The Community Bankers Council has asked the Senate for a crypto market structure bill that will ban exchanges and others offering interest on stablecoins. A group of US community bankers is pressuring Congress to change the GENIUS Act to close a supposed “loophole” that allows yield-generating stablecoins to undercut banks. The American Bankers Association’s Community Bankers Council said in a letter on Monday to the Senate that it must tighten the stablecoin regulating bill passed last year to stop stablecoin issuers from offering yield to tokenholders through third parties. “Some companies have exploited a perceived loophole allowing stablecoin issuers to indirectly fund payments to stablecoin holders through digital asset exchanges and other partners,” the group of more than 200 community bank leaders said. Read more
Bitchat developer Calle boldly said, “You can’t stop us” after Uganda threatened to block Bitchat ahead of elections next week. One of the developers of Jack Dorsey’s decentralized messaging app Bitchat has cast doubt on Uganda’s threat to shut down the app ahead of the country’s presidential election. On Monday, the Uganda Communications Commission executive director, Nyombi Thembo, said his team has the technical know-how to turn off Bitchat. Bitchat leverages Bluetooth mesh networks, enabling encrypted communication without the need for an internet connection. Read more
A protocol-level flaw allowed assets to be duplicated rather than minted, prompting a network halt and a governance-led recovery process. The Flow Foundation on Tuesday published a technical post-mortem detailing a protocol-level exploit that occurred on Dec. 27, when an attacker was able to counterfeit tokens on the network, resulting in about $3.9 million in confirmed losses before the exploit was contained. According to the report, the attacker exploited a flaw in Flow’s Cadence runtime that allowed certain assets to be duplicated rather than minted, bypassing supply controls without accessing or draining existing user balances. Validators coordinated a network halt within six hours of the first malicious transaction, while exchange partners froze most counterfeit assets before they could be sold. Flow said the temporary halt placed the network into a read-only mode to sever exit paths and prevent further duplication while the issue was investigated. Operations resumed two days later under an “isolated rec...
MSCI announced it will keep digital asset treasury companies in its global indexes, citing investor feedback and the need for further study on non-operating firms. Shares in Michael Saylor’s Strategy rose 5% after Morgan Stanley Capital International (MSCI) decided not to exclude digital asset treasury companies from its market index, for now. In a note published Tuesday, MSCI said digital asset treasury companies (DATCOs) would, however, be subject to broader consultations to distinguish between investment companies and other companies that hold digital assets as part of their core operations. The MSCI identifies DATCOs as companies in which digital assets make up 50% or more of their total assets. The continued inclusion ensures that DATs are still eligible for passive index funds, sustaining demand and liquidity while broadening institutional ownership of digital assets. Exclusion could have seen Strategy and other DATs lose billions of dollars in passive capital inflow. Related: Bitcoin advocate Machado i...
Canaan‘s pilot program will use the miner‘s liquid cooling systems to supplement the power needed to heat intake water for the greenhouses, helping grow tomatoes. Hardware manufacturer and Bitcoin miner Canaan has continued its initiative of reusing energy for commercial and consumer applications by making compute heat available for greenhouses in Canada. In a Tuesday notice, Canaan said it would participate in a 3 megawatt (MW) proof-of-concept with Bitforest Investment in the province of Manitoba to “recover heat from an Avalon computing system and use the heat as a supplemental source for greenhouse operations.” The pilot program, expected to run for an initial 24 months, will use Canaan’s liquid cooling systems to capture heat and preheat the intake water for the greenhouses, reducing the energy required. Read more