$292M KelpDAO Hack Exposed as Senate May 14 Crypto Vote Looms — May 10, 2026
KelpDAO Suffers $292M Exploit Through RPC Poisoning Attack
Layerzero disclosed an RPC poisoning incident linked to the $292 million KelpDAO hack, one of the largest DeFi exploits of 2026. The attack vector involved compromising the remote procedure call (RPC) endpoints that KelpDAO relied on for interacting with Ethereum, allowing attackers to manipulate transaction data and drain funds. The disclosure from Layerzero reveals the attack was not a smart contract vulnerability but an infrastructure-level compromise, raising broader concerns about RPC endpoint security across the DeFi ecosystem.
Why it matters: A $292M exploit represents a significant loss and the RPC poisoning vector is a relatively new attack method that many protocols may not be adequately protected against. This could accelerate calls for more robust infrastructure standards in DeFi.
Source: Bitcoin News
US Senate Banking Committee Schedules Landmark Crypto Bill Markup for May 14
The Senate Banking Committee will vote on the long-awaited comprehensive crypto bill on May 14, marking the most significant legislative action on digital assets in US history. The bill has been the subject of intense lobbying, with reports that crypto industry giants have pushed to ease rules on risky assets in the final version. The markup comes after years of regulatory uncertainty and could establish the first comprehensive federal framework for digital assets.
Separately, an attorney analysis suggests the CLARITY Act provisions could bring crypto firms back to the US if passed, reversing the exodus to offshore jurisdictions seen in recent years.
Why it matters: This is the single most important regulatory development of 2026. Passage would provide legal clarity for the entire US crypto industry and could set the template for global regulation.
Sources: Reuters, CNBC, Bitbo, Politico
Lagarde Blocks Euro Stablecoin Push, Warns of ECB Policy Risk
ECB President Christine Lagarde blocked a euro-denominated stablecoin initiative, calling the $300 billion stablecoin market a stability risk for ECB monetary policy. The move signals the ECB is taking an increasingly hardline stance against private stablecoins that could compete with the digital euro or interfere with the central bank's ability to manage monetary conditions. Lagarde's intervention effectively puts euro stablecoin development on ice for the foreseeable future.
Why it matters: The ECB is the most powerful central bank in crypto regulation. Lagarde's veto sets a precedent that could shape stablecoin policy across Europe and influence other G7 central banks considering similar restrictions.
Source: Bitcoin News
IMPORTANT
CME Group Targets June 1 Launch for Bitcoin Volatility Futures
CME Group is targeting a June 1 launch for Bitcoin volatility futures, pending CFTC review. The new product would allow traders to bet on BTC volatility itself rather than just price direction, opening up an entirely new derivatives market. This represents a significant maturation of Bitcoin's institutional infrastructure, as volatility derivatives are a product category typically reserved for the most established financial assets.
Why it matters: Bitcoin volatility futures would give institutions sophisticated hedging tools and signal that Bitcoin has achieved sufficient market maturity for advanced derivative products.
Source: CoinDesk
Swiss National Bank Bitcoin Reserve Campaign Fails
Swiss campaigners have dropped their bid to force the Swiss National Bank (SNB) to hold bitcoin as part of its reserves. The initiative, which had garnered significant attention in pro-Bitcoin circles, failed to gain enough traction to proceed to a referendum. Bloomberg confirmed the campaign's end, though proponents have indicated they may revisit the effort in the future.
Why it matters: While the campaign's failure is a setback for the "bitcoin as a reserve asset" narrative, it demonstrates the growing ambition of Bitcoin advocates to integrate the asset into sovereign monetary systems.
Aave Recovers $71M From Exploited rsETH Funds
DeFi protocol Aave has recovered $71 million in ETH from the exploited rsETH funds, with the return process moving forward. The recovery follows negotiations and on-chain tracing efforts after the initial exploit. While not covering the full extent of losses from various DeFi incidents this year, the $71M recovery represents one of the larger successful fund recovery operations in DeFi history.
Why it matters: Successful fund recoveries are rare in DeFi. This case could establish precedents for how protocols and law enforcement collaborate to trace and reclaim stolen digital assets.
Source: Coinpedia
Morgan Stanley Launches ETrade Crypto Trading at 0.5% Fee
Morgan Stanley has launched crypto trading on its ETrade platform with a 0.5% fee structure, marking one of the most significant traditional finance entries into retail crypto access. The move gives Morgan Stanley's millions of ETrade customers direct access to digital assets through a regulated, household-name brokerage. Meanwhile, Morgan Stanley's MSBT Bitcoin ETF has hit $233 million in assets under management.
Why it matters: When a Wall Street titan like Morgan Stanley opens crypto to its retail base, it normalizes digital asset investing for mainstream America and signals that major banks see crypto as a permanent part of the financial landscape.
Sources: crypto.news, 24/7 Wall St.
POSITIVE
US Bitcoin ETFs Hit Longest Positive Inflow Streak in 9 Months
US spot Bitcoin ETFs have achieved their longest "green" streak in 9 months, with sustained inflows indicating renewed institutional confidence. Bitcoin ETFs pulled in roughly $1 billion in a single week, with BlackRock's IBIT leading the charge. The consistent inflow pattern suggests institutions are using the current price level around $80K as an accumulation zone, with JPMorgan predicting Strategy (formerly MicroStrategy) could purchase $30 billion in Bitcoin this year.
Why it matters: Sustained ETF inflows are the most reliable indicator of institutional demand. A 9-month high streak suggests structural buying pressure that could support prices even amid broader market weakness.
Sources: BeInCrypto, thestreet.com
BNY Mellon Expands Ethereum Custody Services
BNY Mellon, America's oldest bank, has expanded its Ethereum custody services, deepening its commitment to digital asset infrastructure. The expansion comes as BlackRock prepares to launch tokenized money-market funds on Ethereum, further cementing ETH's role in institutional finance. BNY Mellon has also been increasing its stake in Strategy (formerly MicroStrategy), signaling confidence in the broader Bitcoin ecosystem.
Why it matters: When the custodian bank trusted by the world's largest asset managers expands crypto services, it removes a critical barrier to institutional adoption and signals that traditional finance infrastructure is fully embracing digital assets.
Sources: thestreet.com, Bitcoin News
Watch List
- Coinbase Q1 results: Revenue miss at $394M net loss, AWS outage compounded issues, but company increased BTC treasury to 16,492 BTC and purchased $88M more
- Strategy considers Bitcoin sales: CEO Phong Le outlined conditions under which the company would sell Bitcoin, a notable shift from the "never sell" doctrine
- Bitcoin mining pools signal Stratum V2 shift: Foundry, Antpool, and F2pool are moving toward the upgraded mining protocol
- Trump Media Q1 loss: $406M loss driven by bitcoin and crypto markdowns
- Bitcoin mining pool reserves: 3,400 BTC flowed out of miner reserves since April, suggesting profit-taking
- Sherrod Brown pivot: Former Senator, ousted with crypto industry support, reportedly changing his stance on digital assets
TL;DR
- $292M KelpDAO hack exposed via RPC poisoning attack -- new infrastructure-level threat vector for DeFi
- US Senate votes May 14 on landmark crypto bill after industry lobbying to soften risky-asset provisions
- Lagarde vetoes euro stablecoin, warns $300B market threatens ECB monetary policy
- CME Bitcoin volatility futures targeting June 1 launch, pending CFTC approval
- Swiss National Bank bitcoin reserve campaign ends in failure
- Aave recovers $71M in ETH from exploited rsETH funds
- Morgan Stanley launches ETrade crypto at 0.5% fee; MSBT ETF hits $233M AUM
- Bitcoin ETFs hit 9-month inflow streak with ~$1B weekly; JPMorgan sees $30B Strategy buys ahead
- BNY Mellon expands ETH custody as BlackRock prepares tokenized money-market funds on Ethereum