Aave’s decentralized governance body is being asked to contribute 25,000 ETH from its treasury to a coordinated recovery effort following the April 18 exploit of Kelp DAO’s rsETH bridge, according to a proposal published Thursday by Aave service provider TokenLogic.

The contribution would make Aave the largest single donor to a coalition called “DeFi United,” which also includes EtherFi, Lido, Ethena, Mantle, Ink Foundation, BGD Labs, and several individual contributors. Together, the group is working to restore the full backing of rsETH and protect users across affected Aave V3 markets.

The April 18 attack drained 152,577 rsETH from Kelp’s LayerZero bridge adapter, creating an original shortfall of approximately 163,183 ETH. Subsequent recoveries have reduced that figure: Kelp froze tokens worth roughly 43,168 ETH, the Arbitrum Security Council froze 30,766 ETH held by the attacker, and liquidations of the hacker’s positions on Aave and Compound are expected to recover an additional 14,168 ETH. The residual funding gap currently stands at approximately 75,081 ETH.

To close that gap, the proposal outlines a funding stack combining public donations totaling 14,570 ETH, a 30,000 ETH credit facility from Mantle, and the requested 25,000 ETH from the Aave DAO treasury.

Executing the recovery requires placing the full 120,015 ETH into the LayerZero lockbox upfront. Because several recovery streams are not yet liquid, short-term bridge loans are being arranged separately to cover the timing gap.

The proposal also authorizes Aave Labs to pledge DAO assets and future protocol revenue as collateral to secure funding arrangements. The proposal notes the plan depends on external actions including Kelp reopening withdrawals, LayerZero reopening its bridge, and the Arbitrum Security Council releasing frozen funds.

The proposal is currently in the community feedback stage before proceeding to a Snapshot vote.

Sources: Aave Governance | Aave Twitter | DeFi United

This article was generated automatically by The Defiant’s AI news system from publicly available sources.

The Fellowship political action committee (PAC), which launched claiming to have more than $100 million from crypto-aligned backers, has reportedly backed out of an advertising deal to support Texas Attorney General Ken Paxton in a crucial US Senate race.

According to a Thursday report from Axios, Republican leaders contacted US Commerce Secretary Howard Lutnick on his connections to Fellowship, which has been partially funded by Cantor Fitzgerald.

Lutnick, as the former president and CEO and whose sons are now in charge of the financial services company, reportedly faced questioning from Republicans about Fellowship’s support of Paxton, whom on Tuesday the PAC reported spending $1.75 million in supportive advertising.

Fellowship PAC expenditure report on Ken Paxton. Source: FEC

The advertising expenditure, which Fellowship disclosed to the Federal Election Commission (FEC) through the marketing company Nxum Group, was reportedly never placed. As of Friday, the FEC filing showing the $1.75 million expenditure was still public. Cointelegraph reached out to Fellowship for comment but did not receive an immediate response.

A crypto-backed PAC like Fellowship backing out of support for a candidate in a US Senate race, possibly in response to pressure from Republican leaders, is somewhat unusual. Political action committees tied to digital assets support candidates on both sides of the aisle who they consider pro-crypto.

Along with Fellowship, PACs like Fairshake and others are expected to spend a combined hundreds of millions of dollars in the US midterm elections after pouring money into ads for 2024 candidates to influence voters. 

Related: White House confirms Trump to address memecoin gala on Saturday

Paxton, who failed to win outright in a March primary against Senator John Cornyn, will face the Republican incumbent in a May 26 runoff before the November general election. Whichever Republican wins a majority of the vote will likely face off against Democrat James Talarico in a race for one of Texas’ US Senate seats.

Crypto entities calling for action on market structure bill in Senate

Republicans have held a slim majority in the US Senate since January 2025, leading to the passage of the stablecoin bill, the GENIUS Act, and the consideration of other pieces of crypto legislation. However, if Democrats gain majority control of the chamber in the 2026 midterm elections, it could change how the Senate approaches crypto laws.

Since July 2025, the Senate has been considering a bill on crypto market structure, expected to be one of the most comprehensive pieces of legislation affecting the industry. Delays, in part due to government shutdowns, ethics concerns and questions about stablecoin yield, have persisted for months, with no vote on the bill scheduled in the full chamber.

On Thursday, more than 120 entities affiliated with the cryptocurrency and blockchain industry urged Senate Banking Committee leaders to stop stalling on advancing the market structure bill, the CLARITY Act. The committee will need to hold a markup on the bill before the Senate can potentially schedule a vote.

Magazine: AI-driven hacks could kill DeFi — unless projects act now

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Bitcoin remained anchored around the $78,000 level on Friday as markets awaited fresh geopolitical and macro cues amid heightened U.S.-Iran tensions. The absence of a decisive catalyst kept risk assets in a cautious, sideways drift, even as oil and equities wobbled in response to the evolving backdrop.

With U.S. equities treading water and oil oscillating near the high $90s to mid-$95 per barrel area, traders said the market’s next move hinges on clarity over the Middle East conflict and its potential spillovers into energy prices and economic growth. The lack of a clear triggers pushed Bitcoin into a consolidative phase, slowing any attempt to reclaim the $80,000 ceiling that has been a looming target for months.

“Market is eagerly awaiting clarity from the conflict in the Middle East. The longer it drags on and oil keeps moving higher, the more pressure will be put on these assets.”

— Daan Crypto Trades, via social commentary on market dynamics

Key takeaways

• Bitcoin trades near $78,000, struggling to push back above $80,000 as U.S. stocks drift and oil prices stay firm.
• Oil’s resilience and geopolitics loom as near-term risk catalysts, with traders watching how energy moves influence risk appetite.
• Earnings season is viewed as a potential driver for the next leg higher in equities, which could spill over into crypto.
• Analysts warn of vulnerability around nearby bid liquidity and the possibility of a deeper retracement if macro cues worsen.

Markets pause as BTC hangs near a pivotal level

TradingView data reflect a quiet price action for BTC as the week closes, with the benchmark hovering around the $78,000 area. The lack of a clear directional impulse kept Bitcoin anchored, even as macro components painted a mixed picture: U.S. equities paused after a period of strength, while crude futures retraced from earlier peaks but stayed elevated relative to late-year lows.

In social-dial commentary, traders highlighted the delicate balance between growth optimism and geopolitical risk. The absence of new cues from the Iran-related developments left risk-on assets in a state of limbo, characterized by tight ranges and cautious positioning.

Meanwhile, the broader commodity complex showed oil trading in a high-range channel, with volatility linked to supply expectations and geopolitical risk. The energy-price backdrop remains a key variable for the trajectory of risk assets, including BTC.

Analysts and traders weigh the next move

As Bitcoin clings to critical support, several traders flagged potential headwinds for a sustained upside move. One market observer noted that the immediate price structure suggests the possibility of a deeper retracement if the current macro environment persists without a clear catalyst.

In the meantime, analysts emphasized the role of earnings season in shaping risk appetite. Mosaic Asset Company argued that positive earnings momentum would be essential to sustain any upside for equities, noting that the S&P 500 had been marching toward record highs as the reporting cycle approached. Their analysis underscores the dynamic between corporate fundamentals, equity risk, and the spillover into crypto markets.

Technically, observers also monitored order-book dynamics and liquidity around key levels. Material Indicators observed that bid liquidity near the $76,500 area had already shown signs of vulnerability, with lower-timeframe order flow trending downward. They added that it was surprising liquidity below the spot price had not been withdrawn, a factor that could precipitate a sharper move if the market loses momentum.

Other data points pointed to a potential news-driven push in the near term. A separate analysis thread highlighted that BTC’s price action in the lower timeframes had run up into a short-term peak, suggesting the rally could falter without fresh fundamental catalysts.

What to watch next

The coming sessions will hinge on geopolitical developments, energy-price movements, and the trajectory of corporate earnings. If the Middle East tension cools and oil resumes a clear downtrend, risk assets could gain room to extend, potentially nudging BTC back toward the $80,000 level. Conversely, renewed volatility or a deterioration in macro indicators could test support near the mid-to-high $70,000s.

Traders should watch liquidity around critical levels, the evolution of the earnings outlook, and any unexpected shifts in oil markets that could alter risk sentiment. The path forward remains uncertain, but the next moves in equities, energy, and macro data will likely dictate Bitcoin’s near-term direction.

US banking groups have escalated their campaign against the CLARITY Act by calling Senate offices directly, with the North Carolina Bankers Association confirmed on April 18 to be urging member banks to phone Senator Thom Tillis’s office personally to demand changes to the stablecoin yield compromise already agreed with the crypto industry.

Fox Business journalist Eleanor Terrett reported on April 18 that the North Carolina Bankers Association, a state banking trade group, was sending emails to member banks urging them to call Senator Thom Tillis’s office directly and weigh in against the stablecoin yield compromise language in the CLARITY Act. The move came just weeks after Tillis and Senator Angela Alsobrooks had reached a bipartisan agreement in principle on yield that both sides had described as nearly final.

CLARITY Act Stablecoin Yield Fight Enters Aggressive New Phase

As crypto.news reported, the North Carolina Bankers Association’s campaign targeted Tillis specifically because he represents the state where many of the most exposed community banks are headquartered, and because he was the lead Republican negotiator on the stablecoin yield language. The outreach did not stop at Tillis. According to sources cited by Disruption Banking, banking trade associations have since broadened the campaign to target other members of the Senate Banking Committee beyond the two lead negotiators, a move that crypto industry insiders describe as an attempt to reopen a deal the banks already lost in the closed-door negotiating room. White House Crypto Council executive director Patrick Witt responded by writing on X that the banks are “further lobbying out of greed or ignorance” and warning that the CLARITY Act must not be held hostage by yield concerns the administration’s own data has already refuted.

The Numbers Behind the Banks’ Argument and Why the White House Rejected Them

The banking industry’s core claim is that permitting stablecoin yield could trigger up to $6.6 trillion in deposit flight from the traditional banking system, a figure that has shaped the conversation in Senate Banking Committee meetings since January. The White House Council of Economic Advisers directly challenged that figure with a 21-page analysis finding that banning stablecoin yield would increase bank lending by just $2.1 billion, approximately 0.02% of total US loans, while imposing an $800 million net welfare cost on consumers. As crypto.news tracked, the Tillis-Alsobrooks compromise that banks are now trying to unwind drew a firm line: passive yield on stablecoin balances is banned, while activity-based rewards tied to payments, transfers, and platform use remain permitted. The American Bankers Association has argued that even this restricted version gives stablecoins a structural advantage over bank deposits, a position the White House report explicitly rejected.

What the Bank Campaign Means for the CLARITY Act Timeline

The aggressive lobbying has directly pushed the Senate Banking Committee markup from April into May at minimum, compressing an already narrow legislative window before the Memorial Day recess on May 21. As crypto.news documented, the bill faces five sequential hurdles after any markup: a 60-vote Senate floor threshold, reconciliation between the Agriculture and Banking Committee versions, reconciliation with the House-passed text from July 2025, and a presidential signature. Senator Bernie Moreno has warned that if the bill does not reach the Senate floor by May, it may not advance before the 2026 midterm election cycle closes the window entirely. As crypto.news noted, more than 120 organizations sent an April 23 letter to the Banking Committee demanding an immediate markup, warning that delays are pushing investment, jobs, and technological development offshore.

Senator Tillis has floated hosting an in-person crypto and banking meeting to resolve remaining issues, a step he acknowledged would add time but said is necessary because “there are still issues to negotiate.”

Key Highlights

• Alphabet shares gain ground following confirmation of $40B Anthropic partnership
• Multi-phase investment structure ties funding to performance benchmarks
• Massive computing power commitment positions Google Cloud for AI dominance
• Partnership intensifies competition in enterprise AI and developer tools
• Custom chip strategy challenges Nvidia’s market leadership

Shares of Alphabet (GOOG) climbed following disclosure of a substantial artificial intelligence partnership centered on infrastructure growth. The stock reached $340.97, posting a 0.95% gain during the trading session. Investor sentiment strengthened as the tech giant reinforced its commitment to next-generation computing and AI-powered cloud platforms.

Alphabet Inc., GOOG

Multi-Billion Dollar Commitment Transforms AI Capabilities

Alphabet has significantly expanded its financial backing of Anthropic through a milestone-based investment framework. An initial $10 billion infusion will be followed by potential additional funding of $30 billion, contingent upon achieving specific operational objectives. This approach ties capital allocation directly to demonstrable progress in artificial intelligence development.

The arrangement solidifies Google Cloud’s position as a critical infrastructure backbone for cutting-edge AI applications. Under the terms, the company pledges to deliver 5 gigawatts of computational capacity spanning five years. This substantial infrastructure promise underscores a strategic bet on cloud-hosted AI workload dominance.

The collaboration also advances Google’s proprietary chip development efforts through expanded tensor processing unit deployment. These specialized processors represent a direct challenge to Nvidia’s dominance in AI hardware. By promoting its custom silicon, Google aims to establish a competitive, scalable computing alternative for machine learning applications.

Investment Wave Reflects Surging Enterprise AI Adoption

Anthropic has emerged as a magnet for major capital inflows as artificial intelligence systems gain traction in corporate environments. Beyond this Google commitment, the AI startup recently obtained $5 billion from Amazon, with provisions for additional funding. This investment pattern demonstrates robust market confidence in the commercial viability of generative AI technologies.

The company currently maintains a $350 billion valuation, consistent with its earlier February financing round. Industry speculation suggests future valuations could approach $800 billion as competitive dynamics intensify. Such dramatic valuation growth underscores the fierce rivalry among premier AI innovators.

Anthropic’s technology portfolio generates substantial infrastructure requirements across development organizations. Its Claude Code platform facilitates large-scale automated software engineering. Meanwhile, the Cowork agent broadens accessibility by enabling non-technical users to leverage AI capabilities, accelerating enterprise adoption.

Complex Dynamics Define Google-Anthropic Relationship

The alliance between Google and Anthropic represents a unique blend of cooperation and rivalry in artificial intelligence advancement. Both organizations compete for enterprise market share through sophisticated models and robust infrastructure offerings. This coexistence of partnership and competition characterizes the contemporary AI marketplace.

Internal concerns persist regarding market position in AI-enhanced development platforms. Anthropic has captured significant developer mindshare, intensifying competitive urgency. In response, Google continues expanding investments to preserve its standing in this critical segment.

The initiative builds upon existing collaborations featuring Broadcom and cloud infrastructure enhancement projects. These alliances integrate networking architecture, computational resources, and software platforms into a cohesive technological ecosystem. Through these efforts, Alphabet fortifies its comprehensive strategy spanning AI hardware and cloud services.

Founded by Dario Amodei in 2021, Anthropic maintains aggressive expansion despite operational complexities. The company preserves strong Google connections while pursuing overlapping market objectives. Nevertheless, regulatory oversight and defense-sector considerations remain persistent elements of its strategic risk landscape.

This investment highlights a fundamental industry transition toward infrastructure-centric AI development. Major technology corporations increasingly merge financial backing with computational resource provision to establish market influence. This emerging framework continues reconfiguring competitive dynamics across cloud computing, semiconductor manufacturing, and artificial intelligence platforms.

 

Bitcoin (BTC) stayed glued to $78,000 on Friday with markets “awaiting clarity” from the US-Iran war.

Key points:

• Bitcoin stalls in its bid to recapture $80,000, as US stocks tread water.
• Strong earnings are needed to sustain the equities push, says analysis.
• BTC price support is at risk of giving way next.

Bitcoin joins risk assets “chopping sideways”

Data from TradingView tracked flat BTC price action into the week’s last Wall Street trading session. 

BTC/USD one-hour chart. Source: Cointelegraph/TradingView

Amid a lack of fresh geopolitical cues, risk-asset catalysts presented a mixed picture, leading to sideways movements for US stocks. WTI crude oil, after nearing a rematch with the $100 mark, cooled to $95.

CFDs on WTI crude oil one-hour chart. Source: Cointelegraph/TradingView

“$BTC & Stocks started the week off strong as metals have sold off. But as $OIL has been starting to move again the past few days, risk assets have stalled and are now chopping sideways,” trader Daan Crypto Trades responded in a post on X. 

“Market is eagerly awaiting clarity from the conflict in the middle east. The longer it drags on and oil keeps moving higher, the more pressure will be put on these.”

Macro asset price comparison. Source: Daan Crypto Trades/X

The day prior, trading resource Mosaic Asset Company said that positive earnings figures would be essential to sustain continued upside for stocks, with the S&P 500 already hitting new record highs.

“With the first quarter reporting season about to pick up, it will be crucial to monitor forward earnings estimates for any changes in trend since the start of the year,” it wrote in its latest analysis.

S&P 500 one-hour chart. Source: Cointelegraph/TradingView

Analyst “surprised” that BTC price support holding

Focusing on BTC/USD, trading resource Material Indicators hinted at early signs of a deeper retracement next.

Related: Bitcoin price set for best gains since Q4 2024 with $77.5K monthly close

“Bid liquidity at $76.5k already rugged, as predicted yesterday, and LTF order flow is trending down,” it wrote on X, referring to data from one of its proprietary trading tools.

Material Indicators added that it was “surprised” that bid liquidity below spot price had not been pulled.

BTC/USDT order-book liquidity data with whale orders. Source: Material Indicators/X

Trading account JDK Analysis referenced a “news-driven pump” as further evidence that the low-time frame rally was overextended.

“The profile shows $BTC at the upper value extreme of the past two days,” an X thread read, analyzing exchange order-book data.

BTC/USDT order-book data (Bybit). Source: JDK Analysis/X

This article is produced in accordance with Cointelegraph’s Editorial Policy and is intended for informational purposes only. It does not constitute investment advice or recommendations. All investments and trades carry risk; readers are encouraged to conduct independent research.