• Linea will auto-stake bridged ETH using Lido V3’s stVaults.
• Users earn passive ETH staking rewards without active input.
• Launch set for October 2025 with strong security safeguards.

In a move that could reshape yield generation on Ethereum Layer 2s, Linea, an Ethereum scaling network developed by Consensys, has unveiled plans to integrate Lido V3’s staking infrastructure.

The new feature, called Native Yield, will automatically stake ETH that users bridge to Linea, allowing DeFi participants to earn Ethereum-native staking rewards without active participation.

Notably, the integration marks a significant departure from traditional incentive models in DeFi, offering a streamlined and sustainable method for yield generation that bypasses the need for token emissions or high-risk lending protocols.

While the official launch is scheduled for October 2025, the announcement has already sparked conversations about its potential impact on Ethereum’s broader ecosystem.

Turning idle Ethereum (ETH) into active DeFi yield

At the core of Linea’s strategy is the belief that ETH capital sitting idle on Layer 2 networks is a missed opportunity.

Currently, ETH bridged to most L2s must be manually deployed in DeFi protocols to generate returns.

However, with Native Yield, Linea aims to flip that model by auto-staking bridged ETH via Lido V3’s smart contracts.

This system not only simplifies staking for users but also addresses a broader issue that Linea says is plaguing DeFi: incentive fragmentation.

According to Linea, the current model of chasing high APRs across multiple chains has become unsustainable, with users constantly migrating liquidity for short-term gains.

Native Yield seeks to create a more stable environment by generating sustainable 3–5% staking rewards derived from Ethereum’s proof-of-stake consensus.

Built with Lido V3’s stVaults and safeguards

The technical foundation of this system lies in Lido V3’s stVaults—non-custodial smart contracts designed for trustless staking.

These contracts are operated by Node Operators selected by Linea, and withdrawal keys are held in secure contracts, not by any centralised party.

This design ensures that staking is transparent, permissionless, and secure.

To maintain capital efficiency while ensuring smooth user withdrawals, Linea will implement a Liquidity Buffer.

This buffer consists of unstaked ETH to accommodate high withdrawal demand. In periods where demand exceeds the buffer, users may receive stETH, which can be traded on secondary markets.

This design minimises friction while keeping user funds productive.

Additionally, the system incorporates EIP-7002, a mechanism that allows forced unstaking in the event of governance failures or security risks.

If required, the system can disengage from DAO control using an “escape hatch” mechanism, providing an extra layer of protection for users.

To manage the auto-staking process, Linea has introduced a role called the Native Yield Operator.

This operator is responsible for overseeing the staking flows and ensuring the system stays balanced.

However, governance is not centralised. If liquidity thresholds are breached or performance falters, users themselves can initiate rebalancing actions or trigger withdrawals.

These built-in safeguards aim to make Linea’s staking ecosystem resilient to both operational challenges and governance attacks.

In a space where smart contract risks and centralised control remain key concerns, Linea’s architecture stands out for its proactive risk mitigation measures.

The road ahead

While many L2s rely on token incentives to attract capital, Linea is charting a different course.

By offering sustainable, Ethereum-native yields without the need for token emissions or temporary rewards, Linea believes it can attract long-term capital.

This shift could improve liquidity depth and trade execution, giving the network a competitive edge in the DeFi space.

Still, not everyone is convinced. Lido V3’s stVaults are relatively new and have yet to be tested at scale.

Some critics argue that more established alternatives, such as StakeWise V3 Vaults, may offer a safer route.

Nonetheless, Linea remains committed to its roadmap and has not indicated any changes ahead of its October launch.

Linea’s Native Yield feature is not just a technical upgrade—it is a strategic effort to redefine how Ethereum Layer 2s compete for liquidity.

By combining staking infrastructure, non-custodial design, and a clear governance framework, Linea is positioning itself as a secure, yield-generating hub for ETH.

If the system proves effective in attracting and retaining liquidity, Linea could establish itself as one of the most capital-efficient and Ethereum-aligned L2 networks.

As the October 2025 launch draws closer, all eyes will be on whether this bold approach can deliver both performance and trust at scale.

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SharpLink Gaming, a prominent player in the gaming and technology sector, recently unveiled a strategic plan to allocate $425 million into Ethereum (ETH) reserves. This significant financial maneuver positions the company among notable institutions adopting cryptocurrency assets as part of their treasury strategies.

The decision mirrors past instances seen in the crypto market, where firms leverage substantial digital asset investments for both financial stability and market positioning.

Strategic Investment Details and Key Stakeholders

Announced in a detailed securities purchase agreement, SharpLink Gaming plans to conduct a private investment in public equity (PIPE). The offering involves the issuance of approximately 69.1 million shares, priced at $6.15 per share, with a slightly higher rate of $6.72 per share for certain management team members.2

The anticipated aggregate gross proceeds from this private placement will total around $425 million before factoring in placement agent fees and additional expenses.

Leading this sizable investment round is ConsenSys Software Inc., a recognized blockchain technology company. The funding initiative also attracted a host of high-profile crypto-focused venture capital firms and infrastructure providers.

Notable participants include ParaFi Capital, Electric Capital, Pantera Capital, Galaxy Digital, Ondo, Arrington Capital, White Star Capital, GSR, Hivemind Capital, Hypersphere, Primitive Ventures, and Republic Digital. Additionally, senior executives from SharpLink, such as CEO Rob Phythian and CFO Robert DeLucia, have joined this strategic financial effort.

The private placement is expected to close around May 29, 2025, pending standard regulatory and closing conditions. SharpLink has clearly outlined its intent to utilize the raised funds primarily to acquire Ethereum (ETH).

The cryptocurrency will act as the company’s principal reserve asset, providing both liquidity and potential for appreciation. A.G.P./Alliance Global Partners is exclusively managing the offering’s placement process.

Ethereum Adoption and Strategic Advisory

SharpLink Gaming’s move highlights the broader corporate trend of integrating cryptocurrencies, particularly Ethereum, into treasury management practices.

Ethereum’s blockchain network, renowned for its versatility and smart contract capabilities, is becoming increasingly attractive to traditional businesses aiming to diversify their financial strategies.

Rob Phythian, SharpLink’s founder and CEO, highlighted this strategic initiative as a notable expansion beyond the company’s existing operational focus.

Phythian expressed enthusiasm about collaborating closely with ConsenSys and specifically welcomed Joseph Lubin, Ethereum’s co-founder, to SharpLink’s board of directors. Lubin’s inclusion brings substantial blockchain expertise, potentially enabling SharpLink to optimize its Ethereum reserve strategy effectively.

ConsenSys CEO Joseph Lubin, a pioneer in the Ethereum ecosystem, echoed this sentiment. Lubin stated that ConsenSys aims to actively assist SharpLink in shaping its Ethereum-based treasury framework and further advised the company on blockchain technology integration.

Lubin views SharpLink’s strategic commitment as beneficial not only for Ethereum’s growth but also for the broader public market understanding of blockchain’s practical business applications.

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ConsenSys CEO Joseph Lubin recently suggested that US President Donald Trump’s family may “build one or more giant businesses” on Ethereum (ETH). Responding to an X thread about Trump’s recent ETH purchases, Lubin stated that the Trump Administration is exploring ways the US could support Ethereum.

Trump Family To Start Businesses On Ethereum?

After a relatively subdued price performance and limited public attention in 2024, ETH may be set for a resurgence in 2025. In a post on X, crypto expert DCinvestor highlighted that Trump-backed decentralized finance (DeFi) venture World Liberty Financial has significantly increased its ETH holdings.

Data from Etherscan reveals that World Liberty Financial’s wallet currently holds 55,719 ETH, valued at over $183 million at the time of writing. Lubin’s recent comments hint at a deeper involvement by the Trump family in the cryptocurrency industry. He said:

The Trump Administration will do what is good for the USA and that will involve ETH, considerations of how the USA can support Ethereum — the most capable and largest decentralized protocol ecosystem for the benefit of the USA, and perhaps eventually use Ethereum technology in government activities just as they currently use the internet and web protocols.

Lubin further noted that, in addition to Ethereum, the Trump family might engage with other blockchain ecosystems, such as Bitcoin and Solana. The recent launch of the official Trump meme token on Solana appears to validate this statement.

Besides ETH, the World Liberty Financial wallet holds other tokens such as Aave (AAVE) and Chainlink (LINK). The DeFi project is expected to become operational soon.

Analysts Eye ETH Rally Soon

As Ethereum continues to trade in the low $3,000 range, crypto analysts are becoming increasingly confident of an imminent rally for the the second-largest digital asset by market cap. 

Seasoned crypto trader Michael van de Poppe highlighted World Liberty Financial’s growing ETH exposure as a bullish signal for the cryptocurrency. Poppe added that 2025 could mark a turning point for Ethereum’s performance.

From a technical perspective, crypto analyst Jelle shared a weekly ETH chart illustrating a bullish inverse head-and-shoulders pattern in formation, along with a massive ascending triangle that Ethereum may soon break out of.

Similarly, crypto analyst TraderSZ shared the following ETH daily chart, showing a bullish descending triangle pattern. The analyst remains long-term bullish on ETH, projecting targets as high as $10,000.

However, Ethereum’s prolonged underperformance has begun to dent the confidence of some whales. At press time, ETH trades at $3,278, down 1% in the past 24 hours.

Featured Image from Unsplash.com, Charts from X and TradingView.com

• Consensys cuts 20% of its workforce due to economic and regulatory challenges.
• CEO Joe Lubin criticizes the SEC’s actions as a harmful “abuse of power.”
• The company aims to enhance decentralization and evolve into a “Network State.”

Consensys, a pioneering force in blockchain technology and a primary supporter of the Ethereum network, recently announced a reduction of 20% in its workforce.

Affected employees will receive severance packages, extended healthcare benefits, and outplacement services to support their transition.

The decision stems from a combination of challenging macroeconomic conditions and increasing regulatory pressure in the cryptocurrency sector, with Consensys’ leadership pointing to the US Securities and Exchange Commission’s (SEC) “abuse of power” as a significant factor.

In a recent blog post, founder and CEO Joe Lubin expressed frustration over the financial and operational strains imposed by ongoing regulatory actions.

Lubin said, “Multiple cases with the SEC, including ours, represent meaningful jobs and productive investment lost due to the SEC’s abuse of power and Congress’s inability to rectify the problem.” He added that such actions from the government will cost crypto companies millions in legal fees and lost business opportunities, stifling innovation in a sector that is on the cusp of mainstream adoption.

The legal battles between Consensys and the SEC primarily focus on the regulator’s claims that Consensys has been operating as an unregistered broker, particularly through its MetaMask services.

According to the SEC, the company’s operations could involve the offer and sale of securities, which would require formal registration.

The dispute has escalated with Consensys filing a countersuit against the SEC, alleging regulatory overreach. The company argues that the SEC’s aggressive stance is a “power grab” over Ethereum, designed to exert more control over decentralized financial products.

This stance aligns Consensys with several other crypto companies, including Coinbase and Grayscale, that have also resisted SEC enforcement, signalling a larger industry pushback against unclear regulations.

Despite these challenges, Consensys maintains a strong market position, continuing to focus on Ethereum-based products like MetaMask and Infura, which have become essential tools within the blockchain ecosystem.

To navigate this uncertain landscape, the company is taking steps to streamline its operations, positioning itself for agility and long-term sustainability in an evolving, often volatile industry.

Looking forward, Consensys aims to enhance decentralization within its own structure. By progressively transforming its products into protocols, Consensys envisions itself evolving from a centralized company to a “Network State,” with tools like MetaMask anchoring this new direction. This shift could enable a more decentralized, web3-native future, where small, agile companies lead the economy and foster innovation.

Through these structural changes, Consensys seeks to uphold its commitment to Ethereum’s mission while adapting to an ever-changing regulatory and economic environment.

The US Securities and Exchange Commission (SEC) has intensified its legal battle with the crypto industry by filing a lawsuit against ConsenSys, a blockchain firm known for its MetaMask wallet product and its focus on the Ethereum network. 

The SEC alleges that ConsenSys violated federal securities laws by operating as an unregistered broker and dealer while offering services for “crypto securities,” amassing fees exceeding $250 million. 

SEC Lawsuit Against ConsenSys 

The SEC’s lawsuit against ConsenSys echoes similar complaints against other crypto firms such as Coinbase and Kraken. However, what sets this lawsuit apart is the context surrounding ConsenSys’ response to the SEC’s actions. 

In April, ConsenSys filed a lawsuit against the SEC after receiving a Wells notice seeking clarity on whether Ethereum should be classified as a security. Just recently, ConsenSys announced the closure of the SEC’s “Ethereum 2.0” investigation, interpreting it as an indication that Ethereum fell outside the agency’s jurisdiction. 

Notably, the SEC did not name Ethereum as one of the unregistered securities offered by ConsenSys in Friday’s filing, which may have led to the approval of the Ethereum ETF applications by the world’s largest asset managers on May 23.

Crypto Industry’s Regulatory Battle

ConsenSys, founded by Joseph Lubin, one of Ethereum’s developers, distinguishes itself from previous SEC targets. Rather than operating as an exchange, ConsenSys focuses on software development, including the MetaMask digital wallet. 

The SEC’s lawsuit argues that the firm violated securities laws by enabling the “swapping” of crypto assets through MetaMask. Particularly, the agency has targeted Ethereum staking services, namely Lido and Rocket Pool, alleging that their tokens, stETH and rETH, respectively, are unregistered securities.

The SEC further claims that ConsenSys facilitated over 36 million crypto asset transactions, including at least 5 million involving what the agency deems to be securities. 

Previously, the SEC had brought similar charges related to staking against Kraken, resulting in a $30 million settlement, while Coinbase has contested the charges.

While the new SEC complaint against the blockchain firm does not classify Ethereum as a security, it represents another front in the SEC’s ongoing campaign against major players in the crypto industry. 

Many within the crypto community may view this as a partial victory, given the absence of Ethereum’s inclusion as an unregistered security. However, the lawsuit further highlights the regulatory uncertainties surrounding the industry’s top companies. 

ConsenSys, currently engaged in an ongoing lawsuit against the SEC in Texas, criticized the agency’s actions, accusing it of pursuing an “anti-crypto agenda” through arbitrary enforcement actions and regulatory overreach.

At the time of writing, ETH was trading at $3,777, down 2.3% in the past 24 hours as the crypto market continues to experience significant selling pressure. 

Featured image from DALL-E, chart from TradingView.com 

• Consensys recently received a Wells notice from the SEC for its MetaMask product.
• Consensys aims to defend Ethereum’s status as a commodity.
• The company also challenges SEC’s authority over cryptocurrencies.

Consensys, a prominent Ethereum developer, has filed a lawsuit against the U.S. Securities and Exchange Commission (SEC) over what it deems as an “unlawful seizure of authority” concerning Ethereum (ETH).

The lawsuit, filed in the District Court for the Northern District of Texas, marks a significant move in the ongoing battle between crypto firms and regulators.

Consensys disputes Ethereum’s classification

At the heart of the dispute lies the classification of Ethereum (ETH) as a security.

Consensys asserts that ETH should not be considered a security and contests the SEC’s investigation into its MetaMask wallet product based on this classification. The company argues that MetaMask, a widely-used wallet interface, does not operate as a securities broker under federal law.

Consensys recently received a Wells notice from the SEC, indicating the regulator’s intent to take enforcement action against the company for alleged securities law violations through its MetaMask product. However, the compnay denies these allegations, stating that MetaMask merely provides an interface and does not hold customers’ digital assets or conduct transactions.

Potential impact on Ethereum Network

Consensys warns that the SEC’s assertion of authority over Ethereum could have detrimental effects on both the Ethereum network and Consensys itself.

The company argues that the SEC’s actions contradict past statements regarding Ethereum’s classification as a commodity rather than a security. Moreover, Consensys highlights the regulatory consensus that has shaped its business operations and expresses concerns about the implications of the SEC’s new stance.

In recent months, the SEC has intensified its scrutiny of the crypto industry, targeting exchanges and companies alike and Consensys joins other industry players in seeking legal recourse to block the SEC from treating certain cryptocurrencies or companies as securities.

The lawsuit against the U.S. SEC reflects the growing tension between crypto firms and regulators, with implications extending beyond individual companies to the wider crypto community.

As the legal battle unfolds, the outcome could significantly influence the regulatory landscape for Ethereum and other cryptocurrencies.

MetaMask developer ConsenSys plans to deploy its layer-2 network, Linea, on the main Ethereum network this week. Linea incorporates the use of zero-knowledge (ZK) cryptography, which is regarded as one of the most significant blockchain trends of the year.

Zero-knowledge (ZK) cryptography, provides more cost-effective and expedited blockchain transactions. This layer-2 network aims to improve scalability and transaction processing on Ethereum, addressing network congestion and high gas fees. According to ConsenSys, the fee rates for transactions on Linea will be 15 times lower than those on Ethereum main network.

The roll-up network implemented by Linea is commonly referred to as zkEVM, which stands for zero-knowledge Ethereum Virtual Machine. This roll-up network is designed to be fully compatible with the Ethereum Virtual Machine (EVM) programming environment. Roll-ups are also regarded as a crucial component of Ethereum’s development plan.

Related Reading: Bulls Remain Resilient Despite Litecoin’s Fall Below $100, Key Levels To Watch

Linea is being launched following a successful testnet phase, during which 5.5 million unique wallets performed over 46 million transactions in three months. According to ConsenSys, this achievement makes Linea one of the most active initiatives on Ethereum’s Goerli testnet.

App developers can deploy their projects to Linea’s “alpha” network on Friday, and the general public will have access to it starting next week.

Key Features Of Linea’s Alpha Mainnet Phase

Linea has introduced several significant upgrades with the release of its alpha mainnet stage. This includes a new outer-proof system and a dynamic fee mechanism.

Linea’s alpha mainnet stage includes a feature called batch conflation. This feature optimizes the number of layer-2 transactions and blocks that can fit into a layer-1 submitted batch. By doing so, Linea is able to reduce the fixed costs associated with layer 1 and provide a more cost-effective transaction experience.

Ethereum was priced at $1,860 on the one-day chart | Source: ETHUSD on TradingView

In addition to the lower transaction fees, the launch of Linea’s alpha mainnet stage is expected to reduce friction for developers and improve onboarding with fast finality, a capital-efficient bridge, and inherited Ethereum security. These upgrades will enable Linea to offer transaction costs that are substantially cheaper than Ethereum’s base layer.

MetaMask To Include Linea Support As Well

• ConsenSys says allegations about MetaMask as false
• The section in its terms referred to in allegations that MetaMask collects taxes on crypto only applies to given products and paid plans that the company offers, not MetaMask.
• The particular products and plans are also those that involve sales tax only.

ConsenSys, the company behind the popular MetaMask crypto wallet, has denied claims that it collects taxes on crypto transactions. 

The Ethereum blockchain software firm says that the allegations are “false” and that it has not made any changes to its terms of service to reflect this.

ConsenSys says allegations about MetaMask are false

The uproar appears to have stemmed from a section of MetaMask’s terms of service that states that the wallet retains “the right to withhold taxes as necessary.”

However, in a Twitter thread clarifying the T&Cs, ConsenSys says that the section only applies to specific products and paid plans that the company offers. It does not apply to MetaMask.

We are aware of tweets circulating with inaccurate information about ConsenSys’ terms of service.

Let’s clarify one thing upfront: MetaMask does NOT collect taxes on crypto transactions and we have not made any changes to our terms to do so.

This claim is false.

— ConsenSys (@ConsenSys) May 21, 2023

“The tax section in our terms of service falls under the “fees and payment” section, and it exclusively pertains to products and paid plans offered by ConsenSys. For example, Infura has credit card developer subscriptions which include sales tax,” the statement noted.

Adding that it believed in transparency and accuracy of information shared with users, the company added:

“Legal terminology can be complex, but it’s crucial to emphasize that this section DOES NOT apply to MetaMask or any other products that don’t involve sales tax.”

According to ConsenSys, no user assets are withheld on the premise that the user failed to pay taxes. Compliance with all applicable tax laws when it comes to customer’s assets is that user’s responsibility, the firm clarified.

User privacy and secutiry among users’ priority

Questions about MetaMask’s tax policies began to swirl as some Twitter users voiced concerns that the wallet service was working with law enforcement. 

The claims have been that the wallet is helping tax authorities to track down those deemed not to have paid taxes on their crypto holdings.

In 2022, ConsenSys came under criticism over its collection of the IP addresses and other details of users’ personal data. But pointing to its privacy policy, ConsenSys said the issue only affected those using its API-based tool Infura.

Using the tool as the default remote procedure call (RPC) in MetaMask would see it collect the user’s IP address as well as their Ethereum wallet address. However, using another RPC provider or Ethereum node in MetaMask meant no such data collection.

Ethereum venture production studio ConsenSys published a report on its 2022 progress. The company outlined the closing of a $450 million financing round, which put its valuation at over $7 billion, and the growth of its products.

Related Reading | MetaMask And Infura Clarify On Connectivity Complaints, Problem Solved?

The round was led by ParaFi Capital, as the report claims, and saw additional participation from Temasek, SoftBank Vision Fund 2, Microsoft, Anthos Capital, Sound Ventures, and C Ventures, amongst others.

Non-custodial crypto wallet MetaMask, one of ConsenSys’ most popular products, experienced a 42% increase in its monthly active users in under 4 months. This metric stands at over 30 million and suggests users are still attracted to the DeFi and NFT sectors.

In America, the United States was one of the most active countries. Similarly, Brazil, the Philippines, Germany, and Nigeria occupy this position in their respective regions.

The Ethereum production studio claims the proceeds from this financial round will be used to increase its position in ETH. The company has been a long-term ETH bull and currently uses its funds to produce yield via different DeFi protocols and their staking mechanism.

Additionally, ConsenSys announced the creation of a Decentralized Autonomous Organization (DAO) and the launch of a MetaMask native token. This announcement has generated a mixed response from users.

As Bitcoinist reported, MetaMask received critics after Ethereum infrastructure provider Infura accidentally blocked users from Venezuela. The community began discussing alternative services, less vulnerable to single points of failure.

The creation of a MetaMaskDAO and a governance token seems like measures to address this issue. According to ConsenSys, MetaMask is moving towards a “progressive decentralization”.

Users have already begun discussing incentives, yield farming, the token’s ticker, and potential incentives. The team behind the wallet is yet to provide further details on the governance model and its new token.

Ethereum ConsenSys Under The Spotlight

Joseph Lubin, CEO at ConsenSys, emphasized the company’s capabilities to “capitalize” on different trends, such as DeFi protocols, NFTs, bridges, wallets, tokens launches, and more. In that sense, Lubin added the following on their newest financial round:

This view has resonated with our crypto native and growth investors in a Series D that will enable us to execute powerful growth strategies. This round takes in digital assets as well as fiat and converts immediately to ETH. Next round will be our ‘Series ETH’ where we will assist investors in getting fully crypto native to contribute ETH as a symbol of and commitment to the ongoing paradigm shift.

Lubin added that “a major redesign” for MetaMask, possibly hinting at the new token and DAO, could be deployed sometime in 2022. In addition, MetaMask will deploy new features, and functionalities that will enable it to connect with different blockchain networks and “account security schemes”.

As Bitcoinist reported, ConsenSys recently acquired wallet service provider MyCrypto. This company will be integrated with MetaMask to increase its security and improve its user experience across multiple devices.

Ben Forman, Founder at ParaFi Capital, said the following on their investment in the Ethereum studio and MetaMask as a prominent crypto product:

In particular, MetaMask is the gateway for over 30 million users to access web3 and DeFi applications every month, making it one of the most widely used blockchain products in the world for consumers and businesses.

Related Reading | How Ethereum’s ConsenSys Could Have Secretly Sold Part Of Its Business To JP Morgan

As of press time, ETH trades at $2,631 with a 3.5% profit in the last 24-hours.