Aave Labs, KelpDAO, LayerZero, EtherFi, and Compound filed an amended Constitutional AIP seeking to update the execution path for the previously approved transfer of 30,765 ETH frozen by the Arbitrum Security Council following the April 18 rsETH exploit. The amendment comes after a May 8th court order, which authorized the onchain transfer but required the ETH to move to a wallet controlled by Aave LLC rather than the originally proposed 3-of-4 Gnosis Safe.

The amendment only changes the recipient address and custody mechanics. The recovery objective remains the same: restoring rsETH's backing within the Kelp protocol. Aave LLC will need to hold the ETH under the terms of the restraining notice from Kim v. DPRK and cannot use the funds until the court rules further. Arbitrum delegates can now vote on the amended proposal onchain.

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Senate Banking Committee Chairman Tim Scott released the latest draft of the Digital Asset Market Clarity Act ahead of a markup scheduled for Thursday, May 14. The White House is targeting July 4 for House passage, with four working Senate weeks in June reserved for Senate floor consideration. The nine-title bill draws a firm line between the SEC and CFTC by distinguishing between digital commodities and ancillary assets.

Ancillary assets are coined as network tokens whose value depends on entrepreneurial or managerial efforts. A new exemption called Regulation Crypto would allow ancillary asset issuers to raise capital from retail investors without full securities registration, capped at $50 million per year over four years or 10% of outstanding asset value, with a hard ceiling of $200 million.

On DeFi, the bill defines a protocol as decentralized only if no single person has the practical ability to control, alter, or censor its operations. The bill's most contested provision, Section 404, prohibits covered digital asset service providers from paying passive, deposit-like interest on payment stablecoin balances. The exact contours of permissible yield programs will be left to joint rulemaking by the SEC, CFTC, and Treasury.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created

The Ethereum Foundation named new leadership for its Protocol cluster, the EF's research and development arm focused on scaling, UX, and L1 hardening. Will Corcoran, Kev Wedderburn, and Fredrik will co-lead the cluster, succeeding Tim Beiko, Barnabé Monnot, and Alex Stokes.

Beiko, who spent eight years at the EF, stepped down from the foundation this month. Monnot, a six-year EF veteran, also announced his departure.

Stokes is taking a sabbatical. The incoming co-leads bring distinct expertise to the role: Corcoran through cross-team coordination on zkVM proving and post-quantum consensus, Wedderburn as head of the ZKEVM team, and Fredrik through Protocol Security and the Trillion Dollar Security project. Their immediate priorities are shipping Glamsterdam, advancing Hegotá scoping, and executing the Ethereum protocol strawmap.

Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created