consumer protection laws.

• Lawmakers, including Rep. French Hill and Sen. Cynthia Lummis praised the move as a safeguard against politically motivated financial discrimination.

The second order directs the Labor Department, SEC, and Treasury to enable cryptocurrency, private equity, and other alternative assets in 401(k) retirement plans.

• It encourages revising regulations to broaden accredited investor definitions, expand access, and promote prudent integration into retirement plans.

Why it matters: The actions mark a continued shift from restrictive Biden-era policies toward a more open framework for digital asset adoption.

Our take: Dropping “reputational risk” could ease banking for crypto, while 401(k) access pushes digital assets toward the mainstream. Impact hinges on how agencies follow through.

For builders and investors: Banking may get easier and retirement plans could bring new capital. Prepare compliant, institution-ready products and watch for regulated investment channels.

BUILDER-INVESTOR HIGHLIGHT

Bhanu Kohli & Tarun Mistry of Rail

Intro: Bhanu Kohli & Tarun Mistry are the Co-Founders of Rail, a platform that compliantly connects the best of fiat and stablecoin payments so you can move money fast, save costs, and build to grow.

Previous background: Before Rail, Bhanu co-founded and led PlatformZero at Capco, later acquired by Wipro, and headed Capco Canada’s Digital & Engineering practice, driving major bank and insurer transformations.

• He earlier co-founded healthcare consultancy Coremotive (acquired by CTC) and held senior consulting roles at Capco and BearingPoint.

Before Rail, Tarun spent nearly 20 years in tech architecture and digital transformation, founding X-Lab and Mistry Solved to deliver large-scale banking and exchange projects.

• He led architecture for major Canadian banks, TMX Group, and global firms like Deloitte, BT, and Accenture.

The big idea: Bhanu and Tarun founded Rail to solve a fundamental problem: global payments are slow, expensive, and unreliable, and legacy infrastructure isn't keeping up with the pace of business.

Take a peek at our referral reward at the bottom of this issue. Share this newsletter and receive our list of 500 crypto VC individuals 👇

INSIGHTS

JPMorgan Debuts Onchain Intraday Repo on Kinexys

JPMorgan has launched an onchain intraday repo solution on its Kinexys blockchain, enabling repo traders to swap cash held at the bank for securities on the HQLAx platform via blockchain deposit accounts.

• Built with HQLA-X and Ownera, the tool supports minute-level settlement, full repo lifecycle management, and p2p connectivity through the FinP2P protocol.

• It is already handling up to $1B in daily trades.

• The platform is designed for industry-wide scalability, with potential expansion to stablecoins, deposit tokens, and CBDCs.

DEAL FLOWS

Euphoria Raises $7.5M for MegaETH Derivatives App

Deal flows soared this week - we saw $114M in deals 💼 

Euphoria, a mobile-first crypto derivatives trading platform built on MegaETH, has raised $7.5M in seed funding from over 100 investors, including Karatage, Figment Capital, Robot Ventures, and prominent angels like Kain Warwick and Santiago Santos.

• The app aims to simplify options and perpetual trading with a “tap trading” interface, targeting mainstream adoption.

• Revenue will come from market-making and trading fees.

• The mainnet launch is planned later this year, and a native token is in the long-term roadmap.

Deal flows in the past week:

• Kuvi AI, $700K Seed Round

• Euphoria, $7.5M Seed Round

• Perle, $9M Seed Round

• Rialo, $20M Seed Round

• STAN, $8.5M Series A Round

• SuperGaming, $15M Series B Round

• Bayes Market, $2M Strategic Round

• BOB, $9.5M Strategic Round

• MANTRA, $20M Strategic Round

• AIxBlock, $1.73M Grant

• OpenMind, $20M Infrastructure Round

QUICK BITES

• Chainlink launches strategic LINK reserve.

• Paxos settles $48.5M over Binance BUSD partnership.

• Ethereum daily txs reach new high, surpassing 2021 peak.

• SharpLink to sell additional $200M worth of stock to buy ETH.

• SEC, Ripple to end legal battle as both parties abandon appeals.

• S&P Global gives Sky Protocol 'B-' credit rating, citing centralization.

• World Liberty Financial plans loyalty points program for USD1 users.

• Trump picks crypto-friendly economist for Federal Reserve board seat.

• Trump signs executive order allowing 401(k) plans to include digital assets.

• President Trump signs executive order to stop 'debanking’ of crypto industry.

• Spot BTC ETFs return to net inflows with $91.5M after four-day outflow streak.

NOTEWORTHY READS & MEME

• John Wang’s read on The Human Premium.

• Frax’s read on FraxNet: The Fat Stablecoin Thesis.

• Mary’s read on Hyperliquid: The Economics of Trust.

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.