Daily Edition · Page 6

THE DAILY INDEX

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MARKETS & BUSINESS

TLDR Crypto

VISA SEARCHES FOR NEW STABLECOIN SETTLEMENT PARTNER

Mastercard's acquisition of BVNK, a stablecoin settlement infrastructure provider holding active licenses in the US, Canada, UK, and Singapore, forces Visa to find a new settlement partner, as Mastercard would not continue supplying infrastructure to a direct competitor. Visa must source a replacement with equivalent four-jurisdiction regulatory coverage, a requirement that limits the candidate pool to a small number of licensed providers. The deal signals that traditional payment networks are treating regulated stablecoin settlement rails as competitive moats, with Mastercard's move simultaneously advancing its own stablecoin capabilities while cutting off Visa's access.

TRUMP SAYS CFTC WORKING TO BRING HYPERLIQUID TO THE US

At today's White House crypto meeting, Trump said CFTC Chairman Mike Selig is working to bring Hyperliquid into the United States in a fully compliant and legal fashion. The comments sent HYPE up 11%. Hyperliquid runs its order book fully onchain, operates 24/7, currently bars US users, and has grown into a top-10 token (~$15B market cap) largely on perpetual futures, including licensed contracts on stocks, gold, oil, and indices, which now make up roughly half its volume.

ALIGNED AIRDROP DETAILS

Aligned Layer announced its Genesis Drop, allocating 8.74% of the 10 billion ALIGN total supply to the community, with 44.36% of that pool (roughly 3.88% of total supply) unlocking at TGE. The community tranche (6.54% of supply) uses a tiered unlock: allocations at or below 10,000 ALIGN vest fully at TGE, while larger allocations receive 10,000 tokens at TGE with the remainder distributed linearly over 12 months. A distinguished contributors bucket (2.10% of supply) directs 1.5% to Protocol Guild and 0.2% each to L2BEAT, ZachXBT, and ZK Podcast, with almost none unlocking at TGE and the remainder vesting over 47 months.

EVERYONE IS WRONG ABOUT TODAY'S SEC ANNOUNCEMENT

The SEC proposed "Regulation Crypto Assets," its first crypto-native rulebook, creating three legal registration paths for token launches that include promises of future work, the ICO model that has operated as an unregistered investment contract in the US since 2017. The three paths are a startup exemption (up to $5M over four years with plain-language disclosure), a fundraising exemption (up to $75M per 12 months with financial statements and ongoing reporting), and an exit certification that removes investment contract status once promised development is complete. This closes the final gap in the March SEC/CFTC five-bucket token taxonomy, making US-based L1, DeFi, and DePIN launches with explicit build commitments legally viable, though tokenized equity and profit-sharing tokens remain bucket 5 and await a separate framework. The proposal enters a 60-day comment period with final adoption expected in 2027.

COMPOUND FOUNDATION HIRES COINBASE AND ANCHORAGE ALUMNI

Compound Foundation named four executives to lead an institutional expansion: Executive Director Aaron Schnarch (former Anchorage Digital COO and Coinbase Custody CEO, with custody on 9 of 11 spot bitcoin ETFs), COO Christopher Donovan (ex-NEAR Foundation), CPO Steven Liu (ex-Maple Finance and Anchorage Digital), and CTO Leo Eikelman (ex-Coinbase Institutional). The DAO approved a $52M two-year budget via Proposal 582 in May with 1.88 million COMP in favor and zero against, split $28M for operations and $24M for institutional growth, with $38M held in a milestone-gated Program Reserve and $14M released to the Foundation multisig. The initiative targets banks and asset managers with permissioned vaults featuring KYC/AML controls, tokenized equities as collateral, and portfolio-aware risk management.

NEYNAR SEEKS BUYER FOR FARCASTER SEVEN MONTHS AFTER ACQUISITION

Neynar is seeking a new operator for Farcaster, Clanker, and its developer platform seven months after acquiring the assets from Merkle Manufactory in January. Protocol fees collapsed from $35.43 million in Q1 2026 to $376,740 through mid-August, with the trailing 24-hour figure at $4,001, a 99% decline that has halted token buybacks and dropped holder revenue from $3.98 million in Q1 to zero in Q3. Neynar will return its remaining balance sheet and disband its team as it fields buyers, with CLANKER trading at $12.29 against a $12.12 million market cap. The collapse follows Farcaster's December 2025 pivot from consumer social to wallet functionality, a strategic shift that failed to arrest declining user activity after Merkle Manufactory transferred the protocol, citing the need for new leadership.

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