Tag: Layer 2

In a notable departure from its previous stance, the Federal Reserve has withdrawn guidance requiring banks to seek approval before engaging in crypto and stablecoin activities. The move, which aligns with similar steps by the FDIC, shifts regulatory scrutiny from pre-emptive barriers to standard supervisory review—effectively reframing crypto engagement as a matter of risk management, not special permission.

ZKsync’s recent exploit resolution highlights the uneasy normalisation of bounty-based restitution in decentralised finance. While the protocol successfully recovered nearly $5 million through a safe-harbour arrangement, the broader context—$1.67 billion in quarterly crypto losses—underscores how rare such recoveries have become. As administrative keys remain a critical vulnerability, governance now faces the more delicate task of deciding what restitution, if any, looks like in practice.

From behind the bars of a high-security prison, Sam Bankman-Fried passionately defended his innocence in the FTX collapse during a phone call with The New York Sun, hinting at a political pivot toward Trump and criticising the legal process that led to his 25-year sentence.