The Weekly Validation
May 19, 2025
Welcome to The Weekly Validation. This newsletter will bring you the most important news affecting the digital asset markets.
We’ll answer the three most important questions:
We’ll answer the three most important questions:
- What happened?
- And how does it affect you?
- And, for an educational component - what are we even talking about?
📊 Markets This Week.
The markets were only up slightly, but bitcoin is very close to crossing its all time high of $109,026.02.
Bitcoin (BTC)
$106,408.37 (+2.30%)
Ethereum (ETH)
$2,495.12 (-0.62%)
Solana (SOL)
$173.37 (+0.30%)
Robinhood Acquires WonderFi
✅ What happened
Robinhood is acquiring WonderFi, a Canadian crypto platform, to expand its crypto services internationally and deepen its crypto product offering (including a Layer 2🧠).
💡 Why it matters
- WonderFi brings infrastructure and licenses that Robinhood can use to launch new crypto features faster — like wallets, swaps, or DeFi access.
- It positions Robinhood to become a global crypto app, not just a U.S. trading platform, and signals they’re serious about building beyond basic coin buying.
🔥 Hot Take
This deal isn’t just about customer acquisition — it’s a bet on Ethereum. WonderFi operates its own blockchain, an Ethereum Layer 2. That means Robinhood is now an L2 owner. If they lean in, it could mean they are copying Coinbase’s extremely profitable Base network, also an Ethereum Layer 2.
🧠 Wait, what is a Layer 2?
An Ethereum Layer 2 is like an express lane built on top of Ethereum — it processes transactions faster and cheaper, then settles back to Ethereum’s main network. It allows for customizability for the owner, but keeps the security properties of Ethereum. Coinbase built one (called Base), and now Robinhood kind of owns one too. I say “kind of” because it currently has almost no activity. Lets see if Robinhood has plans to change that.
Bipartisan Stablecoin Legislation Back on Track
✅ What happened
The U.S. Senate is on track to advance a revised version of the GENIUS Act, a bill to regulate stablecoins🧠. Democrats reportedly were able to achieve some additional last minute protections.
💡 Why it matters
- The bill adds regulatory clarity for stablecoin issuers by distinguishing between federal and state oversight — a move that could foster innovation while still enforcing consumer protections.
- It now limits Big Tech participation by requiring a certification process for non-financial public companies (like Meta) to issue stablecoins, aiming to prevent monopolistic influence and protect user data.
- Issuers will also face strict bans on promoting yield or interest-bearing features.
🔥 Hot Take
The GENIUS Act is a big step forward for fiat-backed stablecoins — but it’s still unclear territory for decentralized ones like DAI or crvUSD. Lawmakers dodged direct confrontation for now, but the silence is telling: DeFi is still on the edge of regulatory legitimacy.
🧠 Wait, what’s a Stablecoin?
A stablecoin is a type of cryptocurrency designed to stay at a fixed value — typically $1 — and backed either by real-world dollars in a bank (like USDC) or by crypto collateral (like DAI). Think of it as digital cash you can send or use without needing a bank.
Foundational Read of the Week
Want to learn the basics? Here’s one read to scratch your curiosity itch.
WTF is The Blockchian. It’s the self-described “ultimate 3500-word guide in plain English to understand Blockchain.” Written in 2017, it’s a great primer.
That’s the second edition in the books.
Believe but validate.
—Validator Digital
—Validator Digital