Important News from Last Night and This Morning (September 9th-10th)

Shenyu: iPhone 17 will be equipped with MIE hardware-level memory security

According to DiscusFish, co-founder of Cobo & F2pool, the iPhone 17 will feature MIE hardware-level "memory security" technology. EMTE real-time verification is enabled by default, preventing zero-day attack chains like out-of-bounds exploits and use-after-free (UAF) attacks, mitigating side-channel risks. Statistics show that memory security vulnerabilities account for 70% of all software vulnerabilities. This upgrade will help improve the security of wallet signatures and Passkeys.

Coinbase Lists Avantis (AVNT)

According to Coinbase Markets, Avantis (AVNT) is now available on Coinbase.com and the Coinbase App, labeled as an “experimental” asset. Users can buy, sell, exchange, send, receive, and store Avantis.

National Bureau of Statistics: Consumer prices in August 2025 fell by 0.4% year-on-year and remained unchanged month-on-month

In August 2025, the national consumer price index (CPI) fell by 0.4% year-on-year. This was reflected in a 0.3% decrease in urban areas and a 0.6% decrease in rural areas. Food prices fell by 4.3%, while non-food prices rose by 0.5%. Consumer goods prices fell by 1.0%, while service prices rose by 0.6%. On average from January to August, the CPI fell by 0.1% year-on-year. In August, the CPI remained unchanged month-on-month. Urban prices remained unchanged, while rural prices rose by 0.1%. Food prices rose by 0.5%, while non-food prices fell by 0.1%. Consumer goods prices rose by 0.1%, while service prices remained unchanged.

Gemini raises US IPO fundraising target to $433 million

According to Bloomberg, Gemini has raised its US IPO fundraising target to $433 million, raising the price range from $17-19 per share to $24-26 per share, with 16.7 million shares offered. At the top end of the range, Gemini's valuation reaches $3.1 billion. Nasdaq has subscribed to $50 million in private placement shares. Following the IPO, Gemini will list on Nasdaq under the ticker symbol GEMI. The company reported a net loss of $283 million in the first half of the year on revenue of $68.6 million.

LongLing Capital-linked wallets deposited over $14 million in crypto assets into Binance

According to Onchain Lens, the wallet address 0x5725de59fb21f997cdeb51776e1fd8dea05c28b3, associated with LongLing Capital, deposited 4.065 million WLD (US$7.42 million), 1,000 ETH (US$4.31 million), and 3 million USDT into Binance, totaling approximately US$14.13 million. Nansen data shows that the wallet realized a total profit of US$3.84 million.

Metaplanet will issue 385 million additional shares, raising approximately $1.4 billion to purchase Bitcoin

Metaplanet announced that it has finalized an international offering of 385 million additional shares at a price of 553 yen per share, raising approximately 212.9 billion yen (approximately US$1.444 billion). Of the proceeds, 183.7 billion yen will be used to purchase Bitcoin between September and October. The company currently holds approximately 20,000 Bitcoins, with a market value of approximately 322 billion yen. Another 20.4 billion yen will be invested in Bitcoin revenue-generating businesses (such as options trading) to boost full-year profitability. Upon completion of the offering, the company's total share capital will increase to 1.141 billion shares. Earlier today, it was reported that Nakamoto will invest US$30 million in Metaplanet as part of this international equity financing.

Nakamoto to invest $30 million in Metaplanet

Nakamoto announced a $30 million commitment to Metaplanet, marking Nakamoto's largest single investment to date and its first foray into the Asian market. The funds are part of Metaplanet's international equity financing, announced today, with closing expected on September 16th and the issuance and delivery of common stock on September 17th. Nakamoto stated that Metaplanet, with Bitcoin at its core, has become a leader in Bitcoin strategies for leading Japanese public companies and global enterprises, and that this investment will further strengthen the global institutional financial network centered on Bitcoin.

Grayscale has submitted registration statements for BCH, LTC, and HBAR to the US SEC

Grayscale has submitted S-3 registration statements for the Grayscale Bitcoin Cash Trust (BCH) and Grayscale Litecoin Trust (LTC) to the SEC, according to U.S. SEC filings. Grayscale has also filed an S-1 registration statement for the Grayscale Hedera Trust ETF, intending to offer securities publicly in the United States.

Eric Trump loses Alt5 Sigma board seat after Nasdaq consultation

According to Forbes, Alt5 Sigma originally planned to have Eric Trump join its board of directors, but after discussions with Nasdaq, he decided to only serve as a board observer, with no specific reason given. Alt5 Sigma previously announced it would raise $1.5 billion through direct and private placements to acquire $WLFI, a digital token issued by World Liberty Financial (WLF). SEC filings show that WLF, founded by Donald Trump and his three sons, holds approximately 38% of WLF's shares and 2.25 billion $WLFI tokens, with a shareholding in approximately 75% of the token sale proceeds.

Ethena Labs publishes proposal to bid for Hyperliquid’s USDH stablecoin issuance rights

Ethena Labs has published a proposal, requesting the community and validators to consider the USDH token identifier. It proposes a stablecoin centered on the Hyperliquid platform. This stablecoin will leverage the expertise and resources accumulated by Ethena and its partners, with a strong emphasis on security, community engagement, and regulatory compliance. Ethena has committed significant financial and human resources to establish USDH as a benchmark, leading stablecoin for Hyperliquid users and developers. Key terms of the proposal include: USDH will initially be 100% backed by USDtb; Ethena pledges to dedicate at least 95% of net revenue generated from the USDH reserve to the Hyperliquid community; and if the Hyperliquid community wishes to rebase trading pairs currently denominated in USDC on core exchanges to USDH, Ethena will cover all USDC-to-USDH transaction costs. The Ethena Labs research team will submit a proposal to the Ethena Risk Committee requesting that USDH be listed as a compliant backing asset for USDe.

Bubblemaps: A single entity is suspected of receiving $170 million worth of tokens from the MYX airdrop

Blockchain analytics platform Bubblemaps published a post on the X platform claiming a single entity claimed $170 million worth of tokens from the MYX airdrop. The platform tracked 100 newly funded addresses with identical on-chain activity, suggesting this is the largest airdrop Sybil attack ever. According to Bubblemaps, approximately 100 addresses received funds through OKX in the month leading up to the MYX airdrop. All transfers occurred around 6:50 AM on April 19th, and all received similar amounts of BNB. These addresses, all eligible for the airdrop, claimed a total of 9.8 million MYX (approximately 1% of the total token supply). Most of these addresses initiated their claims simultaneously: around 5:30 AM on May 7th. These addresses had no on-chain activity prior to claiming MYX, making this a highly unlikely random act.

Coinbase Adds Kamino (KMNO) to its Listing Roadmap

According to official news, Coinbase has included Kamino (KMNO) in its coin listing roadmap.

EasyJet parent company easyGroup launches Bitcoin app for US retail investors

According to CoinDesk, easyGroup, the parent company of easyJet and easyHotel, announced on Tuesday its entry into the cryptocurrency space with the launch of the mobile platform easyBitcoin.app in partnership with Uphold, simplifying the process of buying and holding Bitcoin for retail users. easyBitcoin lowers the investment barrier through a series of incentives, including a 1% welcome bonus for regular purchases, a 2% annual reward for long-term holders, and a 4.5% annualized yield on USD balances (paid in Bitcoin). The app is backed by $2.5 million in Federal Deposit Insurance Corporation (FDIC) insurance. easyGroup stated that a UK version of the app is planned to launch later this year.

US employment data is "watered down", increasing pressure on the Fed to cut interest rates

According to Jinshi, the US government's preliminary annual benchmark revision released on Tuesday indicates that US nonfarm payrolls for the 12 months ending in March are expected to be revised downward by 911,000, equivalent to an average monthly decline of nearly 76,000. Final data will be released early next year. Prior to this report, the government's non-seasonally adjusted employment data showed that employers added nearly 1.8 million jobs in the 12 months ending in March, an average monthly increase of 149,000. The revision from the US Bureau of Labor Statistics (BLS) suggests that the recent slowdown in the labor market follows a period of more modest job growth, potentially laying the groundwork for a series of interest rate cuts beginning next week. Federal Reserve Chairman Powell recently acknowledged increased risks to the job market, and two of his colleagues favored lower borrowing costs in July. Traders widely expect the Fed to announce a rate cut at its next meeting.

U.S. employment data revised sharply downward, with 911,000 fewer jobs added in the year to March

According to Jinshi, the US government said on Tuesday that the US economy likely added 911,000 fewer jobs than previously estimated in the 12 months ending in March, suggesting signs of stagnant job growth even before Trump implemented tough tariffs on imports. Economists had previously estimated that the Bureau of Labor Statistics (BLS), part of the US Department of Labor, could lower its employment figures for April 2024 to March 2025 by 400,000 to 1 million jobs. Previously, the employment figures for April 2023 to March 2024 had been revised down by 598,000 jobs. This benchmark revision follows news released last Friday that job growth almost stagnated in August and that June saw the first loss of jobs in four and a half years. In addition to being weighed down by trade policy uncertainty, the labor market is also under pressure from the White House's tightening immigration policies, which are weakening the labor supply. At the same time, businesses' shift to artificial intelligence tools and automation is also dampening demand for labor. Economists believe the downward revision to job growth will have little impact on monetary policy. The Federal Reserve is expected to resume cutting interest rates next Wednesday after pausing its easing cycle in January due to uncertainty about the impact of tariffs.

CBOE plans to launch continuous futures contracts for Bitcoin and Ethereum starting November 10

According to PR Newswire, the Chicago Board Options Exchange (CBOE), a subsidiary of CME Group, announced plans to launch Cboe continuous futures contracts on the CBOE Futures Exchange starting November 10, 2025, subject to regulatory review. Initially launching with continuous futures contracts for Bitcoin and Ethereum, this new product line will provide U.S. traders with a simpler and more efficient way to gain long exposure to digital assets, execute trading strategies, and manage risk within the U.S. regulatory, centrally cleared, and brokered framework. Unlike traditional futures contracts, which may require periodic rollovers, Cboe continuous futures contracts are designed to be single, long-dated contracts with maturities of up to 10 years, reducing the need for rollovers over time and simplifying position management. These contracts will be cash-settled and pegged to the real-time spot market price of Bitcoin and Ethereum, respectively, through daily cash adjustments. Funding rates will be calculated using a transparent and replicable methodology.

The initial value of the benchmark change in non-farm employment in the United States in 2025 is -911,000, and the expected value is -700,000.

According to Jinshi, the initial value of the benchmark change in non-farm employment in the United States in 2025 was -911,000, the expected value was -700,000, and the previous value was -598,000.

QMMM Holdings, a US-listed company, plans to establish a cryptocurrency vault with an initial scale of US$100 million.

According to Globenewswire, QMMM Holdings Ltd. (NASDAQ: QMMM) announced its strategic entry into the cryptocurrency sector. This expansion will combine artificial intelligence and blockchain technology to create cryptocurrency analysis tools and a self-developed crypto ecosystem. Furthermore, QMMM plans to establish a diversified cryptocurrency treasury, initially targeting Bitcoin, Ethereum, and Solana. The treasury is expected to initially hold $100 million.

Blockchain lender Figure plans to increase its IPO to $693 million

According to Bloomberg, blockchain lender Figure Technology Solutions Inc. has increased the potential size of its initial public offering (IPO) to as much as $693 million. According to a filing with the U.S. Securities and Exchange Commission on Tuesday, the company and some of its backers will offer 31.5 million shares (26.6 million from the company and 4.9 million from shareholders), up from the previously planned 26.3 million. The price range has been raised from $18 to $20 per share to $20 to $22 per share. At the upper end of the increased price range, the IPO would give Figure a market capitalization of approximately $4.7 billion based on the number of shares outstanding. The company was valued at $3.2 billion in a 2021 venture capital funding round. The filing shows that in the expanded offering, Duquesne Family Office LLC has expressed interest in purchasing up to $50 million worth of shares at the IPO price. Figure expects to set the IPO price on Wednesday, with shares set to begin trading on the Nasdaq Stock Market under the ticker symbol FIGR on Thursday. Figure previously reported plans to increase both the IPO size and pricing range.

A whale bought HYPE for $20.57 million yesterday and has now made a profit of $2.5 million.

According to on-chain analyst Ember, the whale qianbaidu.eth spent 20.57 million USDC yesterday to buy 431,000 HYPE at $47.7, pushing the price of HYPE to a record high. He has already made a profit of $2.5 million.

BNP Paribas and HSBC join privacy-focused blockchain Canton

According to CoinDesk, BNP Paribas and HSBC have joined the privacy-focused blockchain network Canton. Previously, Goldman Sachs, Hong Kong FMI Services, and Moody's Ratings joined the network in March. BNP Paribas stated that joining the network reflects its digital transformation strategy and its desire to collaborate on blockchain applications for client services. HSBC sees the move as a way to increase liquidity in the digital asset market and support transactions across multiple assets.

Truth Social updates its rewards system, allowing gems to be exchanged for CRO tokens and other benefits

According to Globenewswire, Trump Media & Technology Group announced that it has updated the Truth Social app, adding new features and enhancements to the Truth Social platform. These enhancements include: 1. Editing tweets; 2. Server-side drafts; 3. Scheduling; and 4. Truth Gems, available to all Patriot Plan subscribers. These Gems are planned to be part of an updated rewards system that will allow Truth Social and Truth+ users to redeem Gems earned through participation in various platform activities for Cronos (CRO) and other benefits using Crypto.com's digital wallet infrastructure.

U.S. Republican lawmakers seek scrutiny of Bitmain and Cango Inc.

According to Bloomberg, U.S. Republican Senator Zachary Nunn called for a federal investigation into Bitcoin mining hardware manufacturers Bitmain and Cango Inc., claiming their growing U.S. operations could pose a national security risk. Nunn noted that Bitmain and Cango "appear to be expanding their U.S. operations through complex ownership structures and financing arrangements, with potential transparency issues for regulators and the public." Representatives for both Bitmain and Cango responded by stating that they strictly abide by all U.S. laws and have no ties to any government or state-owned enterprise. Bitmain stated that it was aware of rumors about its planned acquisition of Cango but that "these rumors are completely untrue." It also denied exploring direct ownership of U.S. power plants and called the suggestion that its mining equipment could impact infrastructure "completely unfounded." Cango stated that it does not comment on "market rumors" or potential mergers and acquisitions. Nunn requested an investigation by the Committee on Foreign Investment in the United States (CFIUS), an interagency panel chaired by Bessent and responsible for reviewing national security risks posed by foreign companies entering the U.S. market. Nunn, who serves on a congressional subcommittee that examines U.S.-China competition in defense, technology, and the economy, urged CFIUS to investigate several specific allegations, including “potential ties” between Cango and foreign government actors, Bitmain’s “potential acquisition” of Cango, and Cango’s electricity usage in the United States.

Resolv: The second quarter airdrop will be available on September 19th, and 3% of the total token supply will be distributed in the third quarter.

DeFi protocol Resolv announced that the second season airdrop snapshot was taken at 07:59 UTC on September 9th. Points will be calculated retroactively, and no user action is required. Claims will open on September 19th and run until October 19th. Rewards will be distributed in stRESOLV, a transferable staking token that accrues value and grows across the ecosystem. Season 2 has concluded, and the next season will automatically begin with updated terms. Duration: September 9th to December 9th, 2025; distribution represents 3% of the total token supply.

Yunfeng Financial: Received approval from the Hong Kong Securities and Futures Commission to provide virtual asset trading services

According to Zhitong Finance, Yunfeng Financial (00376.HK) stated that it has obtained approval from the Hong Kong Securities and Futures Commission to upgrade its existing Category 1 (securities trading) regulated activity license to provide virtual asset trading services under the arrangement of opening a comprehensive account on the Securities and Futures Commission's licensed platform.

Ethereum treasury firm SharpLink has begun a $1.5 billion share repurchase program

SharpLink, a Nasdaq-listed Ethereum treasury company, has officially commenced a $1.5 billion share repurchase program, purchasing approximately 1 million shares of SBET. SharpLink stated that it believes its stock is significantly undervalued. Repurchasing shares when the net asset value (NAV) is below 1 will immediately increase earnings and compound long-term shareholder value.

New White House cryptocurrency advisor Patrick Witt calls market structure bill a top priority

According to CoinDesk, Patrick Witt, President Trump's newly appointed cryptocurrency czar, stated in an interview that he will take over from Bo Hines and urge lawmakers to finalize US cryptocurrency policy and implement new stablecoin laws. Two weeks after the US government released a related strategic report, Witt stated that "work continues unabated and we are fully committed to advancing all initiatives." He outlined three top priorities: Senate market structure legislation, swift implementation of the GENIUS stablecoin law, and the establishment of a federal cryptocurrency reserve. Regarding Senate legislation, Witt stated that the draft bill released by the Banking Committee last week showed significant improvements and received positive feedback. The bill is currently seeking comments from Democrats to secure 60 votes for passage. Although the August deadline has fallen short, the White House is maintaining pressure. His office is in regular communication with both drafting committees. The Banking Committee has released its draft, while the Agriculture Committee is slightly behind. Once both committees complete legislation, solicit comments, and vote, the bill will move to the Senate for final approval, requiring strong bipartisan support. Witt believes the Senate bill should be easily passed by the House.

Bloomberg Analyst: REX-Osprey Dogecoin ETF Set to List on Thursday

Bloomberg ETF analyst Eric Balchunas wrote on the X platform: "The era of memecoin ETFs is about to begin. The REX-Osprey Dogecoin ETF (symbol DOJE) is scheduled to be listed on Thursday. Although it complies with the Investment Company Act of 1940 like $SSK, there are still a large number of Section 33 holders waiting for approval from the U.S. Securities and Exchange Commission."

Acting Chairman of the U.S. CFTC: We are exploring the possibility of granting recognition to qualified overseas crypto trading platforms in accordance with cross-border regulatory requirements

According to crypto journalist Eleanor Terrett, Acting Chairwoman Caroline D. Pham of the U.S. Commodity Futures Trading Commission (CFTC) stated in a recent speech that the agency is exploring whether foreign cryptocurrency trading platforms that adhere to strict crypto-asset-specific rules (such as the EU's MiCA framework) can be recognized under U.S. cross-border regulatory requirements. Previously, the agency reiterated its long-standing regulatory framework for foreign trading platforms (FBOTs), allowing some non-U.S. cryptocurrency exchanges regulated by foreign regulators to directly serve U.S. traders by registering with the CFTC as FBOTs (rather than designated contract markets (DCMs)).

Japanese listed company Convano is raising $139.2 million through a bond issuance to increase its Bitcoin holdings

According to BitcoinTreasuries.NET, Japanese listed company Convano (stock code: 6574.T) is raising $139.2 million through the issuance of its fifth unsecured bond to increase its Bitcoin holdings.

Vietnam approves five-year pilot program for crypto asset trading market

According to Zhitong Finance, the Vietnamese government has officially approved a five-year pilot program for cryptoasset trading. This initiative aims to regulate and capitalize on the country's booming cryptoasset market, which currently lacks a clear legal framework. According to the resolution, only Vietnamese companies are allowed to provide cryptoasset trading platforms during the pilot period, and all issuance, trading, and payment activities must be denominated in Vietnamese dong. Cryptoasset issuers are also restricted to Vietnamese companies, and the underlying assets must be real estate (excluding securities and legal tender). Only foreign investors are permitted to issue cryptoasset shares. Regarding the entry requirements for exchange providers, the resolution specifies that their registered capital must be at least VND10 trillion (approximately US$379 million), of which at least 65% must be contributed by institutional investors—specifically, at least two reputable institutions such as commercial banks, securities firms, and fund managers, which must collectively hold at least 35% of the exchange provider's equity. Foreign ownership is capped at 49%, and institutional and individual investors are limited to a single exchange provider. Regarding account opening, Vietnamese citizens and foreign investors holding only cryptoassets are allowed to open trading accounts on licensed platforms.

Ethena has reached a cooperation with Binance to fully integrate USDe into its platform

Ethena Labs announced on the X platform that it has partnered with Binance to fully integrate USDe on its platform. This includes: 1. USDe as yield-generating collateral for futures and perpetual contracts; 2. Direct integration with Binance Earn; and 3. USDe spot trading pairs. Additional features will be rolled out in the coming weeks. Ethena Labs added that USDe will be the first externally developed USD asset offered as collateral on the Binance platform, offering native rewards.

Binance Alpha to List PINGPONG (PINGPONG)

According to an official announcement, Binance Alpha will list PINGPONG (PINGPONG) on September 11th. Eligible users can claim the airdrop using Binance Alpha Points on the Alpha event page after trading opens. Detailed details will be announced separately.

Upbit to List Worldcoin (WLD) in KRW, BTC, and USDT Markets

South Korean cryptocurrency exchange Upbit will list Worldcoin (WLD) in the KRW, BTC, and USDT markets, according to an official announcement.

Arthur Hayes: Listing on Binance will help Ethena turn on the fee switch, which is expected to unlock $500 million in buybacks

According to Coindesk, ENA, the governance token of the decentralized finance protocol Ethena, surged on Tuesday, reaching its strongest price since late January, as the protocol took a major step toward activating its fee switch mechanism, which will share protocol revenue with token holders. Listing the token on leading exchange Binance is a key requirement for Ethena to activate the fee switch mechanism, which shares protocol profits with ENA token holders. Token Terminal data shows that the protocol generated $54 million in revenue last month, bringing its total revenue to over $480 million since its launch in late 2023. Arthur Hayes, co-founder of BitMEX and a prominent Ethena investor, stated, "With the listing of USDe on Binance, the ENA fee switch will be activated. This will unlock $500 million in buyback funds." Coingecko data shows that the ENA token is currently trading at $0.8281, up 7% in the past 24 hours and 18.5% in the past seven days.

U.S. Senate Democrats release market structure framework, priorities include preventing Trump from profiting from cryptocurrency investments

According to Crypto In America, a group of 12 Senate Democrats released a detailed framework for market structure legislation on Tuesday morning, a strong signal that the minority party is ready to work bipartisan with Republicans on comprehensive cryptocurrency market reform. They argue that the global cryptocurrency market, with a value of nearly $4 trillion and millions of Americans participating, cannot remain in a regulatory limbo. Preventing Trump from profiting from cryptocurrency investments is a primary concern. The framework includes a section specifically prohibiting officials and their families from profiting from digital assets while in office and is described as a roadmap for achieving a bipartisan outcome. Democrats have seven major priorities, including clarifying the CFTC's regulatory authority, clarifying regulatory authority, requiring issuers to disclose information, ensuring platform compliance, preventing illegal financial activities, prohibiting officials and their families from profiting, and ensuring fair and effective regulation. The framework, proposed after the Republican draft, aims to create legislation acceptable to both sides, but controversial provisions (such as ethics clauses and strict regulation of decentralized finance) and the timing of the bill may make its passage more difficult.

Kyrgyzstan's Finance Minister to Submit Bill to Establish Strategic Bitcoin Reserve

Kyrgyzstan’s finance minister will submit a bill to establish a strategic Bitcoin reserve, and he wants the government to mine Bitcoin, according to The Bitcoin Historian.

A whale lost more than $40 million in less than a month, becoming the biggest loser on Hyperliquid.

According to Lookonchain, the whale 0xa523 lost over $40 million in less than a month, surpassing AguilaTrades, qwatio, and James Wynn to become the biggest loser on the Hyperliquid platform. He previously sold 886,287 HYPE tokens at a loss of $39.66 million, which would have resulted in nearly $9 million in unrealized gains if held to date. He subsequently lost over $35 million on his ETH long position, and then another $614,000 after switching to an ETH short position. His current BTC long position is down another $2.33 million.

Nasdaq to invest $50 million in crypto exchange Gemini, sources say

According to Reuters, Gemini, the crypto exchange founded by brothers Cameron and Tyler Winklevoss, is moving forward with its New York IPO plans this week and has successfully attracted Nasdaq as a strategic investor, citing people familiar with the matter. Gemini's initial public offering (IPO) is reportedly expected to raise up to $317 million, and Nasdaq has arranged for the purchase of $50 million worth of shares in a private placement at the time of the IPO. People familiar with the matter said the investment is part of a partnership that will enable Nasdaq clients to access Gemini's custody and pledge services. Gemini's institutional clients can also use Nasdaq's Calypso platform to manage and track trading collateral. Gemini is expected to list on Nasdaq on Friday under the ticker symbol "GEMI." People familiar with the matter cautioned that the company's plans are subject to market conditions and are subject to change.

A whale deposited 9.325 million WLD on Binance, generating profits exceeding $8 million in two weeks.

According to Lookonchain monitoring, the smart whale 0xC0D9 deposited 9.325 million WLD (worth US$16.88 million) into Binance, achieving a profit of over US$8 million in just two weeks, with a yield of 91%.

US SEC Commissioner Peirce warns: L2 chains with centralized sorters may face exchange registration requirements

According to Cryptoslate, U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce warned that Layer 2 blockchains running centralized matching engines may face exchange registration requirements, while advocating for the protection of truly decentralized protocols. In an interview on "The Gwart Show," she distinguished between immutable code on decentralized networks and centralized entities leveraging blockchain transactions. The head of the SEC's cryptocurrency task force believes that truly decentralized protocols cannot be owned and can be used by anyone. Layer 2 solutions, while addressing the MEV problem through centralized transaction ordering, introduce regulatory complexity, and their matching engines deviate from the censorship-resistant nature of blockchains. Peirce stated that matching engines controlled by a single entity are more like exchanges, and operators must consider relevant requirements if trading securities, but the SEC hopes to avoid forcing decentralized protocols to register. She emphasized the importance of protecting smart contracts on fully decentralized Layer 1 networks. Peirce favors letting the community resolve the MEV issue first, prioritizing regulatory intervention. As traditional securities migrate to blockchains, she hopes to protect developers and ensure compliance by centralized intermediaries. She advocates for a distinction between autonomous code and regulated entities, granting decentralized protocols a safe harbor while centralized Layer 2 chains are subject to traditional regulations.

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