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S&P brings ratings-style scrutiny to $10 billion crypto vault market as $6 million Base incident exposes risks

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S&P brings ratings-style scrutiny to $10 billion crypto vault market as $6 million Base incident exposes risks
S&P Global is bringing ratings-style risk assessments to crypto lending vaults as the fast-growing market confronts fresh security failures. The ratings firm launched its Vault Risk Assessment framework on Oct. 4, creating a standardized approach for comparing the likelihood that investors suffer impairment in lending vaults. Deposits in the products reached about $10 billion in … Read more

Why Abstract is killing its Ethereum L2 instead of launching a token to save it

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Why Abstract is killing its Ethereum L2 instead of launching a token to save it
Abstract will shut down on Dec. 15 despite onboarding more than 400,000 users, hosting 144 apps, and landing brands including Disney and Red Bull Racing. The consumer-focused Ethereum layer-2 (L2) cited stagnant growth, thin liquidity, restricted DeFi activity, and limited institutional crossover. Igloo CEO Luca Netz said the company had lost “tens of millions of … Read more

SEC drops to 2 members, and 1 hidden rule shifts crypto power

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SEC drops to 2 members, and 1 hidden rule shifts crypto power
Hester Peirce’s Oct. 2 resignation has left Paul Atkins and Mark Uyeda as the SEC’s two listed commissioners. A new rule permits one eligible member to constitute a quorum when every other sitting member is disqualified from a particular matter. Under the current roster, that combination puts future Commission decisions on crypto policy in fewer … Read more

FinCEN drops crypto mixing proposal as backlash kills rule

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FinCEN drops crypto mixing proposal as backlash kills rule
US Treasury’s Financial Crimes Enforcement Network (FinCEN) announced on Oct. 5 that it is withdrawing a reporting proposal for crypto mixing, the use of techniques that obscure a transaction’s source, destination, or amount. The plan reached beyond dedicated mixing services and would have required financial institutions to report information about covered transactions and their customers. … Read more

DOJ presses Tornado Cash prosecution as Treasury drops mixer reporting plan

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DOJ presses Tornado Cash prosecution as Treasury drops mixer reporting plan
Federal prosecutors are using a new Bitcoin Fog appeal to defend trying two counts against Roman Storm in New York. Their Oct. 5 letter asks Judge Katherine Polk Failla to reject his venue challenge on the money-laundering and money-transmission conspiracy counts. Storm co-founded Tornado Cash, a cryptocurrency mixer that obscures transaction trails. The filing arrived … Read more

Ethereum’s proposed 3x ETF could reach CME’s futures threshold with just $362 million

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Ethereum’s proposed 3x ETF could reach CME’s futures threshold with just $362 million
At ETHU’s Oct. 6 disclosed futures valuation, a 3x Ethereum ETF with $362.1 million in assets would target about $1.09 billion of exposure. If held entirely in standard CME Ether futures, that would equal 8,000 contracts, CME’s single-month and all-month accountability level. The SEC approved Cboe BZX’s rule change to list Volatility Shares’ proposed ETHK … Read more

Aave and Pendle may have found a way to keep yield capital from ever leaving DeFi

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Aave and Pendle may have found a way to keep yield capital from ever leaving DeFi
Aave is approaching a $67 million collateral rollover as one of its fastest-growing fixed-yield trades reaches maturity. About 67.4 million PT-AUSD-8OCT2026 tokens were supplied as collateral on Aave V3’s Monad market as of Oct. 2, according to risk adviser LlamaRisk. The Pendle principal tokens mature Oct. 8, when each becomes redeemable for one AUSD and … Read more

Cardano just added the kind of token controls Wall Street wants and DeFi may hate

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Cardano just added the kind of token controls Wall Street wants and DeFi may hate
Cardano’s proposed programmable-token standard could let a freeze on one asset temporarily block unrelated tokens held in the same transaction output. CIP-113, merged into Cardano’s main improvement-proposal repository on Sept. 29, is designed to add issuer-controlled transfer rules to native assets without abandoning the network’s extended unspent transaction output, or eUTXO, model. The Cardano Foundation … Read more

NYSE owner and OKX plan 24/7 tokenized stock trading using Uniswap

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NYSE owner and OKX plan 24/7 tokenized stock trading using Uniswap
Intercontinental Exchange and OKX are preparing an always-open market where tokenized US stocks could keep repricing after Wall Street closes. On Oct. 4, OKXICE, the companies’ 50-50 joint venture, notified the Securities and Exchange Commission (SEC) that it intends to launch a Tokenized Securities Venue under the regulator’s new Innovation Exemption. The proposed platform would … Read more

Bitcoin futures drop $1.4B, but spot buyers step in to help

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Bitcoin futures drop $1.4B, but spot buyers step in to help
Bitcoin’s aggregate futures exposure fell as recently active capital gained share through Oct. 4. Younger coin cohorts tend to spend more readily during volatility, so sustained buying remains the test of how readily the market can absorb active supply. Glassnode’s Oct. 5 Market Pulse reported futures open interest declining from $38 billion to $36.6 billion. … Read more