Here’s a quick rundown of today’s top crypto stories:
Ethereum’s Pectra Upgrade Activated
The Ethereum network has officially activated its Pectra upgrade. This upgrade brings several key improvements, including:
- Smart Accounts: Allowing externally owned accounts to function more like smart contracts.
- Higher Staking Limits: Increasing the validator staking limit from 32 ETH to 2,048 ETH.
- Improved Scalability: Enhancing layer-2 scalability to potentially reduce transaction fees.
The Pectra upgrade went live on May 7, 2025, at epoch 364032. Key Ethereum Improvement Proposals (EIPs) included are EIP-7702, EIP-7251, and EIP-7691.
Sergej Kunz, co-founder of 1inch, highlights that Pectra introduces ‘smart account’ functionality at deeper protocol levels and improves Ethereum’s scalability through layer-2 solutions.
Democrats Target Trump’s Crypto Activities
US Democrat lawmakers are intensifying their scrutiny of President Donald Trump’s involvement in crypto ventures. They’ve launched a multi-pronged approach, including:
- The MEME Act: Aims to prevent federal officials from profiting from memecoins.
- House Legislation: Companion legislation introduced in the House of Representatives.
- Subcommittee Inquiry: An inquiry into the Official Trump (TRUMP) token and other associated ventures.
The Modern Emoluments and Malfeasance Enforcement Act (MEME Act) seeks to prohibit presidents, vice presidents, members of Congress, and senior executive branch officials from promoting or sponsoring digital assets. Senator Richard Blumenthal’s subcommittee is also investigating Trump’s crypto-related businesses.
New Hampshire Approves Crypto Investments
New Hampshire has become the first US state to allow its government to invest in cryptocurrencies. Governor Kelly Ayotte signed a bill permitting the state treasury to invest in cryptocurrencies with a market capitalization exceeding $500 billion.
This move positions New Hampshire as a leader in the future of commerce and digital assets. The new law allows the state to invest in both cryptocurrency and precious metals.
Other states like Arizona and Florida considered similar bills, but they faced vetoes or were withdrawn from consideration.
Deeper Dive into Ethereum’s Pectra Upgrade
The Pectra upgrade is a significant step forward for the Ethereum network, building upon previous upgrades like the Merge and Shanghai. It focuses on enhancing user experience, improving scalability, and paving the way for future innovations. Let’s examine the key EIPs in more detail:
- EIP-7702: This EIP allows externally owned accounts (EOAs) to act as smart contracts. This means users can leverage the more complex functionality of smart contracts without necessarily having to deploy a full contract themselves. It also lets EOAs cover gas expenses (transaction fees) and payments in tokens other than ETH.
- EIP-7251: Increasing the validator staking limit to 2,048 ETH simplifies operations for large stakers, reducing the administrative overhead and potentially leading to greater network efficiency. This makes it more attractive for institutions and large individual investors to participate in securing the Ethereum network.
- EIP-7691: Increasing the number of data blobs per block boosts layer-2 scalability. Layer-2 solutions, such as rollups, bundle multiple transactions into a single transaction on the Ethereum mainnet, thereby reducing congestion and lowering transaction fees. This EIP increases the amount of data that can be processed by these layer-2 solutions.
The activation of Pectra follows a period of rigorous testing on various Ethereum testnets to ensure its stability and security. The Ethereum Foundation and the broader Ethereum developer community played a critical role in designing, developing, and deploying the upgrade.
Trump’s Crypto Controversy: A Closer Look
The Democrats’ scrutiny of Donald Trump’s crypto ventures raises important questions about the intersection of politics, finance, and emerging technologies. Trump’s involvement in memecoins and crypto platforms has drawn criticism due to potential conflicts of interest and concerns about the exploitation of his public profile for personal gain.
The MEME Act specifically targets this type of activity, aiming to prevent federal officials from using their positions to profit from digital assets. The bill’s description highlights the potential for abuse and the need to maintain public trust in government.
Senator Blumenthal’s subcommittee inquiry is expected to delve into the operations of the Official Trump (TRUMP) token and the World Liberty Financial (WLFI) platform, examining their business models, regulatory compliance, and potential links to Trump’s political activities. The outcome of this inquiry could have significant implications for Trump’s future involvement in the crypto space.
New Hampshire’s Bold Bitcoin Move: Implications and Risks
New Hampshire’s decision to invest state funds in cryptocurrencies, particularly Bitcoin, represents a bold and potentially groundbreaking move. It signals a growing acceptance of digital assets as legitimate investment vehicles and a willingness to explore their potential benefits.
The bill’s requirement that investments be limited to cryptocurrencies with a market capitalization of over $500 billion aims to mitigate some of the risks associated with smaller, more volatile altcoins. However, Bitcoin itself is subject to significant price fluctuations, and the state’s investment could experience substantial gains or losses depending on market conditions.
Furthermore, the regulatory landscape surrounding cryptocurrencies remains uncertain, and future legal or policy changes could impact the value and usability of Bitcoin. New Hampshire’s decision to invest in Bitcoin also raises questions about the security and custody of these digital assets, as well as the potential for cyberattacks and theft.
Despite these risks, New Hampshire’s move could pave the way for other states and even the federal government to consider incorporating cryptocurrencies into their investment strategies. It could also attract new businesses and investors to the state, fostering economic growth and innovation.
