The SEC Reg Crypto proposal is heading to an Aug. 14, 2026, open meeting, where the U.S. Securities and Exchange Commission will consider whether to issue proposed rules creating a tailored offering regime for certain investment contracts involving crypto assets. The meeting is scheduled for 10 a.m. ET. If approved, the proposed release would begin the formal public-comment process once published.

Sec Schedules Regulation Crypto Assets for Aug 14

The SEC’s Aug. 10 Sunshine Act notice confirms that the Commission will hold an open meeting on Friday, Aug. 14, at 10 a.m. ET. The meeting will take place at the SEC’s headquarters in Washington, D.C., and will also be available through the agency’s webcast.

The official agenda identifies the matter as “Regulation Crypto Assets.” The Commission will consider whether to issue a release proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets.

The initiative is commonly referred to as “Reg Crypto,” while the SEC’s official agenda uses the title “Regulation Crypto Assets.” The matter falls under the SEC’s Division of Corporation Finance. The agency lists Jim Moloney, Sebastian Gomez Abero, Valian Afshar, Patrick Faller, John Fieldsend and Irene Paik as staff members for the agenda item.

The SEC’s notice does not announce a final rule. It states that the Commission will consider whether to issue a proposal. If approved and issued, the proposal would move into the public-comment and rulemaking process.

The meeting notice was dated Aug. 10, with the open meeting scheduled four days later. The SEC currently has three sitting commissioners, all Republicans. Their votes will determine whether the SEC issues the proposal for public comment.

Reg Crypto Could Create a Pathway for Crypto Fundraising

The proposed framework could address how certain crypto projects raise capital under a tailored offering regime. The framework could give eligible crypto firms a pathway to raise capital for projects without immediately triggering the SEC’s full registration requirements.

That would potentially give qualifying projects a defined route for fundraising in the United States while operating within a framework established by the agency. For crypto founders and fundraising platforms, the potential change could address uncertainty around how certain digital-asset projects structure offerings in the U.S. market.

Regulatory uncertainty has also encouraged some crypto offerings to seek jurisdictions outside the United States. A tailored U.S. framework could provide qualifying projects with another option for raising capital domestically. The precise scope of the fundraising pathway remains unknown because the SEC’s Aug. 10 notice does not specify registration exemptions, eligibility requirements or other detailed conditions.

The framework would not necessarily create a blanket exemption for token issuers or crypto companies. Its impact would depend on the eligibility requirements, disclosures, investor protections and continuing obligations included in the proposed release.

A Potential Exit Mechanism Could Address Continuing SEC Oversight

The framework could also address what happens after a crypto project is no longer actively managed by its development team. A potential mechanism could allow certain projects to seek relief from continuing SEC oversight once their teams are no longer involved in hands-on management.

The precise legal effect and eligibility conditions remain unknown. That would not mean a project automatically leaves the SEC’s jurisdiction simply because its team stops managing it day to day.

Any relief would depend on the legal mechanism and conditions established in the proposed framework, if such a mechanism is included. The SEC’s official notice does not confirm an exit mechanism.

It only states that the Commission will consider proposed rules creating a tailored offering regime for certain investment contracts involving crypto assets. The proposed release will therefore be critical for determining whether an exit pathway is included, which projects could qualify and what conditions would apply.

Aug 14 Would Begin a Longer Rulemaking Process

The Aug. 14 meeting would be the start of a longer process rather than the completion of a new crypto rule. If the Commission approves the proposal and it is published, the public would have an opportunity to submit comments.

The comment period is expected to last roughly two to three months, after which the SEC could review the responses and revise the proposal before considering a final rule. A final rule would generally provide a more formal and durable framework than informal staff statements or speeches, although it could still be challenged, amended or replaced.

The proposed rule would not immediately create binding requirements for crypto businesses. Instead, the proposal would establish the SEC’s intended regulatory approach and give market participants an opportunity to respond before the agency considers whether to adopt a final rule.

The eligibility requirements, disclosure obligations, investor protections, continuing requirements and any potential exit mechanism would therefore need to be assessed from the proposed release itself.

Clarity Act Consideration Moves Into September

The SEC’s planned action comes as Senate consideration of the Digital Asset Market Clarity Act has moved into September after lawmakers did not complete the relevant procedural step before the August recess.

Senate leaders have scheduled a Sept. 15 cloture vote on the motion to proceed to the legislation. That vote would determine whether the Senate can advance to consideration of the bill; it would not constitute final passage.

The CLARITY Act is intended to provide a broader legal foundation for crypto market rules in the United States. The delay leaves the SEC able to pursue rules within its existing authority while Congress considers whether to establish a broader statutory framework.

SEC Chairman Paul Atkins has said the agency can address many crypto market-structure issues through its existing authority. He has also indicated that congressional legislation would provide clearer, longer-term direction than SEC rulemaking alone.

The two regulatory tracks therefore remain important for crypto businesses. A final SEC rule could establish requirements within the agency’s authority, while legislation could provide broader statutory rules governing the U.S. digital-asset market.

SEC’s Crypto Work Extends Beyond the Aug 14 Proposal

The Regulation Crypto Assets proposal is part of the SEC’s wider work on digital-asset regulation. The SEC has issued an interpretation clarifying the application of federal securities laws to certain crypto assets and transactions.

That interpretation includes a taxonomy covering categories such as digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The proposed offering regime would address another part of the regulatory framework by establishing rules for certain investment contracts involving crypto assets.

The distinction between an interpretation and a final rule is significant. The SEC’s interpretation explains how existing federal securities laws apply to specified crypto assets and transactions, while a final rule adopted through rulemaking would establish regulatory requirements within the agency’s authority.

The Aug. 14 meeting therefore represents the beginning of a proposed rulemaking process rather than the completion of the SEC’s crypto regulatory framework.

What Crypto Businesses Should Watch Next

The immediate question is whether the Commission votes to issue the proposed release. If it does, the document will provide the first detailed view of how the SEC intends to structure the tailored offering regime.

Crypto businesses will need to examine which investment contracts qualify, what conditions apply, what disclosures are required and what investor protections are included. The potential fundraising pathway will also require close attention.

Qualifying projects could potentially receive a route to raise capital without immediately triggering full SEC registration requirements, but the actual proposal will determine the scope and conditions of that route. The potential exit mechanism will require similar scrutiny.

For now, the confirmed development is that the SEC will meet on Aug. 14, 2026, to consider whether to issue proposed rules creating a tailored offering regime for certain investment contracts involving crypto assets.

If approved, the proposed release will determine how the fundraising pathway, eligibility requirements, investor protections, continuing obligations and any potential exit mechanism are structured. Until that document is issued, those details should not be treated as final SEC rules.

Node operators who miss the August 11 cutoff will be disconnected from Pi’s mainnet. With 421,000 nodes, a token trading at $0.08, and Binance still refusing to list, the upgrade is a stress test for a project that claims 60 million users but struggles to prove they matter.

Tomorrow morning, more than 421,000 Pi Network node operators face a choice that sounds routine but carries real consequences. Protocol 26, the ninth mandatory upgrade in recent months, must be installed by August 11 or the node loses its connection to Pi’s mainnet. The update itself takes less than five minutes. The question it raises takes longer to answer: what exactly are these nodes securing, and does it matter?

Pi Network occupies a unique position in crypto. It claims more than 60 million registered users, more than 18 million of whom have completed KYC verification. It has more active nodes than most proof of stake networks. It has been running an open mainnet since February 2025. And yet the token trades at eight cents, the largest exchanges will not list it, and the project’s first year on open mainnet produced more questions than answers.

Protocol 26 is worth examining not because the upgrade itself is dramatic, but because it forces a reckoning with the gap between Pi’s infrastructure ambitions and its market reality.

What Protocol 26 actually changes

The upgrade introduces improvements to contract security, state management, and cryptographic capabilities within Pi’s blockchain. The Core Team has described it as part of a sequential upgrade path, with Protocol 27 designated as the final major protocol change before what the team calls full network maturity.

In practical terms, Protocol 26 tightens the rules for how smart contracts interact with the network’s state layer and adds cryptographic primitives that will be required for Protocol 27’s feature set. The internal data migration involved is modest. Most node operators report less than five minutes of downtime during the process.

The mandatory nature of the upgrade is standard for Pi’s governance model. Unlike Bitcoin, where soft forks are backward compatible and nodes can choose whether to adopt new rules, Pi’s upgrade path is centrally coordinated. The Core Team sets deadlines, and nodes that miss them are disconnected. This is closer to how Solana or Aptos manage protocol upgrades than how Bitcoin or Ethereum operate.

This distinction matters. Pi’s consensus mechanism is derived from the Stellar Consensus Protocol, which relies on trust relationships between validators rather than proof of work or economic staking. The network’s 421,000 nodes participate in transaction validation through a trust graph managed by the Core Team’s selection of supernodes. The question of how decentralized this architecture actually is has been a persistent source of scrutiny from external observers.

The exchange listing problem

The most visible failure of Pi’s first 18 months on open mainnet is its absence from the two largest crypto exchanges in the world.

Binance held a community vote in February 2025 in which 86.8% of participants voted in favor of listing PI. The exchange did not act on the result. No public explanation was offered at the time, but reporting from multiple outlets has since identified three concerns: code transparency, the absence of a comprehensive third party security audit, and questions about the degree of centralization in Pi’s validator infrastructure.

Coinbase has been silent. No public statement regarding a PI listing has been made. The exchange’s general listing standards require projects to meet criteria around security, regulatory compliance, and technical architecture that Pi has not publicly shown it satisfies.

The listings that have materialized tell their own story. Kraken listed PI for spot trading in March 2026, making it the first US regulated exchange to do so. OKX opened US access in May. Bitget, MEXC, and several smaller venues also trade PI. But these exchanges collectively represent a fraction of the liquidity that Binance and Coinbase provide. Without the two largest venues, PI’s trading volume remains thin enough that relatively small sell orders can move the price by several percentage points.

The tokenomics pressure

Pi’s price trajectory since open mainnet launch has been a study in supply overwhelming demand. The token reached an all time high of $2.98 on February 26, 2025, the day it became freely tradeable. It now trades at approximately $0.08, a decline of more than 95%.

The supply schedule is the primary driver. Pi has a maximum supply of 100 billion tokens, of which roughly 9% is currently circulating. The remaining tokens unlock over time as users complete KYC verification, claim mining rewards, and exit lock up periods. Approximately 775 million additional PI are expected to unlock by December 2026 as three year lock up periods expire.

This creates a structural problem. Even if demand for PI increases, the incoming supply acts as a persistent headwind. Every month, tens of millions of new tokens enter circulation from users who mined them for free on their phones and have no cost basis. The rational behavior for these holders is to sell at any price above zero, because every token sold is pure profit.

The comparison to traditional token launches is instructive. Most crypto projects that distribute tokens through airdrops or mining programs experience significant sell pressure in the first year. Pi’s distinction is the scale. With 60 million registered users and a supply schedule that stretches over years, the sell pressure is not a spike that clears. It is a constant flow.

The RoboPay question

On August 4, 2026, the Fabric Foundation announced that Pi Network had joined RoboPay as a payment partner. RoboPay is a payment layer designed to let AI agents discover, hire, and pay robots for physical services through on chain transactions. The announcement described Pi’s PiRC2 smart contracts enabling recurring and automated settlements for robotic services.

The announcement deserves careful scrutiny on two fronts.

First, Pi’s Core Team has not confirmed the partnership. The claim comes from Fabric Foundation, not from Pi Network. Community reaction has been mixed, with some members treating it as a significant utility milestone and others noting the absence of official verification. Until the Core Team confirms, the partnership should be treated as unverified.

Second, even if confirmed, the services described are not live. RoboPay is infrastructure for a future in which autonomous robots provide services and receive payment through blockchain transactions. That future may arrive, but it has not arrived yet. A payment integration with a platform that has no live commercial users does not generate demand for PI tokens in the present.

This pattern, announcements of future utility that do not translate into current demand, has characterized much of Pi’s ecosystem development. The project has announced partnerships and integrations at a steady pace, but the gap between announcement and measurable economic activity remains wide.

The 421,000 node question

Pi’s node count is impressive in isolation. More than 421,000 active nodes place it among the largest validator networks in crypto by raw count. The network has processed more than 526 million verification tasks. Node operators run Pi Node software on desktop computers, contributing computational resources to the network’s consensus process.

The question is what these nodes are actually doing. Pi’s consensus mechanism, derived from the Stellar Consensus Protocol, does not require the computational intensity of proof of work or the economic staking of proof of stake. Nodes participate in a trust graph where supernodes, selected by the Core Team, anchor the consensus process. Regular nodes validate transactions within the trust relationships defined by these supernodes.

Critics argue this architecture is closer to a permissioned network than a truly decentralized one. BeInCrypto reported in early 2026 that concerns over supernode selection transparency had grown within the community, with node operators questioning how supernodes are chosen and whether the process concentrates too much authority in the Core Team.

Defenders counter that 421,000 nodes represent genuine geographic distribution and that the trust graph model is a deliberate design choice, not a centralization compromise. The Stellar Consensus Protocol, they note, was designed specifically to avoid the energy costs of proof of work while maintaining Byzantine fault tolerance.

Both arguments have merit. The relevant question for Protocol 26 is whether the upgrade deadline will reveal how many of those 421,000 nodes are actively maintained versus abandoned. If a significant fraction miss the deadline and are disconnected, the effective validator set shrinks, and the network’s claim to broad decentralization weakens.

What Protocol 27 needs to deliver

The Core Team has positioned Protocol 27 as the final major upgrade. It is expected to include expanded smart contract capabilities, DeFi infrastructure, DEX liquidity mechanisms, and the technical foundations for real world merchant payments.

The stakes for Protocol 27 are existential. Pi’s value proposition has always been future oriented: mine now, use later. The network launched with a mobile mining app that required no hardware investment, no electricity cost, and no technical knowledge. Tens of millions of people participated because the implied promise was that PI would eventually become valuable once the network matured and real use cases emerged.

Protocol 26 is the penultimate step. If Protocol 27 ships and the promised capabilities fail to generate meaningful transaction volume, exchange listings, or developer activity, the project will have exhausted its technical roadmap without resolving the fundamental question of whether anyone needs to use the Pi blockchain for anything that existing networks do not already provide.

The case for Pi

Dismissing Pi Network entirely requires ignoring several facts that competitors cannot replicate. No other crypto project has onboarded 60 million users. No other project has 18 million KYC verified participants. No other project has 421,000 nodes running validation software. These are real numbers representing real human participation, even if the economic value generated by that participation remains close to zero.

The bull case rests on a conversion thesis: if even a small fraction of Pi’s user base begins transacting on chain in meaningful ways, the network effects could be significant. A 60 million user network that achieves 1% active daily usage would have 600,000 daily active users, more than most DeFi protocols.

The question is whether Protocol 26 and Protocol 27 can provide the infrastructure necessary for that conversion. The current ecosystem has not produced a breakout application. The token’s price decline has eroded confidence among early adopters. And the exchange listing gap means that new capital cannot easily enter the PI market.

What would change this analysis

A confirmed Binance listing would transform Pi’s outlook overnight. The liquidity, visibility, and credibility that Binance provides would address the most common objection institutional and retail investors cite. Watch for any change in Binance’s public posture or new listing evaluation announcements.

A sharp reduction in token unlock volume, either through extended lock up incentives or a protocol level change to the emission schedule, would reduce sell pressure and allow demand to influence price. The current unlock schedule makes sustained price appreciation arithmetically difficult.

A breakout dApp that generates real transaction volume on the Pi blockchain would validate the network’s technical capabilities and provide a concrete answer to the question of what Pi is for. No such application exists today.

What to watch

Node connectivity after August 11. The number of nodes that successfully upgrade versus those that are disconnected will reveal the health of Pi’s validator community. A drop below 350,000 active nodes would signal significant operator attrition.

Protocol 27 timeline. The Core Team has not announced a firm date. Any delay beyond Q4 2026 extends the period of technical uncertainty and weakens the “final upgrade” narrative.

Binance listing signals. Monitor Binance’s listing evaluation page, community vote results, and any public statements from Binance leadership regarding PI. The absence of signals is itself informative.

Monthly token unlock volumes. Track the pace of new PI entering circulation against trading volume. If unlocks consistently exceed daily volume, sell pressure will continue to suppress price regardless of other developments.

DApp transaction counts. The Pi browser includes access to Pi ecosystem applications. Weekly active user counts and on chain transaction volumes for these applications are the most direct measure of whether the network is generating real utility.

Disclaimer: This article is for informational and educational purposes only. It does not constitute financial, investment, or legal advice. Cryptocurrency markets are volatile and carry significant risk. Always conduct your own research before making investment decisions. Published August 10, 2026.

BTCPay Server supporters have backed a recovery bounty equal to 10% of funds retrieved from a recent Lightning wallet exploit, with the reward capped at 3 BTC if all stolen assets are recovered.

The BTCPay Server project said on Monday that the bounty is part of its response to a critical security flaw that exposed LND administrator credentials on vulnerable installations, days after users were told to immediately upgrade to version 2.4.2.

The open-source Bitcoin payment processor has not disclosed how much cryptocurrency was stolen or how many servers were compromised. However, several affected users, including Foundation and Citadel21, have reported that funds held in their Lightning nodes were drained.

BTCPay said the vulnerability affected all releases before version 2.4.2, including release candidate versions of 2.4.2. The flaw allowed an attacker to obtain LND admin macaroon credentials from exposed BTCPay instances and then access wallets connected to the affected Lightning nodes.

A macaroon works as an authentication credential for a Lightning node, with an administrator macaroon providing extensive permissions over the associated wallet. Access to those credentials can therefore allow an unauthorized party to control funds held through the affected LND setup.

BTCPay Server exploit was fixed in version 2.4.2

Following the discovery, BTCPay released the final version of 2.4.2 with a fix for the vulnerability and urged operators running older versions to update their servers.

The project said the security issue was specific to LND credentials and did not expose users running other Lightning implementations through the same attack route. Operators who do not use Lightning were also not affected by the LND credential issue, although BTCPay recommended that all users install the latest release.

BTCPay’s onchain wallets were not compromised through the vulnerability, including onchain hot wallets maintained by users of the software, according to the project.

The distinction limits the known attack path to connected LND wallets rather than the full range of Bitcoin funds that can be managed through a BTCPay installation.

Although BTCPay has yet to release figures for the losses, reports from individual users have confirmed that the exploit resulted in stolen funds. The project is preparing a full postmortem that is expected to provide more information about the vulnerability and the response.

BTCPay has also started introducing stronger code-scanning and review procedures with assistance from several external organizations.

The response follows a difficult year for crypto security. In April,crypto.news reported that CertiK had recorded more than $600 million in crypto losses during 2026 at the time, while the security firm warned that AI-assisted attacks and weaknesses in infrastructure were becoming important risks for projects.

Researchers receive 0.42 BTC for finding the flaw

Alongside the recovery bounty, the BTCPay Server Foundation is paying rewards to the researchers who identified the vulnerability before it was publicly disclosed.

The foundation is donating 0.21 BTC each to Sparrow Wallet developer Craig Raw and the Bitcoin Red Team fund. Raw discovered the security issue and privately reported it to BTCPay, allowing developers to prepare a fix before details of the flaw became public.

Raw later said he had also been affected by the exploit.

Bitcoin Red Team operates as a volunteer security research group whose members include Rob Hamilton, Calle and Evan Kaloudis. The group works on finding and reporting vulnerabilities affecting Bitcoin-related software.

BTCPay’s decision to fund both researchers comes alongside the separate recovery bounty backed by project supporters. Under the proposed terms, 10% of successfully recovered funds can be paid as a bounty, while a complete recovery would carry a maximum reward of 3 BTC.

Recovery incentives have also surfaced after other crypto exploits this year. In July, crypto.news examined efforts to recover roughly 16 million ADA taken from 374 Cardano wallets in a late-June exploit. EMURGO outlined a process to return affected assets while an independent forensic team conducted a separate investigation into the incident.

AI may have helped uncover the BTCPay Server exploit

As part of its initial assessment, BTCPay raised the possibility that artificial intelligence tools could have played a role in finding the vulnerable code.

The project said improving AI models have reduced the time and cost required to inspect large software repositories for weaknesses, changing the capabilities available to both attackers and security researchers.

Bitcoin software presents an attractive target because exploitable weaknesses can provide direct access to assets, BTCPay said, adding that other areas of the software industry could eventually face similar problems as AI-based code analysis becomes more capable.

Concerns over AI-assisted attacks had already surfaced elsewhere in the crypto sector. CertiK reported in June that crypto hacks and exploits caused $68.3 million in losses during May, down nearly 90% from roughly $650 million in April, but the firm also recorded an increase in AI-assisted malware targeting code repositories and coding tools, as previously covered by crypto.news.

A July analysis of AI security also examined how increasingly capable models can identify and exploit software vulnerabilities, with the technology arriving during a year already dominated by large crypto security incidents.

The BTCPay incident differs from attacks based primarily on social engineering or compromised signing devices because the entry point was a software vulnerability that exposed sensitive LND authentication credentials.

Coldcard exploit raised similar AI concerns

The BTCPay attack has followed another major Bitcoin security incident involving Coldcard hardware wallets, where the suspected use of AI to inspect older code was also raised after funds were stolen.

At least $116 million in losses have been confirmed from the Coldcard exploit so far. Coinkite, the company behind Coldcard, said it considered it likely that someone had used AI to examine older publicly available firmware and identify the weakness.

The two incidents have put code review under increased attention at a time when attackers have already moved beyond conventional smart contract vulnerabilities.

In April, crypto.news reported on more than $17 billion lost across 518 documented crypto hacks and exploits over the previous decade, citing DefiLlama data. The report found that private key leaks, credential theft, phishing and attacks against wallets and infrastructure had become major sources of losses alongside flaws in smart contracts.

Chainalysis has separately estimated that attackers stole $36.7 million from unverified, closed-source smart contracts during the first six months of 2026 by decompiling contract bytecode. The blockchain analytics firm assessed that AI was very likely involved in this activity.

For BTCPay users, the immediate remediation remains the official 2.4.2 release. The project has said it will publish a more detailed postmortem on the exploit while its new code-scanning and review procedures are being developed with external organizations.

Easing concerns over the situation in the Strait of Hormuz provided support for risk-sensitive assets. On 8 August, the Iranian side reported progress in talks with Oman over a possible new route through the strait, although the implementation of any agreement remains dependent on additional conditions. Reduced concerns over potential disruptions to energy supplies helped improve investor sentiment, although uncertainty surrounding the region continues to create the potential for increased volatility.

Technical Analysis of Ethereum

The ETH/USD technical picture shows that after peaking around $1,975 in late July, the price formed a pattern resembling a contracting triangle. The breakout occurred on 10 August, when a large red candle broke below both the triangle’s lower boundary and the lower boundary of the current market profile at $1,894, creating the conditions for a downside move out of the pattern. As a result, the price moved into the zone between the lower profile boundary and the green support level at $1,854. Continued selling pressure could pave the way for a test of this area.

If the trend reverses and the price returns to the profile range, market participants should focus on the area comprising the POC at $1,915 and the upper profile boundary at $1,925. Above these levels lies the red resistance level at $1,942. It is also worth noting that the breakout was accompanied by an increase in volume, indicating stronger selling activity at that point. Following the decline, the RSI + MAs indicator shows readings of 32, 52 and 53. The oscillator has moved out of the neutral zone, while the moving averages remain some distance from crossing below its lower boundary.

Summary

Geopolitical developments surrounding the Strait of Hormuz remain one of the key factors influencing sentiment across the cryptocurrency market, while the breakout from the contracting triangle on 10 August pointed to increased selling pressure in the short term. Ethereum’s further performance will depend on how the market responds to the latest news flow.

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Ravencoin disclosed on Aug. 11 that a critical consensus vulnerability had been exploited since Aug. 7, allowing vulnerable nodes to accept invalid blocks beginning at height 4,487,776. 

The project warned in its notice that a recovery chain being mined by 2Miners and RavenMiner could trigger a deep reorganization spanning “approximately three days” if it becomes dominant.

The alert followed an emergency software release from 2Miners on Aug. 10. The pool said the flaw sits in KAWPOW block header validation and allows an attacker to bypass the normal memory intensive mining process. Ravencoin advised exchanges to halt RVN deposits and withdrawals and told users to treat confirmations after block 4,487,775 as potentially reversible.

Ravencoin bug allowed cheap invalid blocks

2Miners said the KAWPOW header contains an nHeight field that was not checked against a block’s actual position in the chain. By manipulating that value, an attacker could reach a validation path that skipped full proof of work verification and accepted a supplied mix hash without confirming genuine ProgPoW work.

The emergency release said blocks created through the flaw carried no genuine ProgPoW work and were “orders of magnitude cheaper” to produce than honest blocks at the same difficulty. It also documented two effects seen on mainnet: affected nodes could fail after restarting, while nodes attempting to synchronize could encounter broken header sequences and fail to catch up.

2Miners said exploitation continued from Aug. 7 through its Aug. 10 release. Between heights 4,489,527 and 4,491,615, it identified 96 affected blocks among 2,089 examined. A separate sample covering the period before Aug. 7 found no affected blocks, supporting the identified starting point.

2Miners ships emergency patch as recovery continues

2Miners released version 4.6.1.1-hf1, which rejects blocks whose declared header height differs from their actual chain position starting at 4,487,776. The patch also adds a checkpoint at 4,487,775 and rebuilds chain state when damaged index data prevents a node from continuing normally.

The pool said node operators, exchanges, miners and explorers should upgrade. Its release warns that the first restart can take several hours because the software replays about 4.49 million blocks and 28 million transactions while rebuilding chain state. Operators running several nodes were advised to upgrade them individually.

Ravencoin’s official GitHub notes separately said there was not yet a core version patching both the KAWPOW problem and a different asset transfer quantity overflow bug. Maintainer Hans Schmidt recommended using the 2Miners code for the mining problem until a combined patch becomes available.

Exchanges halt transfers as RVN falls 19%

Upbit suspended Ravencoin deposits and withdrawals on Aug. 10, citing a network issue, before the project’s broader warning. Its notice leaves trading available while transfers remain halted. Bitget also suspended RVN deposits and withdrawals for wallet maintenance beginning Aug. 10.

CoinGecko data showed RVN trading near $0.00288 on Tuesday, down about 19.1% over 24 hours. Its market capitalization had fallen to roughly $47.3 million while 24 hour trading volume approached $11 million.

Ravencoin has experienced a different protocol vulnerability before. In 2020, attackers exploited a flaw to create about 315 million unauthorized RVN, as crypto.news reported in earlier Ravencoin exploit coverage. The earlier incident involved excess token issuance, while the current vulnerability concerns proof of work validation and competing chain histories.

In related block reorganization coverage, an 18 block Monero reorg in 2025 invalidated previously confirmed transactions. The episode illustrates why exchanges often become cautious about transaction finality when proof of work networks develop competing histories.

What happens next for the Ravencoin chain

Ravencoin said 2Miners and RavenMiner controlled a majority of network hash rate and were mining from the last unaffected block while excluding the exploited branch. The project cautioned that if their chain becomes dominant, transactions confirmed after 4,487,775 may disappear from the accepted history. Some could return to mempools and be mined again, but Ravencoin said this is “not guaranteed.”

The next milestones are a stable dominant chain, wider adoption of patched software and a combined upstream Ravencoin release. Until then, the project’s guidance remains for exchanges to suspend transfers and for users not to rely on recent confirmations. Ravencoin also stressed that its warning should not be interpreted as support for a rollback or any particular recovery plan.

The SEC Reg Crypto proposal is heading to an Aug. 14, 2026, open meeting, where the U.S. Securities and Exchange Commission will consider whether to issue proposed rules creating a tailored offering regime for certain investment contracts involving crypto assets. The meeting is scheduled for 10 a.m. ET. If approved, the proposed release would begin the formal public-comment process once published.

SEC Schedules Regulation Crypto Assets for Aug 14

The SEC’s Aug. 10 Sunshine Act notice confirms that the Commission will hold an open meeting on Friday, Aug. 14, at 10 a.m. ET. The meeting will take place at the SEC’s headquarters in Washington, D.C., and will also be available through the agency’s webcast.

The official agenda identifies the matter as “Regulation Crypto Assets.” The Commission will consider whether to issue a release proposing new rules to create a tailored offering regime for certain investment contracts involving crypto assets.

The initiative is commonly referred to as “Reg Crypto,” while the SEC’s official agenda uses the title “Regulation Crypto Assets.” The matter falls under the SEC’s Division of Corporation Finance. The agency lists Jim Moloney, Sebastian Gomez Abero, Valian Afshar, Patrick Faller, John Fieldsend and Irene Paik as staff members for the agenda item.

The SEC’s notice does not announce a final rule. It states that the Commission will consider whether to issue a proposal. If approved and issued, the proposal would move into the public-comment and rulemaking process.

The meeting notice was dated Aug. 10, with the open meeting scheduled four days later. The SEC currently has three sitting commissioners, all Republicans. Their votes will determine whether the SEC issues the proposal for public comment.

Reg Crypto Could Create a Pathway for Crypto Fundraising

The proposed framework could address how certain crypto projects raise capital under a tailored offering regime. The framework could give eligible crypto firms a pathway to raise capital for projects without immediately triggering the SEC’s full registration requirements.

That would potentially give qualifying projects a defined route for fundraising in the United States while operating within a framework established by the agency. For crypto founders and fundraising platforms, the potential change could address uncertainty around how certain digital-asset projects structure offerings in the U.S. market.

Regulatory uncertainty has also encouraged some crypto offerings to seek jurisdictions outside the United States. A tailored U.S. framework could provide qualifying projects with another option for raising capital domestically. The precise scope of the fundraising pathway remains unknown because the SEC’s Aug. 10 notice does not specify registration exemptions, eligibility requirements or other detailed conditions.

The framework would not necessarily create a blanket exemption for token issuers or crypto companies. Its impact would depend on the eligibility requirements, disclosures, investor protections and continuing obligations included in the proposed release.

A Potential Exit Mechanism Could Address Continuing SEC Oversight

The framework could also address what happens after a crypto project is no longer actively managed by its development team. A potential mechanism could allow certain projects to seek relief from continuing SEC oversight once their teams are no longer involved in hands-on management.

The precise legal effect and eligibility conditions remain unknown. That would not mean a project automatically leaves the SEC’s jurisdiction simply because its team stops managing it day to day.

Any relief would depend on the legal mechanism and conditions established in the proposed framework, if such a mechanism is included. The SEC’s official notice does not confirm an exit mechanism.

It only states that the Commission will consider proposed rules creating a tailored offering regime for certain investment contracts involving crypto assets. The proposed release will therefore be critical for determining whether an exit pathway is included, which projects could qualify and what conditions would apply.

Aug 14 Would Begin a Longer Rulemaking Process

The Aug. 14 meeting would be the start of a longer process rather than the completion of a new crypto rule. If the Commission approves the proposal and it is published, the public would have an opportunity to submit comments.

The comment period is expected to last roughly two to three months, after which the SEC could review the responses and revise the proposal before considering a final rule. A final rule would generally provide a more formal and durable framework than informal staff statements or speeches, although it could still be challenged, amended or replaced.

The proposed rule would not immediately create binding requirements for crypto businesses. Instead, the proposal would establish the SEC’s intended regulatory approach and give market participants an opportunity to respond before the agency considers whether to adopt a final rule.

The eligibility requirements, disclosure obligations, investor protections, continuing requirements and any potential exit mechanism would therefore need to be assessed from the proposed release itself.

Clarity Act Consideration Moves Into September

The SEC’s planned action comes as Senate consideration of the Digital Asset Market Clarity Act has moved into September after lawmakers did not complete the relevant procedural step before the August recess.

Senate leaders have scheduled a Sept. 15 cloture vote on the motion to proceed to the legislation. That vote would determine whether the Senate can advance to consideration of the bill. It would not constitute final passage.

The CLARITY Act is intended to provide a broader legal foundation for crypto market rules in the United States. The delay leaves the SEC able to pursue rules within its existing authority while Congress considers whether to establish a broader statutory framework.

SEC Chairman Paul Atkins has said the agency can address many crypto market-structure issues through its existing authority. He has also indicated that congressional legislation would provide clearer, longer-term direction than SEC rulemaking alone.

The two regulatory tracks therefore remain important for crypto businesses. A final SEC rule could establish requirements within the agency’s authority, while legislation could provide broader statutory rules governing the U.S. digital-asset market.

SEC’s Crypto Work Extends Beyond the Aug 14 Proposal

The Regulation Crypto Assets proposal is part of the SEC’s wider work on digital-asset regulation. The SEC has issued an interpretation clarifying the application of federal securities laws to certain crypto assets and transactions.

That interpretation includes a taxonomy covering categories such as digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The proposed offering regime would address another part of the regulatory framework by establishing rules for certain investment contracts involving crypto assets.

The distinction between an interpretation and a final rule is significant. The SEC’s interpretation explains how existing federal securities laws apply to specified crypto assets and transactions, while a final rule adopted through rulemaking would establish regulatory requirements within the agency’s authority.

The Aug. 14 meeting therefore represents the beginning of a proposed rulemaking process rather than the completion of the SEC’s crypto regulatory framework.

What Crypto Businesses Should Watch Next

The immediate question is whether the Commission votes to issue the proposed release. If it does, the document will provide the first detailed view of how the SEC intends to structure the tailored offering regime.

Crypto businesses will need to examine which investment contracts qualify, what conditions apply, what disclosures are required and what investor protections are included. The potential fundraising pathway will also require close attention.

Qualifying projects could potentially receive a route to raise capital without immediately triggering full SEC registration requirements, but the actual proposal will determine the scope and conditions of that route. The potential exit mechanism will require similar scrutiny.

For now, the confirmed development is that the SEC will meet on Aug. 14, 2026, to consider whether to issue proposed rules creating a tailored offering regime for certain investment contracts involving crypto assets.

If approved, the proposed release will determine how the fundraising pathway, eligibility requirements, investor protections, continuing obligations and any potential exit mechanism are structured. Until that document is issued, those details should not be treated as final SEC rules.

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