The Daily: Ethereum rolls out Fusaka, Citadel triggers DeFi backlash, police arrest two men over crypto-linked murder, and more

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

Happy Thursday! Crypto markets are showing "quiet strength," according to analysts , as bitcoin's exchange balances hit 2017 lows and a more supportive liquidity backdrop starts to take shape.

In today's newsletter, Ethereum's Fusaka upgrade goes live, Citadel sparks a DeFi backlash, police arrest two men after a murder linked to a crypto wallet theft, and more.

Meanwhile, CFTC Chair Caroline Pham hails a "new golden age for innovation in America," announcing the launch of regulated spot crypto trading.

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 !

Fusaka rollout kicks off Ethereum's new twice-a-year hard-fork schedule

Ethereum activated its 17th major upgrade, Fusaka, late Wednesday — kicking off a new twice-a-year hard-fork schedule and arriving just seven months after Pectra.

• Fusaka's headline feature is PeerDAS, a data-sampling system that increases blob capacity and reduces bandwidth needs for Layer 2 networks without compromising security.
• The upgrade also adds new pricing rules — including a minimum fee and surge pricing during busy periods — to make Layer 2 costs more predictable, and ETH fee burns more consistent.
• Fusaka brings several backend boosts too, including raising the gas limit cap and adding support for secp256r1, a widely used signing method built into most phones and laptops, which will make secure, device-native logins and passkeys easier.
• It also introduces a new opcode that improves zero-knowledge performance and helps prepare for future quantum risks.
• Ethereum development studio Consensys said the rapid rollout shows the Ethereum Foundation can meet its accelerated cadence as researchers now shift focus to the Glamsterdam upgrade in 2026.

Citadel asks SEC to regulate DeFi protocols as exchanges, sparking backlash

Citadel Securities urged the SEC to regulate DeFi protocols as exchanges and broker-dealers, arguing that broad exemptions would fracture market oversight and undermine investor protections.

• The firm said many DeFi protocols function like exchanges and broker-dealers through automated matching and transaction-based compensation, warranting full regulatory treatment.
• However, the crypto community pushed back, with Uniswap's Hayden Adams accusing Citadel of lobbying to stifle open-source, peer-to-peer technology that lowers barriers to liquidity creation.
• Blockchain Association CEO Summer Mersinger called Citadel's interpretation "overbroad and unworkable," saying it has no grounding in law and warning that regulating software developers as intermediaries would harm U.S. competitiveness without improving investor protection.

Police arrest two Ukrainian men after Vienna killing linked to crypto wallet theft

Austrian police say two Ukrainian suspects abducted and assaulted a 21-year-old man in Vienna, forcing him to surrender his crypto wallet passwords before murdering and abandoning him in his burned-out car.

• Investigators said the victim's wallets were drained after the attack, and they recovered a large amount of cash from one suspect during the arrests in Ukraine, though specific figures remain unknown.
• Surveillance footage, gas-station records, and border-crossing data helped authorities track down the suspects, who fled Austria hours after the killing.
• The case adds to a rising wave of violent, crypto-linked robberies and kidnappings across Europe and the U.S., where attackers increasingly use physical coercion to steal substantial digital assets.

American Bitcoin's treasury holdings hit 4,367 BTC

American Bitcoin has increased its treasury to 4,367 BTC after buying another 363 BTC during November's market slump, continuing what the Trump brothers-backed firm called its "strategic accumulation."

• The firm disclosed the purchases late Wednesday, adding to its holdings as bitcoin slid from over $100,000 to nearly $80,000 since its prior update.
• ABTC stock fell 38% on Monday after pre-merger private-placement shares were unlocked, though its price has partially rebounded since Eric Trump said the volatility was expected and that he was committed to holding onto his own shares.
• Last month, American Bitcoin reported sharp year-over-year growth, with Q3 revenue jumping to $64.2 million and net income swinging to a $3.5 million profit.

No, Strategy is not going to sell its bitcoin, Bitwise CIO believes

Bitwise CIO Matt Hougan said fears that Strategy could be forced to sell its bitcoin are unfounded , arguing that neither MSCI index deletion nor market pressure creates any liquidation risk.

• Hougan said any MSCI-driven impact is likely already priced in and noted that Strategy's new $1.44 billion USD reserve and long-dated debt maturities leave it under no immediate financial pressure.
• He added that Saylor's personal conviction and 42% voting share at the company further undermine the bears' "doom-loop" scenario, saying there is "no plausible near-term mechanism" that would force Strategy to unwind its bitcoin stack.

In the next 24 hours

• Eurozone GDP numbers are due at 5 a.m. ET on Friday. U.S. PCE figures follow at 10 a.m.
• Ethena is among the crypto projects set for token unlocks .