What Is SMOG

On August 26, Ethereum researchers proposed a draft to rebuild the validator deposit contract in preparation for the future introduction of quantum-resistant signature mechanisms, allowing for a gradual phase-out of the existing BLS signature format. This proposal enables the deposit contract to support keys of different sizes and public key types, assigning labels for each cryptographic scheme, with the current BLS signature labeled as 0, and future quantum-resistant schemes to be assigned additional labels. Currently, approximately 42.4 million ETH, valued at around $10.4 billion, are staked in Ethereum, all relying on BLS validator keys. The draft remains in its early stages and must be implemented alongside subsequent consensus layer upgrades, with the Ethereum Foundation's overall quantum resistance roadmap targeting around 2029.

On August 26, Ethereum researchers proposed a draft to rebuild the validator deposit contract in preparation for the future introduction of quantum-resistant signature mechanisms, allowing for a gradual phase-out of the existing BLS signature format. This proposal enables the deposit contract to support keys of different sizes and public key types, assigning labels for each cryptographic scheme, with the current BLS signature labeled as 0 and potential future quantum-resistant schemes receiving new labels. Currently, approximately 42.4 million ETH, worth around $10.4 billion, are staked in Ethereum, all relying on BLS validator keys. This draft is still in its early stages and must be implemented alongside subsequent consensus layer upgrades, with the Ethereum Foundation's overall quantum resistance roadmap targeting around 2029.

On August 26, Bloomberg reported that the U.S. Securities and Exchange Commission (SEC) submitted a new proposal regarding investment advisers and investment companies holding digital assets on behalf of clients to the White House Office of Management and Budget for review on August 25. The federal regulatory agenda indicates that the proposal aims to 'clarify the framework for crypto asset custody,' addressing how relevant institutions can hold digital assets for clients without violating SEC regulations. The SEC stated that the proposal will also eliminate certain custody requirements that have become 'outdated' due to market developments and changes in current trading and asset holding methods, as part of Chairman Paul Atkins' initiative to modernize the regulatory framework. This move indicates that, while legislation on the structure of the crypto market remains stalled in the Senate, U.S. financial regulators are continuing to advance the crypto policy agenda initiated during the Trump administration. The complete content of the proposal will be published after the White House Office of Management and Budget completes its review. The office may modify the content, after which the proposal will be submitted for a vote by the SEC commission, currently composed of three Republican members. If approved, the SEC typically solicits public comments for at least 60 days, after which it will revise and vote again before the final rule can take effect.