The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, spoke at a keynote fireside chat at CryptoCompare and Solidus Labs’  DACOM conference, featuring former SEC chair Jay Clayton. In their chat, both said they see a productive future for the crypto industry under an “environment of trust.”

Decentralized Finance (DeFi) protocol Badger DAO has fallen victim to an exploit that saw attackers steal $10 million in various cryptocurrencies from the BadgerDAO yield vault protocol.

Fidelity Investments is set to launch a new bitcoin spot exchange-traded fund (ETF) in Canada, called Fidelity Advantage Bitcoin. The product is pending approval to launch this week. The move will make fidelity the largest asset manager offering a Bitcoin ETF.

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Top stories in the Crypto Roundup today:

• SEC Chair Gary Gensler Expects Crypto Industry to Consolidate
• Badger DAO Exploited for $10 Million in ‘Unauthorized Withdrawals’
• Fidelity to Launch Spot Bitcoin ETF in Canada
• What is Polkadot?
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SEC Chair Gary Gensler Expects Crypto Industry to Consolidate

The Chairman of the U.S. Securities and Exchange Commission (SEC), Gary Gensler, spoke on a keynote fireside chat at Solidus Labs’ and CryptoCompare’s DACOM conference,  featuring former SEC chair Jay Clayton. In their chat, both said they see a productive future for the crypto industry under an “environment of trust.”

Both agreed that the path to regulation will become easier as the space consolidates. The two broke down why neither of their regulatory regimes have successfully overseen the industry, pointing to the distributed nature of crypto as the reason.

Clayton noted the digital asset industry is “very dispersed globally,” which makes a “single regulatory net much more challenging.” The regulators expect the industry to consolidate the same way traditional markets consolidated around the New York Stock Exchange. Gensler added:

"Just as we saw with the internet early days, the internet saw loads much competition in the 1990s, and then we see high concentration after that."

During the event, Gensler also said he is worried about a significant financial stability event in the cryptocurrency space that could affect the public’s trust in the technology. The spill could come in the form of lending, stablecoins, or insufficient information reaching investors, giving way for fraud or well-meaning mistakes.

Badger DAO Exploited for $10 Million in ‘Unauthorized Withdrawals’

Decentralized Finance (DeFi) protocol Badger DAO has fallen victim to an exploit that saw attackers steal $10 million in various cryptocurrencies from the BadgerDAO yield vault protocol.

Badger DAO confirmed on social media it saw “unauthorized withdrawals of user funds.” On community channels, users have been speculating the hack is a result of an exploit in the Badger.com user interface and not in the core protocol contracts. Many affected users have revealed that while claiming yield farming rewards and interacting with Badger vaults their wallet providers prompted spurious requests for additional permissions.

Badger core contributor Tritium wrote:

“It looks like a bunch of users had approvals set for the exploit address allowing [the address] to operate on their vault funds and that was exploited.”

The team froze all vaults in response to the exploit to stop more funds from being withdrawn. Observers have said the hacker stole 186 WBTC, 136,000 cvxCRV, 64,000 veCVX, and various forms of synthetic bitcoin worth over $10 million.

Fidelity to Launch Spot Bitcoin ETF in Canada

Fidelity Investments is set to launch a new bitcoin spot exchange-traded fund (ETF) in Canada, called Fidelity Advantage Bitcoin. The product is pending approval to launch this week. The move will make fidelity the largest asset manager offering a Bitcoin ETF.

The move only further fuels the institutional push for approval of a spot-based Bitcoin ETF in the U.S. Such approval has been supported by other companies including Grayscale, which filed for the conversion of their popular GBTC product into a spot Bitcoin ETF.

A Bitcoin spot ETF enables a more robust offering of investment vehicles that would provide investors exposure to the flagship cryptocurrency. Such an ETF would help unlock new pools of capital previously hesitant to move into a futures-based market.

What is Polkadot?

Polkadot is a blockchain network often described as a “blockchain of blockchains,” as it allows users to launch and operate their own blockchains on top of the main Polkadot blockchain. This main blockchain, called the relay chain, does not support smart contracts, but other blockchains connected to it can support them.

As a result, Polkadot is set to become a growing ecosystem of cryptocurrencies that competes with other smart contract networks such as Ethereum, the Binance Smart Chain, and more. It was launched in 2020 and brings a number of technical features that help it reach its goal.

The user-created blockchains, called parachains, benefit from the same security of the relay chain where transactions are permanent, but can be customized by the users. Polkadot’s design allows it to become a network of blockchains with secure transactions and varying features, all while using the resources of its relay chain.

Learn more about Polkadot below:

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