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Clarity Act Fails March 1 Deadline as Stablecoin Yield Dispute Stalls Progress

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Clarity Act Fails March 1 Deadline as Stablecoin Yield Dispute Stalls Progress

The White House’s self-imposed deadline for banks and crypto to resolve their stablecoin standoff has come and gone.

With no deal in sight, trillions in institutional capital now hang in the balance.

Why it matters:

  • Stablecoin legislation is widely seen as the gateway to mainstream crypto adoption in the US.
  • Without it, regulatory uncertainty persists, enforcement risk rises, and innovation continues migrating to friendlier jurisdictions in Europe and Asia.

The details:

  • The March 1 deadline set by White House Crypto Council Executive Director Patrick Witt has passed without a compromise on stablecoin yield.
  • Crypto firms are pushing for the legal right to offer regulated rewards on stablecoins like USDC.
  • Meanwhile, banks, fearing deposit flight if users chase 4–5% stablecoin returns over 0.01% savings rates, are lobbying for strict limits or an outright ban.
  • A banking source told Crypto In America that while there’s broad agreement stablecoin balances shouldn’t earn direct interest, crypto firms are still attempting to engineer yield through “membership programs, rewards, and staking” — a workaround banks say is holding up the deal.
  • The OCC may have bolstered the banks’ position, signaling in its latest GENIUS Act rulemaking that stablecoin rewards could face tighter limits than the crypto industry anticipated.

The big picture:

  • Senate Banking Committee markup is now expected in mid-to-late March, with breakout negotiations penciled in for April and a soft July deadline before election-year paralysis sets in.
  • If no compromise is reached, the SEC and OCC could resort to enforcement actions to fill the policy vacuum.
  • Such a move could delay what JPMorgan has projected could be a massive institutional inflow wave by late 2026.

The post Clarity Act Fails March 1 Deadline as Stablecoin Yield Dispute Stalls Progress appeared first on BeInCrypto.

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Friday’s eth.limo Hijack Caused by Social Engineering on EasyDNS

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Friday’s eth.limo Hijack Caused by Social Engineering on EasyDNS

Ethereum Name Service gateway eth.limo has revealed that the domain hijacking on Friday was caused by a social engineering attack directed against EasyDNS, its domain name service provider. 

According to a postmortem published by eth.limo on Saturday, an attacker impersonated one of its team members to initiate an account recovery process with easyDNS, granting access to the eth.limo account and allowing them to alter domain settings.

“The NS records were changed and directed to Cloudflare… Once we understood that a DNS hijack had taken place, we immediately notified the community as well as Vitalik Buterin and others. We then began contacting EasyDNS in an attempt to respond to the incident,” the company said.

Eth.limo serves as a Web2 bridge, providing access to around 2 million decentralized websites using the .eth domain name. Hijacking the service could allow an attacker to redirect users to malicious websites. Ethereum co-founder Vitalik Buterin warned users Friday to avoid his blog until the incident was resolved.

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Mark Jeftovic, CEO of easyDNS, has publicly accepted responsibility for the incident in its own postmortem report. 

“We screwed up and we own it,” said Jeftovic on Saturday. 

“This would mark the first successful social engineering attack against an easyDNS client in our 28-year history. There have been countless attempts.”  

Both companies have pointed to the Domain Name System Security Extension (DNSSEC) in thwarting the hacker’s attempts to do further damage. 

The attacker couldn’t produce valid cryptographic signatures, so Domain Name System resolvers rejected the attacker’s forged DNS responses, causing users to see error messages instead of being redirected to malicious sites. 

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“DNSSEC was enabled for their domain when the attackers attempted to flip their nameservers, presumably to effect some manner of phishing or malware injection attack, DNSSEC-aware resolvers, which most are these days, began dropping queries,” Jeftovic said. 

Source: eth.limo

In its postmortem, eth.limo noted that because the attacker lacked the signing keys, they were unable to bypass the safeguards, which likely “reduced the blast radius of the hijack. We are not aware of any user impact at this time. We will provide updates if that changes.”

easyDNS makes changes since the attack

Jeftovic described the social engineering attack as “highly sophisticated,” and said easyDNS is still conducting a post-mortem on how the breach occurred, and has already begun rolling out changes to prevent a recurrence.

Source: easyDNS

“In eth.limo’s case, we will be migrating them to Domainsure, which has a security posture more suited toward enterprise and high-value fintech domains, TLDR there is no mechanism for an account recovery on Domainsure, it’s not a thing,” he added.

“On behalf of everyone here, I apologize to the eth.limo team and the wider Ethereum community. ENS has always had a special place in our heart as the first registrar to enable ENS linking to web2 domains and we’ve been involved in the space since 2017.”

Related: RaveDAO denies manipulation as Binance, Bitget probe RAVE trading activity

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The eth.limo incident is the latest in a series of domain hijackings targeting crypto projects. Days earlier, decentralized exchange aggregator CoW Swap lost control of its website after an unknown party hijacked its domain. 

Steakhouse Financial, a DeFi advisory and research firm, similarly disclosed at the end of March that it had lost control of its domain to an attacker.

Magazine: Will the CLARITY Act be good — or bad — for DeFi?