ChainCatcher news, according to Blockworks, the regulatory actions led by SEC Chairman Gary Gensler are becoming a fixed operating cost for crypto businesses, which may affect the pace of innovation in the industry and the development of new projects.ChainCatcher previously reported that the U.S. Securities and Exchange Commission (SEC) reached a settlement with the cryptocurrency lending platform Rari Capital. The SEC alleged that Rari's tokens constituted unregistered securities and questioned the authenticity of its automatic rebalancing mechanism. Over the past year, at least a dozen crypto-related companies, including Uniswap Labs, eToro, and Binance, have reached settlements with regulators, paying a total of over $4.3 billion in fines.

ChainCatcher news, according to The Block, the U.S. Securities and Exchange Commission (SEC) has reached a settlement regarding its charges against the DeFi platform Rari Capital. The SEC found that the company and its co-founders misled investors and did not register as brokers. The SEC stated that Rari Capital's co-founders Jai Bhavnani, Jack Lipstone, and David Lucid told investors that their managed Earn platform allowed investors to lend tokens to earn returns, which would "automatically and autonomously rebalance" their cryptocurrencies instead of doing it manually, but the company was sometimes unable to do so. The SEC also indicated that they were involved in "unregistered broker activities" related to the Fuse platform. The SEC noted that the two platforms held over $1 billion in crypto assets at their peak. Certain Earn platform investors were also eligible to receive Rari governance tokens, which the agency claimed were unregistered securities.As part of the settlement agreement, Rari Capital Infrastructure LLC, which acquired Rari Capital in 2022, agreed to cease future violations of securities laws, and Rari's co-founders agreed to pay fines and are banned from serving as executives and directors for five years. According to previous reports, the lending platform Fuse was hacked in May 2022, resulting in the theft of $80 million. Rari Capital subsequently halted new deposits and began to gradually shut down the Fuse platform.

Chain Catcher news, core personnel of Fei Protocol stated on Twitter that the funds affected by the Rari Capital Fuse pool attack will be compensated within 24 hours. They also mentioned, "We underestimated the complexity of the situation, and this good handling provides us with an opportunity to reflect and learn lessons from DeFi." Regarding the theft incident, they stated, "When a DAO holds significant non-native assets, the scope of token usage needs to establish strong regulations (through on-chain execution)."Previously, on August 20, Fei Labs proposed TIP-121 in the Tribe DAO governance forum, which suggested allocating the remaining DAO assets to TRIBE holders and compensating users affected by the "Rari Capital Fuse pool hack" incident. (source link)