News linked to both this project and an event.
Odaily reports: Crypto wallet backup company Vault12 submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) on Tuesday, stating that the SEC's proposed token safe harbor framework fails to adequately address centralized exchanges' listing concerns, and trading platforms still worry they may face retroactive challenges from the SEC regarding the legal status of tokens in the future.Vault12 raised $17.45 million from 38 investors in 2018 through a future token agreement. Its issued Vault Guardian Token (VGT) has not yet been listed on any centralized exchange. The project has fulfilled or formally abandoned all commitments in its white paper, but exchanges it previously approached still require confirmation that the SEC will not determine in the future that VGT remains subject to the original investment contract.The SEC's "Regulation Crypto Assets" proposal introduced in August this year aims to provide exemptions for token fundraising and allow eligible projects to terminate the association between tokens and original investment contracts through a safe harbor mechanism. Vault12 recommends adding a 60-day objection period; if the SEC does not raise objections within the deadline, qualifying filings should have final effect on the agency, except in cases of fraud or material misrepresentation. (CoinDesk)
According to a comment letter submitted by the Hyperliquid Policy Center (HPC) to the U.S. Securities and Exchange Commission (SEC) on October 19, the HPC generally supports the SEC's proposed Crypto Asset Regulation (File No. S7-2026-27) and urges its prompt adoption. The proposal includes a $5 million startup exemption (four-year term), a $75 million fundraising exemption (per 12 months), a safe harbor for investment contracts, and state-level advance applicability provisions for "qualified purchasers." The HPC also puts forward five recommendations: 1. Airdrops: Incorporate airdrop analysis into the final rule text and use "clear and specific consideration" as the criterion for determining a "monetary investment"; 2. Secondary Markets: Clarify the status of secondary market trading and intermediaries, enabling assets issued under exemptions to trade immediately outside the registration framework, and recommend exempting relevant trades and platform determinations under Section 36 of the Exchange Act; 3. Safe Harbor: Its use should not be construed as an admission that an investment contract or issuer status exists, and protections should extend through the period during which key management tasks are being performed; 4. Buybacks: Incorporate the SEC Division of Corporate Financing's recent buyback guidance into the rules, standardize the "central party" concept, and distinguish between programmatic buybacks and discretionary buybacks; 5. Federal Advance Applicability: Issuers meeting safe harbor conditions may opt out of reporting obligations or adopt a simplified annual certification to avoid state regulatory intervention. The HPC stated that without the aforementioned adjustments, the actual
Odaily News: The US IRS released Revenue Procedure 2026-20 on October 6, updating and replacing Revenue Procedure 2025-31 issued in November 2025, clarifying that qualifying investment trusts and grantor trusts may participate in PoS staking while retaining tax benefit treatment. The IRS recognizes compliant staking as a "property preservation activity," keeping the trust on the passive side and preserving its investment trust and grantor trust status (IRC Sections 671 to 677).The safe harbor contains 14 requirements, including that shares be listed on a national exchange, that only a single digital asset be held, that assets be custodied by a qualified custodian, that the liquidity policy be approved by the SEC, and that staking rewards not be hoarded. The guidance applies to tax years ending on or after November 10, 2025.
Odaily reports: Greenfield Capital, an early investor in Safe, has published an open letter stating that it has filed a regulatory complaint with the Swiss Federal Foundation Supervisory Authority (ESA) regarding the Safe Ecosystem Foundation. Greenfield Capital stated that it has never sold any SAFE tokens since investing in Safe in 2022, but the total assets held in Safe accounts have declined from approximately $6.6 billion at the beginning of 2024 to about $3 billion. Over the same period, total DeFi TVL grew by roughly 40% and stablecoin supply increased by 135%, while stablecoins within Safe grew by only 11%. The firm believes that Safe's share of the self-custody market is declining.Greenfield Capital stated that about a year ago, it was unable to form a reliable judgment based solely on information provided by the Safe team, so it conducted an independent review together with former employees, major users, ecosystem developers, and other investors, and concluded that the issues identified all ultimately related to governance. The firm had previously requested refreshing the foundation's board of directors with experienced and independent members, restructuring management and bringing in operators with experience scaling infrastructure businesses, and having the board lead a review of strategy, product, organizational structure, and tokenomics while setting quantifiable key performance indicators. Greenfield Capital said that since late 2025, it has made these requests to the foundation both directly and through legal counsel, but the foundation only established a strategy committee without decision-making authority and appointed people from existing circles to fill board vacancies, which ultimately led to the filing of the regulatory complaint with ESA. The firm emphasized that this action is not a lawsuit against individuals and that it does not intend to take over Safe; its concerns are limited solely to foundation governance and board composition. It remains positive about the work of the Safe Labs operating team and will continue to cooperate as an ecosystem participant and Safenet validator.
Greenfield Capital has filed a complaint with the Swiss federal foundation regulator ESA regarding governance issues at the Safe Ecosystem Foundation, alleging that Safe Foundation directors instructed personnel to hand over a substantial amount of SAFE tokens following the Bybit hack, and threatened to force Gnosis to sell its holdings—which account for approximately 10% of the total SAFE supply—and sever ties with Safe.
Odaily News: U.S. Securities and Exchange Commission (SEC) Commissioner Hester Peirce ended her term today. She served at the agency for more than 8 years, repeatedly dissenting when the commission chose to take enforcement action rather than formulate rules for the industry to follow, and earlier proposed a token safe harbor plan.Hester Peirce previously led the Crypto Task Force and stated that the SEC's duty to protect investors includes using its regulatory authority to provide regulatory boundaries for the rapidly expanding digital asset industry. (CoinDesk)
Odaily News: The U.S. Securities and Exchange Commission (SEC) has proposed rules related to crypto assets, aiming to establish a clear framework for eligible investment contracts and provide a targeted securities offering regime for token issuances, enabling related entities to raise funds while retaining investor protection measures. The proposed rules would allow crypto companies to issue up to $5 million in tokens over four years, or up to $75 million in tokens within 12 months, and provide a safe harbor to prevent cryptocurrencies from being deemed "investment contracts." Issuers would be required to disclose financial statements and provide ongoing reporting. The SEC did not include the previously anticipated "innovation exemption" for crypto stocks. The proposal comes just days after the U.S. Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act; the public will have 60 days to submit comments after the proposal is published in the Federal Register. SEC Chair Paul Atkins stated that congressional legislation remains essential for establishing rules that can be applied over the long term, and the SEC will continue to support Congress in advancing the CLARITY Act to President Trump. The Commodity Futures Trading Commission (CFTC) plans to discuss cryptocurrency, AI, and prediction market regulation on Thursday. (Cointelegraph)
Humanity released a post-mortem report on the H token security incident that occurred between June 8 and 9, stating that the incident was not caused by a smart contract vulnerability, but rather by a malware intrusion into a developer's device, which led to the leakage of private keys. Humanity stated that the attacker still holds the ProxyAdmin permissions for the ETH bridge and the BNB Chain token. Preliminary investigations confirmed that a colleague's device was infected with malware, which the attacker used to obtain the hot wallet private key of the administrator and the private keys for signing on 6 Gnosis Safe wallets. The team has hired an external security agency to conduct a forensic investigation and stated that they are formulating a recovery plan for affected users.
Humanity released an incident update stating that its H token was subject to a coordinated attack on Ethereum and BSC on the evening of June 8, resulting in approximately $36 million worth of tokens stolen and dumped across both chains. The project disclosed that the attack originated from a compromised employee laptop, which led to the leakage of multiple owner keys for the Gnosis Safe controlling the Hyperlane bridge ProxyAdmin. On Ethereum, the attacker seized ownership of the ProxyAdmin and upgraded the contract to a malicious implementation, transferring approximately 141.2 million H tokens in a single transaction. On BSC, after similarly gaining control of the ProxyAdmin, the attacker deployed a malicious implementation with infinite minting capabilities, minting 200 million H tokens in two transactions and continuously dumping them. Humanity has suspended deposits and withdrawals on the affected cross-chain bridge and is cooperating with exchanges and law enforcement to investigate the incident and seek partial recovery of the stolen funds.
Humility Protocol released a security incident update on the X platform, stating that its H token suffered a coordinated attack on the Ethereum and BSC chains yesterday, with confirmed losses exceeding $36 million in stolen and dumped assets.Preliminary investigations indicate the incident originated from a compromised employee computer, which led to the leakage of private keys for the multi-signature wallet controlling the Hyperlane Bridge ProxyAdmin. Specifically, the attacker obtained 3 out of 6 private keys of the Gnosis Safe wallet on the Ethereum chain, transferred ownership of the ProxyAdmin to a wallet under their control, upgraded the bridge contract to a malicious implementation, and subsequently transferred approximately 141.2 million H tokens in a single transaction.Simultaneously, the attacker also gained control of 3 out of 5 private keys of the Safe wallet on the BSC chain, took over the ProxyAdmin using the same method, deployed a malicious contract with unlimited minting functionality, and minted 200 million H tokens in two separate transactions to their own wallet.Humility stated that it has suspended all deposit and withdrawal operations on the affected bridge services and is collaborating with partners such as exchanges to mitigate losses. Meanwhile, it is cooperating with the police investigation and attempting to recover part of the stolen funds.
SUPERFORTUNE AI released a 24-hour investigation update stating that the May 27 GUA security incident was not, as previously suspected, address poisoning—but rather resulted from the leakage of private keys belonging to multi-signature signers. The attacker then forged valid signatures pointing to a malicious address and exploited the “premium address” feature—where the malicious address shared the same first four and last four characters as the legitimate address—to mislead the remaining signers into completing the signing process via the Safe interface.
According to an official announcement, Consensys submitted a comment letter to the U.S. Securities and Exchange Commission (SEC) on May 11, stating that the SEC’s latest interpretive framework for digital assets may leave regulatory gaps, creating compliance uncertainty for self-custodial wallet providers such as MetaMask. Consensys requested that the SEC clarify—through a targeted safe harbor or other exemption—that self-custodial, user-directed interfaces need not register as broker-dealers solely because they facilitate transactions involving non-security digital assets that may be associated with investment contracts. Consensys stated that this measure aims to ensure U.S. users can continue using open, neutral peer-to-peer blockchain tools.