The Daily: Senate passes stablecoin bill, K33 eyes long SOL/short LTC ETF trade, and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Wednesday! Crypto remains under pressure as a hawkish Fed outlook and Middle East tensions weigh on sentiment, but analysts say a rebound is still in play for the second half of the year — if rate cuts arrive and geopolitical risks ease.

In today’s newsletter, the U.S. Senate passes a stablecoin bill, and new spot altcoin ETFs could unlock compelling trades, according to K33. Plus, Iranian crypto exchange Nobitex is seemingly exploited by a pro-Israel hacker group, and more.

Meanwhile, Feds file to seize $225 million worth of cryptocurrency in a historic U.S. Secret Service bust.

Let’s get started.

Senate passes stablecoin bill

The U.S. Senate passed the bipartisan GENIUS Act by 68 votes to 30 late Tuesday, marking the first major crypto legislation to clear the chamber and advancing federal rules for U.S. dollar-pegged stablecoins.

• The bill, backed by the Trump administration, aims to solidify U.S. dollar dominance, requiring stablecoins to be fully backed by dollars or similarly liquid assets, mandating annual audits for issuers with market caps of more than $50 billion, and establishing guidelines for foreign issuance.
• Stablecoin holders would also get “super-priority” in bankruptcy, giving them first rights to recover funds if an issuer collapses.
• The legislation blocks non-financial tech giants such as Meta and Amazon from issuing stablecoins unless they meet strict risk and privacy standards.
• It also prohibits stablecoins from paying interest to their holders, thereby outlawing any yield-generating features to ensure they function purely as payment tools rather than investment vehicles.
• The bill now heads to the House, which must decide whether to pursue its own STABLE Act bill or adopt the Senate’s GENIUS Act.
• Throughout the process, Democrats voiced concerns over foreign issuers and President Trump’s crypto ties, especially following the launch of his affiliated stablecoin venture, World Liberty Financial.

New spot altcoin ETFs could unlock compelling long SOL, short LTC trade

K33 Head of Research Vetle Lunde said new spot altcoin ETF approvals could unlock powerful long/short opportunities, especially between Solana and Litecoin, based on the “Grayscale effect.”

• Grayscale’s Solana trust, launched in 2023, has never traded at a discount and holds just 0.1% of the SOL supply — minimizing the risk of market flooding or redemption-driven selling, Lunde said.
• In contrast, its Litecoin trust has frequently traded at discounts, holds a 2.65% share of LTC supply, and saw renewed discount pressure after recent in-kind creations.
• This suggests a cleaner setup for potential Solana ETFs, while similar Litecoin products risk heavy post-launch outflows, mirroring those seen by GBTC and ETHE after the former Bitcoin and Ethereum trusts were converted into ETFs, Lunde argued.
• Therefore, a long SOL, short LTC trade following SEC approval looks appealing, he said, especially if they debut simultaneously.

Iranian crypto exchange Nobitex seemingly exploited by pro-Israel hacker group

Onchain sleuth ZachXBT uncovered over $80 million in suspicious outflows from Iranian crypto exchange Nobitex across Tron and EVM-compatible chains following unauthorized access to its hot wallets.

• Nobitex confirmed the breach and pledged to fully reimburse users using its insurance fund and internal resources.
• The attacker used a provocative Tron vanity address referencing the Islamic Revolutionary Guard Corps, fueling speculation of geopolitical motives tied to the ongoing conflict between Israel and Iran.
• Pro-Israel hacker group Gonjeshke Darande later claimed responsibility, accusing Nobitex of enabling terrorism financing and sanctions evasion.

Polygon co-founder spins off to launch independent zero-knowledge project ZisK

Polygon co-founder Jordi Baylina has spun off its former zkEVM team into a new Swiss-based startup called ZisK, transferring all code and IP to the independent venture.

• ZisK will focus on building low-latency, open-source zkVM-proving technology after being incubated within Polygon Labs for over a year.
• The move comes as new Polygon Foundation CEO Sandeep Nailwal shifts focus to Polygon PoS and AggLayer, having recently announced plans to deprecate its underused zkEVM.
• Critics claim Polygon quietly abandoned the zkEVM (Hermez) chain it had earlier acquired for $250 million, with the network incurring over $1 million in annual losses before the spin-out.

Crypto in divorce: lawyer outlines common red flags spouse may be hiding assets

Modern prenups and postnups are increasingly adding clauses that classify crypto assets as separate or marital property, set valuation methods, and spell out how they should be divided in a divorce, according to Christopher R. Castellano, a principal at Joseph, Greenwald & Laake.

• However, divorce lawyers are seeing a rise in crypto-related disputes, with red flags including sudden tech interest and unexplained cash withdrawals, pointing to possible hidden assets, Castellano said.
• While courts have tools to compel the disclosure of cryptocurrencies in divorce cases, their identification and valuation remain the biggest challenge, often requiring onchain forensic experts to trace assets across pseudonymous wallets and non-KYC platforms, he added.

In the next 24 hours

• The Bank of England’s latest interest rate decision is due at 7 a.m. ET on Thursday. U.S. markets are closed for Juneteenth.
• ECB President Christine Lagarde is scheduled to speak at 6:30 a.m.
• BTC Prague kicks off in the Czech Republic.
• 1inch is set for a token unlock.

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