Today in Crypto: Robinhood Eyes Tokenized Securities, Ethereum Launches Pectra Upgrade, and Democrats Target Trump’s Crypto Ventures

Robinhood Prepares to Revolutionize European Markets with Blockchain for Tokenized Securities

In a move that could reshape how Europeans access US markets, brokerage giant Robinhood is reportedly building a blockchain-based infrastructure designed to facilitate the trading of tokenized US securities in Europe. The development, first reported by Bloomberg on May 7, reflects Robinhood’s strategic pivot toward digital asset innovation and its ambition to expand its presence across the European Union.

The blockchain initiative would enable the trading of tokenized versions of traditional financial instruments—such as stocks—on a decentralized ledger. Tokenization, which transforms real-world assets into digital tokens, promises faster settlements, lower transaction costs, and increased market accessibility, especially for retail investors.

Sources indicate that Robinhood is in discussions with notable crypto infrastructure players, including Arbitrum and the Solana Foundation, to collaborate on this blockchain venture. If successful, it could challenge the dominance of traditional brokerages and exchanges by leveraging blockchain's inherent efficiency and transparency.

This is not Robinhood’s first step into the European financial space. In April 2025, the company secured a brokerage license in Lithuania, granting it regulatory approval to operate throughout the EU under MiFID II. The move follows Robinhood’s 2024 acquisition of crypto exchange Bitstamp, signaling its commitment to integrating crypto-native solutions with conventional finance.

This development underscores a larger trend within the financial industry where tokenized assets are becoming a focal point for innovation. Institutional interest in asset tokenization has grown rapidly, with companies aiming to modernize trading infrastructure and democratize access to investment opportunities across borders.

Ethereum Pectra Upgrade Goes Live: Ushering in Smart Accounts and Network Scalability

Ethereum has officially launched its much-anticipated Pectra upgrade, marking another milestone in the network’s evolution. Activated on May 7, 2025, at epoch 364032, Pectra introduces key Ethereum Improvement Proposals (EIPs) that enhance usability, staking flexibility, and scalability across the ecosystem.

Source: Ethereum.org

Key Features of the Pectra Upgrade:

• EIP-7702: One of the most impactful additions, this proposal allows externally owned accounts (EOAs)—essentially traditional user wallets—to temporarily behave like smart contracts during transactions. This change enables users to pay gas fees using tokens other than Ether, paving the way for "smart accounts" with customizable logic and improved flexibility for DeFi and wallet applications.

• EIP-7251: Raises the staking limit per validator node from 32 ETH to a new cap of 2,048 ETH. This update is particularly beneficial for institutional and large-scale validators, who will now be able to consolidate their operations, simplifying infrastructure and potentially boosting network security.

• EIP-7691: Enhances Ethereum's data throughput by increasing the number of “blobs” (data chunks) per block. This change directly supports Layer 2 scaling solutions like rollups, which rely on data availability within Ethereum blocks. The result? Reduced congestion and lower transaction fees across the network.

Sergej Kunz, co-founder of decentralized exchange aggregator 1inch, praised the Pectra upgrade, stating that it introduces advanced functionality at the protocol level while significantly improving Ethereum's capacity to support high-throughput applications.

With Pectra now live, Ethereum continues to solidify its position as the leading smart contract platform by addressing some of the major challenges users and developers face—namely high fees, limited flexibility, and scalability concerns.

Democrats Target Trump’s Crypto Business Empire in New Legislative and Investigative Blitz

In a high-stakes political move, Democratic lawmakers in the United States have launched a coordinated effort aimed at curbing former President Donald Trump’s ability to profit from cryptocurrency ventures while seeking public office. The initiative includes two bills and a formal Senate investigation, revealing growing concern over the intersection of politics, power, and digital assets.

Legislation: The MEME Act

Senator Chris Murphy unveiled the Modern Emoluments and Malfeasance Enforcement Act (MEME Act) on May 6, 2025. The legislation aims to prevent federal officials, including the president, vice president, members of Congress, and senior executive branch officials—as well as their immediate family members—from issuing, promoting, or profiting from cryptocurrencies or other digital assets.

The MEME Act specifically targets memecoins, a category of often satirical or speculative crypto tokens that have become a hotbed for celebrity endorsements and political branding. Murphy emphasized the importance of drawing a legal line between public service and personal financial enrichment, particularly in an era where crypto markets can be easily swayed by high-profile figures.

Representative Sam Liccardo introduced a companion bill in the House of Representatives. However, with Republicans currently in control of both the House and the Senate, the passage of either bill would require significant bipartisan support—a tall order in today’s polarized political climate.

Senate Investigation into Trump-Linked Crypto Ventures

In parallel, Democratic Senator Richard Blumenthal, the ranking member of the Permanent Subcommittee on Investigations (PSI), announced the launch of a preliminary inquiry into several Trump-affiliated digital asset initiatives. These include the Official Trump (TRUMP) token, a cryptocurrency widely promoted by Trump supporters, and World Liberty Financial (WLFI), a platform purportedly backed by the former president and tied to fundraising and digital asset sales.

The investigation will explore whether these ventures violate ethics rules, campaign finance laws, or securities regulations. Blumenthal stated that the subcommittee would examine “potential conflicts of interest, self-enrichment schemes, and the broader implications of political figures leveraging blockchain technologies for personal gain.”

Conclusion

Today’s developments in the crypto space underscore the rapid pace of innovation—and controversy—sweeping across digital finance. Robinhood’s move into tokenized securities trading marks a new frontier for blockchain integration in traditional finance. Ethereum continues to evolve with its Pectra upgrade, enhancing both performance and user experience. Meanwhile, the political spotlight intensifies as lawmakers seek to define ethical boundaries in an increasingly crypto-savvy political environment.