Hyperstition #14 — May 20, 2025
SEC Commissioner tips new crypto regime, Anza pushes Solana overhaul, DeFi Dev Corp. soars on BONK pact, and more.
SEC’s Peirce heralds rules-based crypto regime
US Securities and Exchange Commission (SEC) Commissioner Hester Peirce said the agency is moving toward clearer rulemaking for crypto assets, signaling a departure from its prior enforcement-heavy approach.
Speaking at the SEC’s annual “SEC Speaks” event, Peirce argued that many crypto tokens should not be presumed to be securities, particularly those functioning as payments, collectibles, or access tools that do not convey economic rights or expectations of profit from a central party. Her comments echoed the agency’s February statement on memecoins.
Tokens sold alongside promises of future development may still qualify as investment contracts, Peirce said, but she floated a proposed “safe harbor” that would allow early-stage networks to issue tokens without registration if they meet transparency and decentralization milestones within a fixed timeframe.
Within Peirce’s framework, commodities-like assets such as Bitcoin, stablecoins, and memecoins could fall outside SEC jurisdiction entirely. Other tokens might begin life as securities but later shed that classification once the underlying protocol becomes decentralized and no longer relies on managerial oversight.
Additionally, non-accredited US investors may be permitted to buy certain tokens through exempt frameworks or a new tailored registration regime. Expect future SEC rulemaking and congressional legislation to eventually formalize these distinctions.
Solana developer pushes historic staking overhaul
Anza has pitched overhauling Solana’s consensus protocol in what the blockchain developer described in a May 19 blog post as “the biggest change to Solana’s core protocol since, well, ever.”
The proposed changes aim to achieve a median latency of 150 milliseconds for Solana transactions which “could compete with Web2 infrastructure in terms of responsiveness,” Anza said, adding that the upgrade could unlock real-time blockchain applications previously seen as impractical. Anza is a Web3 infrastructure provider spun off of Solana Labs.
DeFi Development’s BONK pact sends stock soaring
Shares of DeFi Development Corp. (DFDV) jumped more than 60% on May 16 after the Solana treasury company announced a partnership with memecoin project BONK to co-manage a validator node on the Solana network. DeFi Development said the pact marks the first collaboration of its kind between a publicly traded firm and a memecoin holder community. Shares partly retraced Monday, declining by nearly 20%.
Additionally, DeFi Development said it purchased another 16,447 SOL, bringing its total holdings to over 609,000 SOL, or more than $100 million as of May 19. Formerly a real estate tech firm known as Janover, DeFi Development has soared over 2,800% since pivoting to Solana. It is among dozens of public companies now integrating crypto into corporate treasury strategies.
DOJ probes Coinbase data breach, contractor bribery scheme
The US Department of Justice is investigating a data breach at Coinbase tied to bribery of outsourced customer service contractors in India, according to a report from Bloomberg.
The contractors allegedly took payments from cybercriminals in exchange for divulging sensitive user information, including names and email addresses. Coinbase said no passwords or funds were directly compromised, but the data was reportedly used in targeted phishing attacks, resulting in potential losses of up to $400 million.
Coinbase disclosed the breach on May 15 and said it is cooperating with law enforcement. The company rejected a $20 million extortion attempt and has instead offered a $20 million reward for information leading to those responsible.
The US cryptocurrency exchange is not currently the subject of the DOJ investigation but faces multiple lawsuits from affected users. The breach adds to mounting legal pressures on Coinbase, including a separate inquiry by the SEC.
By the numbers…
