Morning Minute: Ethereum's Next Upgrade Features Censorship Resistance
Decrypt
by Tyler WarnerFebruary 24, 2026
AI-Generated Deep Dive Summary
Ethereum’s latest upgrade introduces FOCIL (Fork-Choice-Enforced Inclusion Lists), a feature designed to hardcode censorship resistance into the protocol. The update, part of the Hegora network upgrade set for H2 2026, ensures that no single validator can control or censor transactions. Under this system, 17 validators are randomly selected each block to submit lists of valid transactions. Block producers must include these transactions or risk having their blocks rejected by the network. This design prevents any central authority from blocking transactions based on arbitrary criteria.
The inclusion of FOCIL aligns with Ethereum’s return to its cypherpunk ethos, emphasizing decentralization and user empowerment. Vitalik Buterin praised FOCIL as a foundation for a “cypherpunk principled non-ugly Ethereum,” while developer Ameen Soleimani raised concerns about potential misuse, arguing that validators could impose constraints on builders through force-inclusion of transactions.
This development has significant implications for the crypto space. By ensuring that transactions are processed based solely on protocol rules, Ethereum becomes less susceptible to external pressures from governments, banks, or exchanges. However, it also raises compliance challenges, as traditional financial systems like the U.S. banking sector enforce sanctions and restrictions, which Ethereum’s design currently bypasses. This could lead to regulatory scrutiny and discussions about how decentralized protocols can coexist with existing legal frameworks.
For users, this means greater financial freedom and reduced risk of arbitrary censorship. Ethereum’s updated system treats all valid transactions equally, regardless of the parties involved or their geographic location. While this empowers individuals and organizations to transact without fear of being frozen out by centralized entities, it also shifts the burden of compliance onto users, who must ensure their activities align with legal and regulatory requirements.
Overall, FOCIL marks a significant step toward making Ethereum a truly decentralized and permissionless platform. However, its long-term impact on crypto regulation and compliance will likely be a key area of focus for developers, policymakers, and the broader crypto community.
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Originally published on Decrypt on 2/24/2026