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ETH $2,421.34 +2.84%
BNB $642.75 +1.07%
XRP $1.48 +1.51%
SOL $88.82 -0.34%
TRX $0.3277 +0.20%
DOGE $0.0992 -0.34%
ADA $0.2584 -0.57%
BCH $453.15 -0.69%
LINK $9.61 +0.40%
HYPE $44.50 +1.23%
AAVE $115.19 -0.27%
SUI $0.9993 -0.55%
XLM $0.1742 +3.07%
ZEC $328.57 -3.12%

front-end

The U.S. SEC releases a statement providing key guidance: some cryptocurrency trading front-ends do not need to register as brokers

The U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets issued a staff statement providing guidance on whether certain user interfaces used to generate trading instructions for crypto asset securities (Covered User Interface) need to be registered as broker-dealers.The statement noted that under specific conditions, providers of such interfaces may not need to register as broker-dealers under Section 15 of the Securities Exchange Act. These conditions include: not actively soliciting specific trades, not providing investment advice, not controlling or executing trades, generating trading instructions solely based on objective parameters, and fully disclosing the fee structure, potential conflicts of interest, and associated risks to users.The SEC emphasized that such interfaces typically exist in the form of websites, browser plugins, or wallet applications, used to convert trading parameters set by users into on-chain executable instructions, while also providing market data such as prices, paths, and fees.Additionally, the statement clarified that such exemptions do not apply to activities involving trade matching, fund custody, order routing, or providing investment advice. The relevant guidance is a temporary opinion and will automatically expire in 2026 if no further action is taken. The SEC stated that this move aims to provide a clearer regulatory framework for activities related to crypto asset securities and continues to seek market feedback.

Galaxy Research Director: The two parties in the U.S. are negotiating the crypto market structure bill, with the Democrats raising demands for front-end compliance regarding DeFi

Galaxy Research Director Alex Thorn shared the latest developments on the crypto market structure bill on the X platform: "A bipartisan meeting was held today to discuss the core demands put forth by both Democrats and Republicans to advance the bill. We reviewed a key document that emerged from this meeting.The main demands from the Democrats regarding DeFi include: front-end compliance with sanctions requirements; granting the Treasury greater 'special measures' authority; and establishing regulatory rules for 'non-decentralized' DeFi.Other demands from the Democrats include: adjusting the classification of crypto assets; introducing new investor protection provisions for crypto ATMs and FTC consumer protection; adding anti-evasion provisions (to prevent evasion of securities laws or other regulatory requirements through loopholes); setting a fundraising cap of up to $200 million for issuers, and requiring protocol parties to proactively report to the SEC, explaining that they do not constitute securities."Matters still pending further discussion include the regulation and handling of stablecoin yields; ethical standards and conflicts of interest, among others. Republicans are pushing for the Senate Banking Committee to review the bill next Thursday (January 15). It remains unclear whether the two parties can reach a consensus to make it a bipartisan bill, as many issues are still unresolved.

Galaxy Research Director: The two parties in the U.S. are negotiating the crypto market structure bill, with the Democrats making demands for front-end compliance regarding DeFi

Galaxy Research Director Alex Thorn shared the latest developments on the crypto market structure bill on the X platform: "A bipartisan meeting was held today to discuss the core demands put forward by both Democrats and Republicans to advance the bill. We reviewed a key document that emerged from this meeting.The main demands from the Democrats regarding DeFi include: front-end compliance with sanctions requirements; granting the Treasury greater 'special measures' authority; and establishing regulatory rules for 'non-decentralized' DeFi. Other Democratic demands include: adjusting the classification of crypto assets; introducing new investor protection provisions for crypto ATMs and FTC consumer protection; adding anti-avoidance clauses (to prevent evasion of securities laws or other regulatory requirements through loopholes); setting a cap of $200 million for fundraising by issuers, and requiring protocol parties to proactively report to the SEC, clarifying that they do not constitute securities.Outstanding issues for further discussion include the regulation and handling of stablecoin yields; ethical standards and conflicts of interest, among others. Republicans are pushing for the Senate Banking Committee to review the bill next Thursday (January 15). It remains unclear whether the two parties can reach a consensus to make it a bipartisan bill, as many issues are still unresolved."

Review of Balancer's historical security incidents, resulting in a loss of 21 million dollars due to flash loans, front-end hijacking, and cross-protocol vulnerabilities

The DeFi protocol Balancer is currently under attack, with losses exceeding $116.6 million across multiple chains, and the attack on Balancer is still ongoing.According to the on-chain AI analysis tool CoinBob, the historical security incidents of Balancer are as follows:June 2020 Flash Loan Attack: Attackers exploited a compatibility issue between the deflationary token (STA/STONK) and Balancer's smart contracts, repeatedly calling swapExactAmountIn to drain the liquidity pool, ultimately profiting $523,600.August 2023 V2 Pool Vulnerability: The Balancer V2 pool suffered multiple flash loan attacks due to a code vulnerability, with total losses reaching $2.1 million. The team urgently paused the affected pools and advised users to withdraw their funds, but some funds that were not withdrawn in time were still exploited.September 2023 Frontend Hijacking Attack: Hackers gained control of Balancer's frontend through BGP/DNS hijacking, tricking users into authorizing malicious contracts, resulting in a loss of $238,000. On-chain detective ZachXBT traced the funds to address 0x645710Af050E26bB96e295bdfB75B4a878088d7E.2023 Euler Incident Impact: Due to a vulnerability in Euler Finance, Balancer's bbeUSD pool suffered a loss of $11.9 million, accounting for 65% of the pool's TVL. The team took protective measures to limit liquidity withdrawals.2024 Velocore Attack Association: The Velocore vulnerability exploited Balancer-style CPMM pools, resulting in a loss of $6.8 million. Balancer's technical architecture was indirectly implicated due to cross-protocol integration.
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