Morning Minute: The Clarity Act Markup Comes May 14

Yahoo News · May 11, 2026

Morning Minute: The Clarity Act Markup Comes May 14

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Morning Minute: The Clarity Act Markup Comes May 14

The second filing brings BlackRock’s Select Treasury Based Liquidity Fund onchain, a traditional money-market fund with nearly $7 billion in assets under management. Alongside these two filings, BlackRock separately expanded its existing BUIDL fund to BNB Chain and Solana, and integrated it with DeFi platforms including Uniswap and Euler. Total BUIDL AUM now sits at $2.4 billion across eight blockchains.

Meanwhile, the broader RWA market has grown 200% year-over-year to surpass $30 billion. The great TradFi tokenization push continues, and BlackRock wants its piece of the pie…

LayerZero Finally Admits Mistake in KelpDAO Exploit

Three weeks after initially blaming Kelp DAO’s configuration choices for the $292 million rsETH exploit, LayerZero reversed course Friday.

The company published a blog post acknowledging it should never have allowed its own decentralized verifier network to serve as the sole verifier for high-value cross-chain transactions, the exact vulnerability that Lazarus Group exploited on April 18. “We made a mistake by allowing our DVN to act as a 1/1 DVN for high-value transactions,” the company wrote. “We didn’t police what our DVN was securing, which created a risk we simply didn’t see. We own that.”

The admission is a significant reversal. LayerZero’s original post-mortem placed responsibility squarely on Kelp DAO, describing the single-verifier setup as a configuration choice made against explicit guidance. Kelp’s response pointed to eight integration meetings over two and a half years in which LayerZero personnel never flagged the configuration as a security risk, and cited LayerZero’s own quickstart documentation and GitHub examples as showing the 1-of-1 DVN as the default setup. A Dune analysis found 47% of approximately 2,665 active LayerZero OApp contracts were running the same configuration at the time of the attack, with $4.5 billion in associated market value at equivalent risk.

LayerZero also conceded it had done “a terrible job on comms over the past three weeks” and said it should have led with directness rather than waiting for a comprehensive post-mortem. The fallout is accelerating: Kelp already migrated rsETH to Chainlink’s CCIP. Solv Protocol announced this week it is moving more than $700 million in tokenized Bitcoin infrastructure off LayerZero following a fresh security review. Soon we will find out if the apology was too little, too late or if they’ve been able to stop the bleeding.

Zcash Just Announced a Quantum-Proof Roadmap

Zcash CEO Josh Swihart shared a major roadmap update at Consensus on Thursday, including:

ZEC has rallied more than 110% in the past 30 days, partly on its post-quantum narrative, partly on its privacy narrative and partly on a Multicoin Capital investment disclosure that sent sentiment sharply higher.

The quantum-recoverable wallet, launching in June, is the first practical step. It isn’t a full quantum-proof system, but it is a transition mechanism that gives users a recovery path if current cryptographic methods are eventually broken. The broader 2027 target involves integrating NIST-standardized post-quantum signature schemes across the entire protocol stack through the Tachyon upgrade, addressing not just wallets but the underlying transaction validation architecture.

Zcash’s advantage in this upgrade is its existing use of zero-knowledge proofs. Its shielded transaction layer already uses a different cryptographic stack than transparent transactions, giving developers a stronger base to build quantum resistance from than protocols relying entirely on classical ECDSA.

The network is also showing meaningful adoption momentum independent of the quantum narrative. Zcash’s shielded pool now holds approximately 30% of all circulating ZEC, up from 11% at the start of 2025. Delphi Digital cited that growth as evidence of genuine user demand for private transactions rather than speculation. Between $600 and $700 million has moved into shielded ZEC via cross-chain swaps through Near Intents. A community proposal to cut block time from 75 seconds to 25 seconds is in active discussion, with Solana and Hyperliquid bridges already live.

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This article has been published in decrypt.co via Yahoo News.