The Ethereum Foundation and a group of leading crypto wallet developers are implementing a new security standard designed to prevent users from accidentally withdrawing their funds, a problem that has fueled some of the industry’s biggest hacks and scams.
The initiative, called “Clear Signing,” aims to replace the confusing walls of code that users currently see when approving Ethereum transactions with simple, human-readable explanations of what they are actually accepting.
The effort comes after years of phishing attacks and wallet drains that often boil down to the same problem: users unknowingly approving malicious transactions they don’t understand. The Ethereum Foundation pointed to incidents like the Bybit hack as examples of how attackers exploit “blind signing,” where users approve transactions filled with unreadable technical data.
Right now, signing a crypto transaction may feel like clicking “accept” on a terms of service page written in another language. Wallets often display long strings of code that only highly technical users can decipher, leaving everyday traders vulnerable to fake apps, malicious links, and compromised websites.
Instead, the new system would allow wallets to show clearer indications, such as what assets are being moved, who is receiving them, and what permissions are granted before users press approve.
The framework is based on a proposed Ethereum standard called ERC-7730 and a public registry where independent security researchers can review and verify transaction descriptions. Wallets can then choose which trusted sources to use when presenting information to users.
The Ethereum Foundation’s Trillion Dollar Security Initiative said it plans to oversee the infrastructure behind the ledger while encouraging wallets and developers across the ecosystem to adopt the standard.
The push highlights a growing understanding within cryptocurrencies that better security may depend less on smarter code and more on making sure users actually understand what they are signing.
“We welcome the Ethereum Foundation’s Clear Signing standard as a critical security advancement for our entire industry. This addresses a fundamental vulnerability that has plagued cryptocurrency users for years: blind signing. When users cannot understand what they are signing, security becomes much more difficult. This standard changes that, and all wallet providers should adopt it,” said Tomáš Sušánka, chief technology officer at Trezor, in an email to CoinDesk.
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