Ethereum's Pectra Upgrade Activates Wednesday, Boosting Network Efficiency Samourai Wallet Defense Calls for Dismissal, Citing Withheld Evidence House Lawmakers Unveil Draft Bill to Clarify U.S. Crypto Regulations
2min read Ethereum is on the brink of its most significant software upgrade since the 2022 Merge, with developers gearing up to activate the Pectra update on Wednesday. This upgrade is set to introduce 11 new Ethereum Improvement Proposals (EIPs), aimed at enhancing the network's usability and operational efficiency. A key component of Pectra is EIP-7702, which brings smart contract functionality to Ethereum wallets, moving the network closer to "account abstraction." This design shift allows users to perform advanced actions, such as paying gas fees in tokens other than ETH, which is expected to reduce friction for non-technical users. Another major change is EIP-7251, which increases the maximum amount of ETH a validator can stake from 32 to 2,048, simplifying operations and accelerating validator deployment for staking operators. The Pectra upgrade has been in the works for years, with its launch originally expected in 2024. However, multiple bugs discovered during testnet trials delayed the launch, requiring three separate rounds of testing before developers gave the green light.
In a significant legal development, defense attorneys for Samourai Wallet are calling for the dismissal of charges against its co-founders, accusing federal prosecutors of withholding crucial evidence. In a Monday court filing, Samourai’s lawyers revealed that six months before prosecutors charged Keonne Rodriguez and William Hill with conspiracy to commit money laundering and operating an unlicensed money transmission business, they were informed by the Financial Crimes Enforcement Network (FinCEN) that Samourai Wallet did not require a license under U.S. regulations. The defense claims that the government failed to disclose this opinion to the court or to them until April 1, when they submitted a formal request for evidence suggesting the defendants didn’t need a license. The lawyers argued that the prosecutors' decision to charge the defendants despite FinCEN's opinion is shocking. If the case proceeds, the next hearing is scheduled for July 22 in the Southern District of New York.
A long-awaited effort to clarify how the U.S. regulates cryptocurrencies took a significant step forward on Monday, as House lawmakers unveiled a new draft bill focused on digital asset market structure. The draft, released jointly by the House Financial Services and agriculture Committees, outlines how crypto firms could register with either the Securities and Exchange Commission (SEC) or the Commodity Futures Trading Commission (CFTC), depending on the nature of the assets they offer or trade. The goal is to close longstanding regulatory gaps and settle turf disputes between agencies. According to its authors, the bill aims to protect consumers, foster innovation, and close regulatory gaps. Built on the foundation of last session’s Financial Innovation and Technology for the 21st Century Act (FIT21), the bill proposes clearer rules for public disclosures by crypto projects and would allow developers to raise capital under the SEC’s purview or register with the CFTC to operate trading platforms for digital commodities. The bill will be the focus of a joint hearing on Tuesday between the digital asset subcommittees of both House panels. It comes as lawmakers also weigh legislation on stablecoins, with House and Senate versions already through committee. Industry groups have urged the Senate to act on its bill, the GENIUS Act, as momentum builds for a broader U.S. crypto framework.
Ask Aime: What impact will the Pectra upgrade have on Ethereum's usability and operational efficiency?
