Kraken parent Payward and its clients buy AAVE tokens in DeFi investment push

Loopscale suspends protocol operations due to a security attack; affected vaults have been fully replenished.

Crypto Morning Brief: US Storage Sector Decline Accelerates, SanDisk Drops Over 11%, Kraken Parent Payward and Clients Buy AAVE

The SEC has not yet expressed approval, and actively curated vaults and performance fees remain the most significant hurdles to regulatory approval.

Aave joins Kamino and Veda in submitting arguments to the SEC: DeFi lending and vaults should not be classified as securities

1. Ethereum Foundation Warns of Glamsterdam Compatibility Risks, Urges Developers to Audit Contracts   link   The Ethereum Foundation stated in a post on November 6 that security auditor ChainSecurity recently discovered that some projects may face smart contract compatibility and security risks following the Glamsterdam upgrade. This is because EIP-8037 and EIP-8038 will adjust the gas costs of certain operations and the gas charging mechanism for state storage, which may break the execution assumptions relied upon by existing contracts. Based on these findings, Ethereum core developers previously decided to postpone the Hoodi testnet hard fork and move forward only after the issues are resolved. The Foundation has released eight categories of potentially affected execution assumptions and inspection examples on GitHub, urging smart contract developers and auditors to audit projects, including on-chain contracts and off-chain services. The Ethereum team is conducting reviews together with multiple audit firms and will assess whether revisions to the relevant EIPs are necessary based on the scope of impact.   2. Solana Foundation Revises Validator Delegation: 12-Month Terms, 100 Validator Cap   link   The Solana Foundation announced rule changes to its Validator Delegation Program (SFDP), effective immediately, to boost support for new validators. Under the new rules, participation is limited to 12 months. Validators with non-SFDP staking exceeding 300,000 SOL must exit the program, and the cap for the number of validators receiving delegation support is set at 100. Each validator starts with a base delegation of approximately 5,000 SOL and receives a matching delegation equal to 50% of its external stake, with a maximum total SFDP delegation of 50,000 SOL per validator. Participants must operate validator nodes themselves and control their software and keys; white-label or third-party managed services are prohibited, though third-party server hosting is permitted. Existing participants that fail to comply with the new rules will exit in weekly batches. Validators that are exiting or have exited may apply for renewal.   3. Aave Labs Acquires Onchain Lender Avon’s Team and Tech, Plans Fixed-Rate Lending   link   Aave Labs, the core development firm behind Aave, has acquired the team and technology of on-chain lending project Avon to expand its fixed-rate lending business. The acquisition includes Avon’s fixed and floating-rate lending protocols, on-chain order book, domain name and related assets, with the specific transaction amount undisclosed. Three members of Avon will join Aave Labs, two of whom will join the engineering team and one the business development team. Stani Kulechov, CEO of Aave Labs, stated that fixed-rate products will help Aave expand its reach to institutions, fintech firms and retail users. Aave disclosed that its network deposits exceed 30 billion US dollars and active loans surpass 12 billion US dollars.   4. Zcash NU7 Upgrade Activated, Targeting 25-Second Block Times   link   Zcash activated the NU7 upgrade at block height 3,543,405, reducing the target block interval from 75 seconds to 25 seconds. As of 04:59 UTC, the actual average interval of blocks after the upgrade stood at approximately 39 seconds, with mining difficulty still adjusting. The upgrade also caps privacy transaction activity per block to ease wallet scanning loads. Forty percent of transaction fees go to miners, and sixty percent are directed to a reserve for future block rewards. NU7 additionally disables the Sprout privacy pool, rendering roughly 12,224 ZEC temporarily unusable, and a recovery plan has not yet been approved.   5. WLFI Plans Token Buyback, Possibly Funded by USD1 Reserve Fees   link   World Liberty Financial (WLFI), the crypto project backed by the Trump family, announced plans to launch a new WLFI token buyback program. Initial funding may include fee revenue generated from the USD1 stablecoin reserve and other sources. WLFI stated that the buyback is designed to encourage holders to actively participate in governance and further concentrate voting power among long-term holders. The project intends to make buybacks part of its long-term strategy, with subsequent buyback scale and pace adjusted based on ecosystem growth and governance participation. No specific buyback amount or execution timeline has been disclosed so far.   6. Base Completes Denim Upgrade, Retires Flashblocks for 200ms Blocks   link   Base mainnet has completed its fourth standalone upgrade, Denim, officially retiring Flashblocks in favor of producing a full canonical block every 200 milliseconds, equivalent to five blocks per second. This upgrade also introduces BaseTime, which provides millisecond-resolution Unix timestamps for smart contracts while retaining the original second-level precision of block timestamps, and delivers millisecond timestamps for blocks, transactions and logs via new RPC fields. In addition, Denim updates transfer and compliance controls for the B20 token standard, enabling reuse of compliance policies through the NOT operator, extending transfer executor restrictions to direct transfers, and prohibiting transfers to a token contract’s own address, token minting or seizure operations. Applications previously relying on Flashblocks need to migrate to the standard canonical block subscription mechanism.   7. Lido Launches Token Swaps on Ethereum, Arbitrum and Base   link   Lido announced the launch of a token swap feature on its interface powered by CoW Swap, allowing users to swap tokens on Ethereum, Arbitrum and Base networks via the built-in interface. In addition, the Lido Swap component automatically adds an extra price protection layer for larger swaps and leverages Chainlink price oracles to help users avoid abnormally unfavorable exchange rates.   8. ZetaChain to Halt Layer 1 Blocks on Dec 9; ZETA Migrates 1:1 to Solana   link   ZetaChain has launched an on-chain governance vote proposing to permanently halt block production on its Layer 1 network on December 9 and migrate the native ZETA token to Solana at a 1:1 ratio as an SPL token. The proposal also plans to roll out ZetaLabs, a privacy-focused AI application for financial markets, at the same time, where ZETA will be used for AI service payments, feature unlocking and product governance. In addition, the project plans to burn approximately 55 million ZETA originally allocated for validator rewards in batches throughout 2027. Voting will conclude on November 7.   9. Scroll to Pivot to Privacy-Focused AI Network; SCR Moves to Ethereum   link   Scroll, an Ethereum Layer 2 project, released a protocol upgrade proposal on its official governance forum on November 3. It plans to transform the existing permissionless general-purpose L2 network into a permissioned dedicated network focused on privacy AI applications and migrate the SCR token to Ethereum mainnet, with the token supply and overall tokenomics unchanged. Scroll stated that operating a general-purpose network cannot guarantee sustained demand while the underlying infrastructure still incurs maintenance costs, so it intends to build new network demand around AI products including Compass, CENO and USX. According to growthepie data, Scroll’s on-chain net profit stands at merely around $42.50, representing a roughly 92% drop over the past year.   10. Zilliqa Moves to Ethereum Layer 2, Launches Permissioned Market for Regulated Institutions   link   Zilliqa announced that it will transition from an independent Layer 1 to Zilliqa Institutional Layer (ZIL), an Ethereum Layer 2 targeted at regulated institutions. Zilliqa stated that usage on the original chain was insufficient to sustain standalone operations. The new network will rely on Ethereum for settlement security, feature built-in identity and compliance mechanisms, and host permissioned markets for verified institutional trading. Its token will remain ZIL. Zilliqa said token holders do not need to take any action for now, and relevant technical details will be released before the transition. Founded in 2017 by a research team from the National University of Singapore (NUS), Zilliqa is an early public chain project that deployed sharding technology. It raised approximately 22 million US dollars through a seed round and ICO between late 2017 and early 2018, with major investors including Polychain Capital, FBG Capital and NGC Ventures.     Follow us  Twitter:  https://twitter.com/WuBlockchain   Telegram:  https://t.me/wublockchainenglish

Weekly Project Updates: Aave Rolls Out Fixed-Rate Lending, WLFI Plans Token Buyback, Base Deploys Denim Upgrade, etc

Morning Minute is a daily newsletter written by Tyler Warner. The analysis and opinions expressed are his own and do not necessarily reflect those of Decrypt. And check out our daily news show 'FOMO HOUR' covering all of the top stories and market action. GM! Today’s top news: Crypto majors rebound

Morning Minute: Binance’s $6.4B Hack Overshadows Hyperliquid’s Biggest Day

The U.S. Treasury Department’s Financial Crimes Enforcement Network has issued an order effectively cutting MEXC Global off from the U.S. financial system. FinCEN alleges that the crypto exchange facilitated at least $16 billion in transactions connected to sanctions evasion, cybercrime and other illicit activity between May 2021 and May 2026, including flows linked to Iran, North Korea and Russia. The order prohibits U.S. financial institutions from transmitting funds to or from MEXC and is scheduled to take effect 30 days after publication in the Federal Register. Treasury said MEXC processed more than $1 billion in daily transactions and held approximately $5 billion in reserves as of September 2026, making the action a significant escalation in U.S. scrutiny of offshore cryptocurrency exchanges.

The U.S. Treasury Department’s Financial Crimes Enforcement Network has issued an order effectively cutting MEXC Global off from the U.S. financial system. FinCEN alleges that the crypto exchange faci

U.S. Treasury Cuts MEXC Off From Financial System Over $16B in Alleged Illicit Flows

Bitcoin erased Wednesday's post-election rebound Thursday as a technology stock selloff spread to cryptocurrencies, triggering hundreds of millions in forced liquidations.

Bitcoin fell to about $76,500, down nearly 5% and back near levels seen before Wednesday's jump above $80,000. Ethereum shed more than 5%, while other major tokens suffered comparable losses. Roughly 90% of the top 100 cryptocurrencies were in the red during the selloff, while roughly $428 million in crypto longs were liquidated in one hour.

Wall Street offered no shelter. The S&P 500 lost about 2.6% in late-morning trading, while the Nasdaq sank nearly 4%, approaching a correction, or a 10% drop from its peak.

The election is part of the answer, but anxiety over AI spending and interest rates is making the damage worse.

The election rally meets the AI selloff
Democrats' sweep of Congress initially rattled investors expecting tougher oversight of industries favored by President Donald Trump. Stocks rallied Wednesday as traders bet gridlock would limit major policy changes and falling oil prices would ease inflation. Bitwise Europe analyst André Dragosch also told Decrypt the Democratic sweep was "largely priced in."

Thursday brought a different interpretation. Investors weighed what Democratic control might mean for the data-center boom, particularly in states where voters oppose rising electricity costs and new facilities.

And the new political configuration is already moving things. Voters in at least 29 U.S. jurisdictions backed restrictions on data-center development, although not every measure is binding. UBS estimates potential pauses could threaten 30% of planned U.S. data-center capacity additions in 2028, per Reuters.

"We suspect there is going to be some scrutiny on this aggressive AI buildout," Swissquote senior analyst Ipek Ozkardeskaya told Reuters.

Chipmakers and AI infrastructure companies took the hit first. The Philadelphia Semiconductor Index dropped about 8%, while CoreWeave and Nebius fell by double digits. Tesla also tumbled roughly 9.5%, extending losses after Elon Musk spent heavily backing Republican candidates. Investors were also questioning the returns on massive AI investments.

The S&P 500 had the biggest bearish intraday movement in months, dropping almost 4% in minutes.


"The market's moving from the promise of AI to the price of AI," Ted Parkhill, chief executive of Incline Investment Management, told Reuters.

The political shift also threatens crypto's ambitions in Washington. Democratic control complicates efforts to revive the stalled Clarity Act, a proposed federal rulebook for digital assets. The new Congress will not take office until January. Politics alone cannot explain Bitcoin losing thousands of dollars in an hour.

Why Bitcoin's rebound fell apart
Wednesday's rally looked dramatic, but much of its buying pressure came from traders closing losing bets against Bitcoin. About $378 million in short positions were liquidated in one hour as Bitcoin pushed above $80,000, according to CoinGlass data.

Today’s reversal flipped the liquidation machinery in the opposite direction. Exchanges automatically close underfunded longs as prices fall, generating more selling and the enormous red candles visible on Bitcoin's hourly chart.



Crypto was already vulnerable before the election. The market had lost roughly $300 billion in value over the previous month, amid concerns about AI spending, rising borrowing costs and the fallout from last week's multibillion-dollar Binance hack.

Traders also expect another Federal Reserve rate increase in December as inflation persists. Friday's October jobs report could alter those bets; higher rates generally hurt demand for speculative investments.

Technically, Bitcoin's still-forming daily candle is threatening a bearish engulfing pattern, potentially swallowing Wednesday's green body and erasing the breakout in a single session.

The hourly chart shows selling through $79,000 to near $76,100. The next test is $75,000, while reclaiming $80,000 could ease the pressure—but Thursday's candle has not closed, so the pattern remains unconfirmed.

Bitcoin erased Wednesday's post-election rebound Thursday as a technology stock selloff spread to cryptocurrencies, triggering hundreds of millions in forced liquidations. Bitcoin fell to about $76,50

Bitcoin Erases Election Rally as $428M in Crypto Longs Are Liquidated

Samsung Wallet’s Stablecoin Account is now live for eligible U.S. Galaxy users across roughly 82 million compatible devices. The feature lets users buy, hold, send and receive USDC on Solana directly inside Samsung Wallet, with Coinbase powering USDC as the default dollar stablecoin and Bastion providing regulated custody infrastructure. Users can transfer USDC to compatible wallets and eligible bank accounts in more than 60 countries, moving stablecoins from a specialist crypto product toward a mainstream consumer payments and remittance tool. The service requires a supported Galaxy device running Android 13 or later, a Samsung Account, identity verification and biometric authentication; New York residents are excluded from the initial rollout.

Samsung Wallet’s Stablecoin Account is now live for eligible U.S. Galaxy users across roughly 82 million compatible devices. The feature lets users buy, hold, send and receive USDC on Solana directly 

Samsung Wallet Brings USDC on Solana to 82 Million U.S. Galaxy Devices

On 29th and 30th October 2026, Polymarket and Binance each dealt with a separate, publicly acknowledged security incident. In both cases, stolen funds in native POL arrived at addresses on Polygon PoS. At the request of the affected parties, the Polygon PoS block producers (anonymous-91 to anonymous-94) added those addresses to the Bor transaction block list.

5 attacker-controlled addresses hold about 70.49M POL: about 23.86M POL (4 addresses) from the Polymarket incident and about 46.63M POL (1 address) from the Binance incident. The funds cannot move, but nothing in the current setup lets them be returned either.

This proposal asks for a coordinated hard fork that, at a fixed block, sets the native POL balance of each listed attacker-controlled address to zero and credits the same amount to a recovery address that Polymarket or Binance has designated and verified. The change is limited to native POL balances in the addresses listed in this PIP. It is an extreme action that should not be reproduced commonly. Section 5 of the Specification and the Rationale state the conditions under which it is justified here.

On 29th and 30th October 2026, Polymarket and Binance each dealt with a separate, publicly acknowledged security incident. In both cases, stolen funds in native POL arrived at addresses on Polygon PoS

Polygon Proposes Hard Fork to Recover 70.49M POL From Hackers

CFTC Chairman Selig Releases Statement on Equity Perpetual Futures
November 03, 2026

WASHINGTON — CFTC Chairman Michael S. Selig today released a statement announcing that perpetual futures contracts on individual equity securities can begin trading for the first time on designated contract markets that are dually registered with the Securities and Exchange Commission as notice-registered national securities exchanges to trade security futures products. 

Key excerpts from Chairman Selig’s statement:

“Today, perpetual futures contracts on individual equity securities (the ‘Equity Perps’) can begin trading for the first time on CFTC-registered exchanges.
…

“This expansion marks a significant step towards allowing U.S. market participants, consistent with applicable law, to avail themselves of the advantages of perpetual futures that have led to their emergence as widely sought tools for risk-management and price-discovery. I believe that bringing these types of innovative products into our regulated markets ensures that American investors and traders can access these products within the protections of the CFTC’s proven regulatory framework, rather than being forced to turn to offshore, and often unregulated, venues.
…

“The Equity Perps build on the foundation of the [Commodity Futures Modernization Act of 2000] and the [CFTC-SEC Memorandum of Understanding]. For too long, regulatory uncertainty left innovative products, such as security futures and equity perpetual futures, stranded in what SEC Chairman Paul S. Atkins has aptly described as a regulatory ‘no man’s land’ due to a lack of harmonization between the agencies. The CFTC and SEC have turned the page on that era, and are committed to delivering regulatory clarity for innovative products and a clear path to market, rather than more casualties of jurisdictional disputes.”


CFTC Chairman Selig Releases Statement on Equity Perpetual Futures November 03, 2026 WASHINGTON — CFTC Chairman Michael S. Selig today released a statement announcing that perpetual futures contracts 

CFTC clears first U.S.-regulated perpetual futures on individual stocks

The SEC’s Division of Corporation Finance said Canton Coin is a “digital commodity” based on representations that its value is tied to the Canton Network’s programmatic operation and that the network has no central party. The staff will not recommend enforcement over programmatic minting without registration under the Securities Act or Exchange Act, while stressing that the response is fact-specific and is not a legal conclusion.

The SEC’s Division of Corporation Finance said Canton Coin is a “digital commodity” based on representations that its value is tied to the Canton Network’s programmatic operation and that the network 

SEC gives Canton Coin no-action relief as a digital commodity

The SEC’s Division of Corporation Finance added guidance clarifying that unaffiliated token holders participating in open governance are not automatically treated as a central party. The staff also distinguished permissioned from permissionless systems and explained how decentralized governance can coexist with legal entities such as DUNAs, although the FAQ has no legal force.

The SEC’s Division of Corporation Finance added guidance clarifying that unaffiliated token holders participating in open governance are not automatically treated as a central party. The staff also di

SEC clarifies how decentralized governance affects crypto securities analysis

Aave Labs and co-authors submitted a legal framework to the SEC’s Crypto Task Force and Division of Corporation Finance arguing that well-designed decentralized lending protocols and non-custodial vaults should not be treated as securities under the Howey and Reves tests. The proposal emphasizes user control, transparent governance and the absence of a centralized party financing an enterprise.

Aave Labs and co-authors submitted a legal framework to the SEC’s Crypto Task Force and Division of Corporation Finance arguing that well-designed decentralized lending protocols and non-custodial vau

Aave submits DeFi lending and vault framework to SEC crypto task force

NYSE added Broadridge, Computershare, Equiniti and Superstate to the transfer-agent network supporting its planned tokenized securities venue. The partners collectively serve nearly 5,000 listed companies, including about 99% of the S&P 500, while the proposed platform aims to offer 24/7 trading, instant settlement and stablecoin-based funding, subject to regulatory approval.

NYSE added Broadridge, Computershare, Equiniti and Superstate to the transfer-agent network supporting its planned tokenized securities venue. The partners collectively serve nearly 5,000 listed compa

Kraken parent Payward and its clients buy AAVE tokens in DeFi investment push

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Crypto Morning Brief: US Storage Sector Decline Accelerates, SanDisk Drops Over 11%, Kraken Parent Payward and Clients Buy AAVE

Aave joins Kamino and Veda in submitting arguments to the SEC: DeFi lending and vaults should not be classified as securities