Here’s what happened in crypto today

Today in crypto, Binance’s use of a licensing exemption in the European Union faces regulatory scrutiny, MetaMask began exiting affected Ethereum staking validators as it investigates an undisclosed security incident and Coinbase-backed Stand With Crypto endorsed candidates in key congressional races ahead of the US midterms.

Binance’s EU services face scrutiny over licensing exemption: Report

European regulators are reportedly scrutinizing Binance’s use of a legal exemption to continue serving customers in the EU without authorization under the bloc’s crypto rules.

The European Securities and Markets Authority (ESMA) and regulators in France, Germany and Greece are examining Binance’s use of reverse solicitation under the Markets in Crypto-Assets Regulation (MiCA), the Financial Times reported on Thursday.

Binance withdrew its Greek MiCA application in June and said it would seek authorization in another EU member state.

Binance told Cointelegraph on Sept. 18 that it continues pursuing MiCA authorization and remains committed to operating in Europe on a long-term compliant basis.

Binance is relying on reverse solicitation to continue serving some EU customers, the report said, citing a person familiar with the matter.

The exemption allows non-EU crypto asset service providers (CASPs) to serve customers who approach them entirely on their own initiative, but ESMA’s guidelines stress that companies cannot use it to circumvent MiCA requirements.

MetaMask exits Ethereum validators amid undisclosed security incident

MetaMask has announced it is responding to a security incident affecting part of its infrastructure and is exiting affected staking validators as a precaution.

In an update on Wednesday, MetaMask said it was addressing the ongoing threat internally and was working with external partners and security advisors. It did not share what the security issue was but said it has not identified any immediate threat to MetaMask wallets.

MetaMask manages over $3 billion of staked Ether (ETH) through its infrastructure, according to its website, making it a major gateway for users wanting to stake their Ethereum.

MetaMask said the precautionary measures involve validators within its non-custodial staking operations.

Stand With Crypto backs congressional candidates ahead of midterms

Stand With Crypto has endorsed candidates in several key Senate and House races as the crypto industry steps up its involvement ahead of the US November midterm elections.

The Coinbase-backed advocacy group is supporting Republican Sen. Jon Husted in Ohio, Republican Rep. Ashley Hinson in Iowa and Democratic Rep. Chris Pappas in New Hampshire. It also endorsed House candidates from both parties, including Democrat Shomari Figures in Alabama and Republican Mariannette Miller-Meeks in Iowa.

The endorsements come two weeks after the Senate failed to advance the CLARITY Act, which would establish a federal regulatory framework for crypto markets. Stand With Crypto has since updated its candidate scorecard to reflect lawmakers’ votes on the bill and plans to increase advertising in six House races.

Crypto money is already flowing into several races. Fairshake, the industry-backed super PAC funded largely by Coinbase, Ripple and Andreessen Horowitz, has committed $30 million to support Husted against Democrat Sherrod Brown in Ohio.