Aave's governance tensions escalated significantly on Wednesday, February 26, 2026, after Aave Chan Initiative (ACI) founder Marc Zeller published an "audit" questioning Aave Labs' financial transparency. The audit, released ahead of a crucial DAO vote on a $51 million funding proposal for Aave Labs, claimed the company had received approximately $86 million in total funding from various sources, including ICO proceeds, venture rounds, and DAO payments. It further alleged that roughly $5.5 million in frontend partner fees were redirected to a Labs-controlled address without explicit DAO approval.
Zeller argued that Aave Labs' own "contributions report," published earlier the same day, lacked sufficient detail on costs, outcomes, and current token holdings. This dispute marks a pivotal moment as tokenholders prepare to vote on what ACI describes as the largest funding proposal in the protocol's history.
In parallel regulatory developments, Hong Kong's Financial Secretary Paul Chan announced that the region will issue its first batch of fiat-referenced stablecoin issuer licenses in March 2026. The government also plans to introduce new legislation this year to license crypto asset dealers and custodians, expanding oversight beyond trading platforms. Regulators will prioritize improving market liquidity and enabling more crypto products, including margin financing and derivatives for professional investors.
South Korea's ruling party proposed legislation requiring crypto influencers to disclose their personal holdings and any compensation tied to their investment recommendations. The bill aims to amend existing capital markets and virtual asset laws to target social media personalities who regularly provide crypto advice. Violators would face penalties aligned with capital markets offenses like price manipulation and front-running.
Other notable updates include: Circle reporting $770 million in Q4 2025 revenue, a 77% year-over-year increase, as USDC circulation reached $75.3 billion. The company targets a 40% compound annual growth rate for USDC. Anchorage Digital disclosed it holds Strategy's STRC perpetual preferred stock, signaling alignment with the bitcoin treasury firm, following its recent $100 million equity investment from Tether.
