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Reuters: U.S. Crypto Framework Bill Stalls in New Deadlock Due to Banking Industry's Intransigence

According to Reuters, negotiations on cryptocurrency legislation in the U.S. have hit a new impasse as the banking sector has stated it cannot support the compromise proposed by the White House. This proposal allows stablecoin issuers to offer yield products in specific scenarios such as peer-to-peer payments, but prohibits offering yields on idle holdings. Crypto companies have accepted this compromise, but banks still wish to strictly limit the scope of businesses that can offer rewards, believing that the related terms could trigger deposit outflows. Standard Chartered estimates that by the end of 2028, stablecoins could siphon off about $500 billion in deposits from the U.S. banking system.Trump posted on the Truth Social platform that he would not allow the banking sector to "undermine our strong crypto agenda." Companies in the crypto industry, including Coinbase, Ripple, and the Blockchain Association, have participated in the negotiations. Blockchain Association CEO Summer Mersinger stated that "the path to a viable agreement is clearer than it was a month ago."The bill also faces other challenges: it needs the support of at least seven Democratic senators, and some Democrats are calling for a ban on elected officials profiting from crypto businesses, while other lawmakers are urging the inclusion of stricter anti-money laundering provisions. The bill also needs to be reconciled with the version from the Senate Agriculture Committee and compete for scheduling in a limited Senate agenda alongside other bills such as housing policy reform. Adrian Wall, Managing Director of the Digital Sovereignty Alliance, stated that if the bill is not sent to the president for signing by July, the midterm elections will close the window for passage.

Aave Labs releases the complete transparency audit report for the Aave V4 security program

According to official news, Aave Labs has released the complete transparency report of the Aave V4 security program, including methods, processes, and results, endorsed by several security agencies such as Trail of Bits, Blackthorn, and Certora.Through manual audits, formal verification, invariant testing, fuzz testing, and public security competitions, approximately 345 days of security reviews have been conducted. The program is supported by a dedicated security budget of $1.5 million approved by the DAO.Aave Labs announced that it will continue five core commitments from the Aave V4 security program: embedding formal verification in the early development stages to ensure that architectural design is guided by secure methodologies rather than just verification; adopting a layered security approach, including manual reviews, formal verification, invariant testing, AI-assisted checks, fuzz testing, and public security competitions to cover more potential vulnerabilities; maintaining continuous security coverage, with formal verification frameworks and invariant testing suites running continuously alongside protocol iterations; establishing a long-term bug bounty program to leverage a broader security community for ongoing monitoring; and optimizing AI scanning capabilities to continuously enhance the level of intelligent security detection in future versions based on existing testing experiences.

Bybit releases 2025 security milestone: intercepts fraudulent funds of up to $300 million with a new AI-driven risk framework

The world's second-largest cryptocurrency exchange by trading volume, Bybit, today officially announced the comprehensive results of its 2025 Security Initiative. Bybit has built an industry-leading multi-layer defense architecture, successfully protecting the safety of tens of thousands of users and setting a new benchmark for proactive risk control in the digital asset space. According to a report by Chainalysis, global cryptocurrency losses due to scams and fraud reached as high as $17 billion in 2025.Redefining Industry Standards: Three-Tier Withdrawal Fraud Defense FrameworkTo break through the limitations of traditional post-event remediation in risk control, Bybit has pioneered a dynamic risk grading protection system that intervenes proactively before financial losses occur. This system categorizes potential fraud scenarios into three risk levels, each matched with differentiated response strategies—ensuring user withdrawal safety while maintaining a smooth trading experience on the platform.Level 1: Early Warning (Low Risk)Leveraging big data heuristic algorithms to identify abnormal behavior patterns (e.g., large withdrawals concentrated to a single new address), Bybit automatically triggers a risk questionnaire survey. Relevant insights assist the risk control operations team in blacklisting high-risk addresses in advance, achieving source interception.Level 2: Real-Time Warning (Medium Risk)When an account is flagged due to database breaches (cross-referencing external network leak data) or associated with suspicious withdrawal addresses, Bybit will trigger a real-time pop-up reminder during the withdrawal process. This mechanism guides users to pause operations and review transaction details, effectively resisting social engineering attacks that rely on urgency or emotional pressure.Level 3: Instant Interception + Cooling-Off Period (High Risk)For wallet addresses confirmed to be involved in fraud (including so-called "pig-butchering" investment scams), Bybit implements real-time withdrawal interception and enforces a 1-hour cooling-off period mechanism. This critical time window provides users with essential assurance to regain rational judgment and verify the authenticity of transactions.Overview of 2025 Achievements and Core DataThe measures implemented in the fourth quarter of 2025 have brought breakthrough results in user safety protection:Q4 Fraudulent Fund Interception and Recovery: Bybit successfully intercepted and recovered $300 million through proactive reminders, safeguarding the life savings of over 4,000 users;Q4 AI-Driven Risk Identification: Bybit's self-developed AI algorithm accurately identified 350 high-risk investment scam addresses through on-chain data analysis, helping 8,000 users avoid potential withdrawal losses;2025 Annual Infrastructure Resilience: The platform successfully withstood over 3 million hacker database breach (account hijacking) attacks;Q4 On-Chain Proactive Monitoring: The system automatically flagged 350 risk addresses, and the ticket operations team manually reviewed and marked 600 addresses, cumulatively avoiding nearly $1 million in immediate fraud losses.Co-Building a Safe Ecosystem: Industry Collaboration and Government-Enterprise LinkageBybit firmly believes that safety should not be a competitive barrier but a shared responsibility across the industry. The strategic focus for 2025 is on deep integration of external intelligence:"In 2025, our mission is to upgrade the risk control system from a 'silent shield' to a proactive, intelligent safety guardian," said David Zong, Head of Risk Control at Bybit Group. "By deeply integrating AI-driven on-chain monitoring with real-time intelligence from industry partners like TRM, Elliptic, and Chainalysis, we not only protect Bybit users but also help map the 'genetic blueprint' of fraud networks. We are opening and sharing these standardized monitoring clues across the entire ecosystem—because the safety of the industry begins with the safety of each participant."
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