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Coinbase CEO refutes the argument that crypto enthusiasts should turn to AI, stating that cryptocurrency is an indispensable universal infrastructure

Coinbase CEO Brian Armstrong tweeted in response to the viewpoint "If you're in the cryptocurrency space, turn to AI," stating that this is a flawed way of thinking and a zero-sum game mentality. Brian Armstrong emphasized that cryptocurrency is a universal technology, an infrastructure, just like electricity or the internet. It does not compete with the next hot technology because it supports the latter. It is "both-and," not "either-or." Artificial intelligence, as a major trend, does not diminish the importance of cryptocurrency. On the contrary, it makes cryptocurrency even more important.AI agents require their own financial infrastructure, and ultimately their daily trading volume will far exceed the total of all human trading volumes. They cannot open bank accounts, cannot wait three days to receive remittances, and they cannot reside in just one country. They need real-time programmable money (which is exactly what cryptocurrency is). Agents need to hold funds and make payments themselves. Coinbase was the first to launch the x402 protocol, Base, and USDC, which now support the vast majority of payments for agents. Agents will also participate in trading and act as financial advisors. They will raise or borrow funds for ongoing new projects. They will also save users from the tedious tasks of tax planning, portfolio rebalancing, and bill payments.

FATF: DeFi with identifiable controllers should be regulated as virtual asset service providers

The Financial Action Task Force (FATF) stated in a report released on Tuesday that if identifiable individuals retain "control or sufficient influence" in DeFi arrangements, its rules apply, regardless of how decentralized the project claims to be.FATF noted that many DeFi projects still frequently exhibit centralized elements in practice, including the concentration of governance tokens, management authority, upgrade control, and fees and rewards flowing to insiders. The report categorizes DeFi into three types: those with identifiable controllers, those that are actually centralized but where operators are hidden, and those that are truly leaderless, with only the last category not subject to its standards.The report stated that nearly 93% of jurisdictions responding to the survey have not applied the relevant standards to any qualifying DeFi arrangements, with only 26 out of 142 jurisdictions having assessed risks, 4 having established licensing rules, and only 2 having registered or licensed relevant platforms. FATF requires countries to mandate or encourage DeFi projects to embed anti-money laundering controls into smart contracts or interfaces; for platforms that refuse to cooperate, jurisdictions may prohibit them from operating locally as a last resort. The report also stated that the total value locked in DeFi reached $86.6 billion this year, an increase of approximately 85% compared to 2023.

first_img DeepMind co-founder claims AGI could be achieved within a few years, calls for the establishment of a cutting-edge AI standards regulatory body

According to reports, Google DeepMind co-founder Demis Hassabis recently predicted that artificial general intelligence (AGI) could be achieved in just a few years, with its transformative impact reaching ten times that of the Industrial Revolution, and its development speed accelerating tenfold. He pointed out that as the potential risks of cutting-edge models in areas such as cybersecurity, nuclear energy, and biology become increasingly prominent, the industry urgently needs to establish robust security protections for future AI systems that possess autonomy and self-improvement capabilities.To balance technological innovation and security risks, Hassabis called for the United States to take the lead in establishing a "Frontier AI Standards Agency" similar to the Financial Industry Regulatory Authority (FINRA). This agency is proposed to operate under a public-private partnership or self-regulatory organization model, managed by independent technical experts and representatives from the open-source community, primarily funded through industry contributions. Its core function is to develop dynamic scientific assessment protocols, initially requiring frontier laboratories to voluntarily submit for review 30 days prior to the release of models, with plans to eventually transition to mandatory market entry testing, while non-frontier models from startups or academic institutions would be exempt. This framework aims to address unknown crises through a technology-driven review mechanism and to promote a global consensus on AI risk management within the international community.

The American Securities Transfer Association wrote to the SEC: Third-party tokenized stocks pose risks and should prioritize the issuer authorization model

According to CoinDesk, as the competition for tokenization in the capital markets heats up, the Securities Transfer Association (STA) recently submitted a letter of opinion to the U.S. Securities and Exchange Commission (SEC), warning that stock tokens issued by third-party organizations may undermine market integrity and calling on regulators to prioritize support for tokenized securities authorized by publicly listed companies in future rule-making.The STA represents several Wall Street transfer agents, whose members believe that true tokenized stocks should be formally authorized by the issuing company and recorded in the official shareholder register, rather than created as "packaged" token products by independent platforms.The association pointed out that third-party stock tokens may confuse investors about the actual rights they hold and expose them to risks related to platform credit, custody, and operations, without establishing a direct legal relationship with the publicly listed company. Therefore, any innovative exemptions, pilot projects, or permanent regulatory frameworks for tokenized securities should prioritize the issuer-supported model.The STA also urged the SEC to reform the existing Direct Registration System (DRS), arguing that the current U.S. securities custody system is inadequate to meet the real-time transfer and settlement needs of on-chain securities, and suggested that regulators collaborate with the Depository Trust & Clearing Corporation (DTCC) to optimize the digital securities infrastructure.Currently, the global market for tokenized stocks, valued at approximately $2 billion, is primarily dominated by third-party models, including products launched by Ondo Finance and Kraken, while organizations like Securitize and Figure adopt the issuer authorization model.
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