Aave: conflict between the DAO and Aave Labs

Aave: conflict between the DAO and Aave Labs

The Aave community is facing a decisive moment with a major governance conflict between the Aave DAO and Aave Labs, the technical entity that originally launched the protocol. The dispute centers on control over the roadmap, strategic direction, and how community funds should be allocated, and it could set a precedent for decentralized finance as a whole.
 
At the core of the tension lies a divergence of approaches. Some believe the future of the protocol should be driven entirely by decentralized governance through token holder votes, while others argue that the founding entity must retain significant influence to ensure coherence and execution speed. The Aave DAO, composed of contributors and stakeholders across the globe, insists that key decisions must be made transparently through community voting.
 
Aave Labs, on the other hand, argues that its technical expertise and experience accumulated since the protocol’s inception give it legitimacy to steer certain decisions without relying on lengthy or fragmented voting processes. This disagreement applies in particular to proposals involving treasury usage, the launch of new DeFi products, and the evolution of security and incentive mechanisms.
 
The debate has quickly intensified. Some community members accuse Aave Labs of attempting to centralize decision-making power, which they see as contrary to the very spirit of DeFi. Others counter that without strong coordination, decentralized protocols risk fragmentation or stagnation, unable to adapt quickly to constantly changing market conditions.
 
This conflict goes far beyond an administrative disagreement. It symbolizes a maturation phase for DeFi, where governance mechanisms are being tested at scale and where ecosystems must find a balance between ideal decentralization and operational efficiency. The outcome could influence how other protocols design their own governance frameworks in the future.
 
While some observers fear a lasting rift within the Aave ecosystem, others view the confrontation as a healthy clash of ideas that could strengthen the protocol over the long term. In any case, the standoff between Aave DAO and Aave Labs is shaping up to be one of the most closely watched governance episodes in the history of decentralized finance.
 

Pro-Bitcoin senator Cynthia Lummis will not seek re-election

Cynthia Lummis, one of the most prominent pro-Bitcoin figures in U.S. politics, has announced that she will not seek re-election to the Senate in 2026. Elected in 2020 to represent Wyoming, she will complete her current term, which ends in January 2027, before stepping away from congressional life. She cited the physical and personal demands of another election cycle, as well as the length of an additional term, as key reasons for her decision.
 
During her time in Congress, Cynthia Lummis emerged as a central voice in crypto-related debates. She repeatedly defended Bitcoin as a strategic store of value, even proposing that the United States hold BTC as part of its national reserves. She also supported initiatives aimed at clarifying regulatory frameworks, distinguishing digital assets from traditional securities, and providing greater legal certainty for industry participants.
 
Her departure has triggered strong reactions within the crypto community, which viewed her as a rare and influential ally within U.S. institutions. Many fear her exit will leave a gap at a time when crypto regulation remains fragmented and often hostile. Lummis served as a bridge between the crypto ecosystem and the political sphere, capable of elevating these issues to the highest levels of government.
 
Before the end of her mandate, the senator stated she would continue working on digital asset issues. Her departure now raises the question of succession. The ability of Congress to produce new lawmakers supportive of financial innovation could significantly shape the future regulatory landscape for Bitcoin and cryptocurrencies in the United States.
 
 

Trust Wallet hack: over 7 million dollars stolen

A major hack involving Trust Wallet has resulted in the loss of more than 7 million dollars in user funds. The breach was discovered when multiple users reported unauthorized transactions from their wallets, without any action or signature on their part. The theft appears to have targeted various tokens across different blockchains, suggesting a vulnerability affecting a component widely used by wallet holders.
 
Victims report that their wallets were drained through automated transactions, transferring funds to unknown addresses. Total losses exceed 7 million dollars, making this one of the most costly incidents involving Trust Wallet to date.
 
Early technical analysis suggests the attacker may have exploited phishing websites or malicious applications designed to trick users into signing harmful transactions. In several cases, users appear to have interacted with interfaces mimicking legitimate platforms or DeFi services, unknowingly approving contract permissions that later allowed the hacker to access their funds.
 
Trust Wallet issued a warning urging users to remain vigilant and carefully verify the legitimacy of applications and websites they connect to. The team reiterated that private key security remains entirely the responsibility of the user, and that the wallet cannot reverse transactions or recover stolen funds once they are confirmed on the blockchain.
 
This type of attack once again highlights the risks associated with non-custodial wallets. While these tools provide full control over assets, they also expose users to sophisticated social engineering tactics if cybersecurity best practices are not followed.
 
At this stage, no public information has identified the perpetrator, and the receiving addresses have not been linked to known entities. Victims are now coordinating reports with authorities and blockchain analytics firms in hopes of tracing the funds and potentially recovering part of the losses through international cooperation.
 

A new pro-crypto chair at the CFTC

The U.S. Commodity Futures Trading Commission is entering a new chapter with the appointment of a new chair who has quickly reaffirmed a pro-crypto stance. From the outset, he emphasized his intention to support innovation while maintaining a clear and coherent supervisory framework. This approach contrasts with years of regulatory tension and uncertainty that have characterized the digital asset sector in the United States.
 
The new leader views blockchain and cryptocurrencies as a structural evolution of financial markets. Rather than stifling development, the CFTC aims to create an environment where innovation can thrive without fear of shifting legal interpretations. This strategy seeks to strengthen U.S. competitiveness against more crypto-friendly jurisdictions while ensuring investor protection.
 
This shift comes as the CFTC’s mandate may expand, particularly regarding spot crypto markets. Such a change would position the agency as a central regulator for digital assets, either alongside or in place of other U.S. authorities. The new chair has expressed support for stronger institutional coordination to reduce the current regulatory confusion.
 
For the crypto ecosystem, this signal is seen as encouraging. It suggests a potential normalization of relations between regulators and industry players, with more dialogue and clearer rules. If this pro-innovation approach materializes in practice, it could help stabilize the regulatory environment and restore the attractiveness of the United States for crypto projects.