The Daily: Aave governance dispute intensifies, South Korea proposes mandatory crypto influencer disclosures and more

The following article is adapted from The Block’s newsletter, The Daily, which comes out on weekday afternoons.

Happy Wednesday! Bitcoin (BTC) rebounded to $69,000 this morning after briefly touching its year-to-date low yesterday, with Wintermute analysts attributing the move largely to short covering and light dip-buying following Trump's State of the Union remarks that also buoyed equity markets.

In today's newsletter, Aave's governance dispute intensifies, Hong Kong is set to issue its first stablecoin licenses in March, South Korea proposes mandatory asset disclosures for crypto influencers, and more.

Meanwhile, LEO's elevated token premium may signal potential movement in bitcoin seized from the Bitfinex hack and tied to 30% of the U.S. Strategic Bitcoin Reserve, according to K33.

P.S. Don't forget to check out The Funding, a biweekly rundown of crypto VC trends. It's a great read — and just like The Daily, it's free to subscribe!

Aave governance dispute intensifies as ACI founder publishes 'audit' of Aave Labs ahead of $51M funding vote

Aave governance tensions escalated again on Wednesday after Aave Chan Initiative founder Marc Zeller published an "audit" questioning Aave Labs' track record ahead of the DAO's $51 million funding vote.

• Zeller's forum post claimed Aave Labs has received about $86 million in total funding from ICO proceeds, venture rounds, DAO payments, and disputed swap-fee revenue.
• The audit also alleged roughly $5.5 million in frontend partner fees were previously redirected to a Labs-controlled address without explicit DAO approval.
• While Aave Labs had already published its own "contributions report" earlier in the day, Zeller argued it had not provided sufficient financial transparency, including detailed disclosures on costs, outcomes, or current token holdings.
• The dispute comes as tokenholders prepare to vote on what ACI described as the largest funding proposal in the protocol's history, with the audit urging greater accountability before approving new capital.
• The Block reached out to Aave Labs for comment.

Hong Kong to issue first stablecoin licenses next month

Hong Kong will issue its first batch of fiat-referenced stablecoin issuer licenses in March, Financial Secretary Paul Chan said in his annual budget speech.

• The government also plans to introduce new legislation this year to license crypto asset dealers and custodians, expanding oversight beyond trading platforms and stablecoins.
• Regulators will prioritize improving market liquidity and enabling more crypto products, including margin financing and derivatives for professional investors.
• Hong Kong is further advancing its broader digital asset strategy through tokenization initiatives, CBDC infrastructure upgrades, and plans to adopt global crypto tax reporting standards.

Anchorage Digital discloses holding in Strategy's STRC

Anchorage Digital disclosed Wednesday that it holds Strategy's STRC perpetual preferred stock on its balance sheet, signaling alignment with the bitcoin treasury firm.

• CEO Nathan McCauley said the position reflects Anchorage's conviction in Strategy and the growing trend of institutions structuring balance sheets around bitcoin.
• However, Anchorage declined to disclose the size of its STRC holdings or when the position was acquired.
• STRC pays an 11.25% annual dividend and helps fund Strategy's bitcoin acquisitions, offering investors income alongside indirect exposure to its bitcoin treasury.
• The move follows Anchorage's recent $100 million equity investment from Tether, deepening their partnership around regulated stablecoin infrastructure.

Circle reports $770 million Q4 revenue as USDC circulation reaches $75 billion, targets 40% CAGR for stablecoin

Circle reported $770 million in Q4 revenue and reserve income, up 77% year-over-year, driven largely by rising USDC reserve earnings.

• USDC circulation reached $75.3 billion at year-end, increasing 72% year-over-year as adoption expanded across payments, treasury, and onchain financial use cases.
• Circle posted $133 million in Q4 net income from continuing operations and $167 million in adjusted EBITDA, reflecting sharply improved profitability.
• The company also issued long-term guidance targeting a 40% compound annual growth rate for USDC circulation, signaling ambitions to expand its share of the global stablecoin market.

South Korea proposes mandatory asset disclosure for crypto influencers

South Korea's ruling party proposed legislation requiring crypto influencers to disclose their personal holdings and any compensation tied to investment recommendations, according to a local media report.

• The bill would amend existing capital markets and virtual asset laws to target social media personalities who regularly provide crypto and financial investment advice.
• Violators would face penalties aligned with capital markets offenses such as price manipulation and front-running, as authorities seek to address conflicts of interest and misleading crypto promotions.

In the next 24 hours

• U.S. jobless claims data are due at 8:30 a.m. ET on Thursday.
• U.S. FOMC member Michelle Bowman will speak at 10 a.m.
• Blast and Aerodrome Finance are among the crypto projects set for token unlocks.

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