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Aave Labs Proposes New DAO Value Accrual and Growth Framework

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AAVE Chart - CoinGecko

The new proposal aims to resolve the ongoing debate and align the interests of equity holders and token holders.

Two months after the Aave DAO and Aave Labs clashed on the DeFi platform’s governance forum, Aave Labs has formally submitted a new strategic framework proposal to the DAO called “Aave Will Win.”

The proposal intends to align the DAO and Labs over the future growth of Aave v4, and to direct 100% of product-layer value directly to the DAO.

Specifically, the proposal requests that the DAO ratifies Aave v4 as the protocol’s core foundation for future development, establishes a funding and growth framework to compete at a global financial scale, and formalizes a model where 100% of revenue generated by Aave-branded products, including those built by Labs, flows to the DAO treasury.

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If passed, the deal would clarify structure and align incentives between the DAO and Labs, potentially serving as a landmark decision on tokenholder rights, which were called into question in December by Ernesto Boado, the former chief technical officer (CTO) at Aave Labs.

“The framework formalizes Aave Labs’ role as a long-term contributor to the Aave DAO under a token-centric model, with 100% of product revenue directed to the DAO,” said Stani Kulechov, the founder of Aave Labs.

“As onchain finance enters a decisive new phase, with fintechs and institutions entering DeFi, this framework positions Aave to capture major growth markets and win over the next decade,” Kulechov concluded.

While rumors have been circulating that major changes were coming to Aave, some prominent delegates, such as Marc Zeller of the Aave-Chan Initiative (ACI), were quick to dismiss them, saying, “there’s nothing positive on the short term, but i guess good try.”

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It is unclear whether Zeller was privy to this proposal and whether his statements pertain directly to it.

Aave remains DeFi’s leading lending protocol, accounting for more than 50% of the total lending market with more than $52 billion in cumulative net deposits. Despite the protocol’s long-standing success, its native token has struggled alongside the rest of the altcoin market and is down 56% over the last year.

While the proposal is far from finalized, tokenholder alignment and DAO value accrual could potentially be a tailwind for the AAVE token.

AAVE Chart - CoinGecko
AAVE Chart – CoinGecko

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SEC Under Fire: Paul Atkins Faces Questions on Crypto Regulation Pause

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR

  • SEC Chair Paul Atkins is under scrutiny for pausing the case against Justin Sun.
  • Democratic lawmakers question whether political ties influence the SEC’s enforcement decisions.
  • The SEC’s overall legal actions dropped by 30% in 2025, with a 60% decline in crypto-related cases.
  • Paul Atkins defends the SEC’s approach, emphasizing a balanced enforcement strategy.
  • Lawmakers express concerns about the SEC’s decision to drop high-profile crypto cases like Binance and Ripple.

The U.S. Securities and Exchange Commission (SEC) Chair, Paul Atkins, is facing increased scrutiny from lawmakers regarding the agency’s shifting approach to cryptocurrency regulation. At a House Financial Services Committee hearing, lawmakers questioned his leadership as the SEC’s enforcement actions have slowed. The hearing focused on the SEC’s decision to pause the case against Tron founder Justin Sun, amid concerns about political connections and the agency’s declining crypto-related actions.

Paul Atkins Faces Lawmaker Scrutiny Over Enforcement Shifts

During the hearing, Democratic lawmakers voiced concerns about the SEC’s decision to pause the case against Justin Sun, founder of Tron. Representative Maxine Waters questioned whether industry ties to former President Donald Trump influenced the agency’s enforcement actions. She also pointed to the broader decline in enforcement efforts after Trump took office, and new leadership under Paul Atkins was appointed to the SEC in 2025.

Waters specifically referenced the SEC’s 2023 lawsuit against Sun. The lawsuit accused him of organizing the unregistered sale of crypto securities related to the TRX and BTT tokens and manipulating trading volumes. However, in February 2025, the SEC requested that a federal court pause the case. Since then, Sun has emerged as a prominent financial backer of Trump-affiliated crypto ventures.

SEC Chair Defends Reduced Enforcement in Cryptocurrency Cases

Atkins defended the SEC’s approach, asserting that the agency continues to pursue a robust enforcement effort. He emphasized that the SEC is still active in bringing cases against violators, but the total number of actions has dropped. According to Cornerstone Research, the SEC’s overall legal actions fell 30% in 2025, with crypto-related cases dropping by 60%.

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When asked about the SEC’s leniency toward some high-profile crypto cases, including those involving Binance, Ripple, Coinbase, Kraken, and Robinhood, Atkins responded cautiously. He declined to discuss specific cases, citing confidentiality concerns. However, he did reiterate his commitment to a balanced approach in overseeing the cryptocurrency market.

Lawmakers Raise Concerns About SEC’s Crypto Enforcement Priorities

Lawmakers were quick to question the SEC’s decisions to drop several high-profile cases against major players in the crypto industry. The SEC dismissed its lawsuit against Binance in May 2025, which had accused the company of offering unlicensed services and misleading investors about its trading controls. The agency also ended litigation involving Ripple, Coinbase, and other firms linked to the crypto industry.

Representative Stephen Lynch expressed frustration, asking how such high-profile cases could end without any enforcement actions. He emphasized the reputational damage the SEC has suffered due to these decisions. Despite these concerns, Paul Atkins maintained that the agency’s overall strategy is focused on ensuring market integrity while maintaining flexibility in enforcement.

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Coinbase Misses Expectations With $667M Loss in Q4

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Coinbase Misses Expectations With $667M Loss in Q4

Coinbase reported a net loss of $667 million in the fourth quarter of 2025, snapping the crypto exchange’s eight-quarter straight streak of profitability.

In its Q4 earnings released on Thursday, Coinbase said its earnings per share came in at 66 cents, which missed analyst expectations of 92 cents per share by 26 cents.

The company said its net revenue fell 21.5% year-on-year to $1.78 billion, falling short of analyst expectations of $1.85 billion.

Transaction-related revenue dropped nearly 37% year-on-year to $982.7 million, while subscription and services revenue jumped more than 13% from the year prior to $727.4 million.

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It’s the first net loss Coinbase has reported since the third quarter of 2023, and comes as the crypto market fell over the quarter, with Bitcoin (BTC) dropping nearly 30% from a high of $126,080 in early October to under $88,500 by Dec. 31.

Bitcoin has fallen 25.6% to $65,760 so far this year, having climbed from a crash to under $60,000 earlier this month.

Despite the earnings miss, shares in Coinbase (COIN) rose 2.9% in after-hours trading on Thursday to $145.18 after a 7.9% decline over the trading day to close at $141.1.

Key financial results for Coinbase in Q4 and the 2025 financial year. Source: Coinbase

For its Q1 outlook, the crypto platform said that it had generated $420 million in transaction revenue as of Feb. 10 but expects its subscription and services revenue to fall from $727.4 million to the $550 million to $630 million range.

Coinbase added that 2025 was a “strong year” for the company, both operationally and financially, with its full-year 2025 revenues climbing 9.4% from 2024 to $6.88 billion.

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Related: Coinbase unveils crypto wallets designed specifically for AI agents

“In 2025, more than 12% of all crypto in the world resided on Coinbase,” the company said. “We’re building and connecting more products to facilitate customers doing more with their assets.”