united states

AI regulations in global focus as EU approaches regulation deal

Concerns over the potential misuse of AI have prompted the U.S., U.K., China and the G7 to speed up regulation of the technology, but Europe is already ahead.

The surge in generative artificial intelligence (AI) development has prompted governments globally to rush toward regulating the emerging technology. The trend matches the European Union’s efforts to implement the world’s first set of comprehensive rules for AI.

The EU AI Act is recognized as an innovative set of regulations. After several delays, reports indicate that on Dec. 7, negotiators agreed to a set of controls for generative AI tools such as OpenAI’s ChatGPT and Google’s Bard.

Concerns about the potential misuse of the technology have also propelled the United States, the United Kingdom, China and other G7 countries to speed up their work toward regulating AI.

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‘If I was the government, I’d close it down’ — JPMorgan CEO on crypto

Jamie Dimon has previously referred to cryptocurrencies as “decentralized Ponzi schemes” and Bitcoin as a “fraud.”

JPMorgan Chase chair and CEO Jamie Dimon told several United States lawmakers that if he had the authority in government, he would try to shut down crypto.

In a Dec. 6 hearing of the Senate Banking Committee on oversight of Wall Street firms, Dimon responded to questioning from Massachusetts Senator Elizabeth Warren, who claimed North Korea had funded much of its missile program using “proceeds of crypto crime” in addition to funding Hamas. The JPMorgan Chase CEO said he had “always been deeply opposed to crypto” and associated digital assets with “criminals” and “drug traffickers” in addition to tax avoidance.

“If I was the government, I’d close it down,” said Dimon.

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US senators drill into FTC’s work to track AI attacks on older citizens

The senators asked the FTC chair four questions about AI scam data collection practices to find out if the commission can identify AI-powered scams and address them accordingly.

Four United States senators have written to Federal Trade Commission (FTC) Chair Lina Khan requesting information on efforts taken by the FTC to track the use of artificial intelligence (AI) in scamming older Americans.

In the letter addressed to Khan, U.S. Senators Robert Casey, Richard Blumenthal, John Fetterman and Kirsten Gillibrand highlighted the need to respond effectively to AI-enabled fraud and deception.

Underlining the importance of understanding the extent of the threat in order to counter it, they stated:

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US crypto firms spent more on lobbying in 2023 than before FTX collapse: Report

Government transparency group Open Secrets reported U.S. crypto firms spent roughly $19 million on lobbying from January to September 2023.

Companies connected to the crypto and blockchain industry in the United States reportedly spent roughly $3 million more on lobbying in the first three quarters of 2023 than over the same period in 2022.

According to a Dec. 5 Reuters report citing data from U.S. government transparency group Open Secrets, crypto firms spent roughly $19 million on lobbying from January to September 2023, roughly 19% more than they did over the same period in 2022. Coinbase reportedly led the spending on lobbying at more than $2 million, followed by Crypto.com, Blockchain Association and Binance.

Before its collapse in November 2022, FTX had been one of the biggest spenders in the crypto space on donations to U.S. lawmakers’ campaigns and marketing efforts. Former FTX CEO Sam Bankman-Fried, who was found guilty of seven felony charges related to fraud at the exchange, used customer deposits to donate millions to political campaigns.

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Crypto-friendly US lawmaker Patrick McHenry won’t seek reelection in 2024

All 435 seats in the U.S. House of Representatives will be up for grabs in the 2024 election, with the future of crypto bills in the House Financial Services Committee uncertain.

Representative Patrick McHenry, chair of the United States House Financial Services Committee and a proponent of many pieces of crypto-focused legislation, will be retiring from Congress.

In a Dec. 5 statement, McHenry said he would not seek reelection to the U.S.

“This is not a decision I come to lightly, but I believe there is a season for everything and — for me — this season has come to an end,” said McHenry.

During his time as chair of the House Financial Services Committee, McHenry was one of the few crypto proponents in Congress who pushed for passing bills to establish regulatory clarity for digital assets.

“Chairman McHenry is an unparalleled leader who has consistently recognized the importance of responsible innovation and fit-for-purpose regulation in the financial sector,” said Sheila Warren, CEO of the Crypto Council for Innovation.

Related: Rep. Patrick McHenry blames White House for lack of urgency on stablecoin bill negotiations

Jake Chervinsky, soon-to-be former chief policy officer of the Blockchain Association, thanked McHenry on X (formerly Twitter) for his “leadership on crypto policy.” Some industry leaders on the social media platform expressed regret at the North Carolina Representative’s departure, including Coinbase president Emilie Choi.

Jury in Terraform Labs case shouldn’t decide whether crypto is a security — SEC

According to the SEC, the tokens at issue in its civil case against Terraform Labs should be a “legal question” for a court, “not a factual question for the jury.”

Lawyers representing the United States Securities and Exchange Commission requested the judge in its civil case against Terraform Labs and co-founder Do Kwon determine whether certain crypto assets are securities rather than a jury.

In a Dec. District Court for the Southern District of New York, the SEC argued that the matter of cryptocurrencies as securities under the commission’s guidelines was a “legal question to be determined [by] the Court, not a factual question for the jury.” According to the SEC, sending the question of whether certain cryptocurrencies in the Terraform Labs case qualified as securities under the Howey test — the commission’s standard for determining what is a security — opened the matter up for discussion.

“There is no genuine dispute of material fact that Defendants’ crypto asset offerings involved an investment of money, in a common enterprise, with an expectation of profit to be derived from Defendants’ efforts,” said the SEC.

Source: Courtlistener

Related: SEC faces sanctions threat as Judge questions DEBT Box case accuracy

The SEC has taken it upon itself to label different cryptocurrencies as securities in various lawsuits, including enforcement actions against Binance and Coinbase. In the commission’s case against Ripple, a federal judge ruled in July that the XRP (XRP) token did not necessarily qualify as a security, potentially leading to the SEC dropping charges against CEO Brad Garlinghouse and executive chair Chris Larsen.

The question of what cryptocurrencies qualify as securities or commodities in the United States has been an ongoing debate among lawmakers and regulators, as has the role the SEC should play in regulating digital assets. Many experts are also speculating that the SEC may soon decide on whether to approve a spot crypto exchange-traded product for the first time.

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IRS team reports rise in crypto tax investigations

According to the fiscal year 2023 report, the IRS unit investigated failures to disclose crypto holdings and report on capital gains for transactions.

The Criminal Investigation (CI) Unit of the United Internal Revenue Service (IRS) reported an increase in the number of investigations around digital asset reporting.

In its annual report released on Dec. 4, the IRS investigative arm said it had initiated more than 2,676 cases in which it had identified more than $37 billion related to tax and financial crimes in the 2023 fiscal year.

“These investigations consist of unreported income resulting from failure to report capital gains from the sale of cryptocurrency, income earned from mining cryptocurrency, or income received in the form of cryptocurrency, such as wages, rental income, and gambling winnings,” said the Criminal Investigation Unit.

Related: IRS extends comments period for new crypto tax rule to mid-November

Starting in 2019, the IRS began requiring U.S. In the report, CI chief Jim Lee said that “most people using cryptocurrency do so for legitimate purposes,” but digital assets pose a risk for financing terrorism, ransomware attacks, and other illicit activities.

Since it began increasing efforts to investigate crimes involving cryptocurrency in 2015, the IRS has seized more than $10 billion in digital assets.

Magazine: Best and worst countries for crypto taxes — plus crypto tax tips

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Coinbase initiative announces crypto-themed US presidential forum

Presidential candidates Asa Hutchinson, Vivek Ramaswamy and Dean Phillips will discuss blockchain and crypto ahead of the New Hampshire Primary.

The “Stand With Crypto” campaign launched by cryptocurrency exchange Coinbase plans to bring candidates for the 2024 United States presidential election together to discuss blockchain technology and digital assets.

According to its website as of Dec. 4, Stand With Crypto confirmed that Republican candidates Asa Hutchinson and Vivek Ramaswamy, as well as Democratic candidate Dean Phillips, will appear in person in New Hampshire on Dec.

“This special opportunity allows you to hear from each presidential candidate and will provide candidates with a venue to address the crypto and blockchain community in New Hampshire,” said Stand With Crypto.

On Jan.

At the time of publication, polls suggested that President Biden was most likely to face Trump in 2024, with the former president double digits ahead of DeSantis, Haley and Ramaswamy — roughly 58% to their 5%–13%. 1 Quinnipiac poll showed Kennedy Jr.

Related: FTX founder mulled giving Trump $5B not to run for president, says author

It’s unclear whether the Dec. and Ramaswamy, have made digital assets one of the key issues in their campaigns, but frontrunners Biden and Trump rarely speak publicly on crypto and blockchain.

In El Salvador, former President Nayib Bukele resigned from his position on Dec. Bukele advocated for the Central American nation to adopt Bitcoin (BTC) as legal tender and has been behind multiple buys of the cryptocurrency for the government.

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Binance is now 'totally different': Interview with CEO Richard Teng

The new CEO of Binance takes stock of the exchange’s future following a landmark $4.3 billion settlement with United States authorities in a one-on-one interview with Cointelegraph.

Binance CEO Richard Teng has assured the “gaps in compliance” from the early days of Binance are firmly in the past and that the crypto exchange is now “totally different.”  

Teng, the former head of regional markets for Binance, was elevated to the position of CEO on Nov.

“As part of the settlement, CZ cannot be involved in the day-to-day running of the company’s operations,” Teng explained.

Despite that, the incumbent CEO of Binance cuts the figure of a man reveling in the challenges ahead.

“I’m taking the baton and pushing ahead with our growth agenda while working very closely with global regulators.”

Teng believes that the “overcast” conditions clouding Binance in recent months are lifting following its staggering $4.3 billion settlement with the United States Justice Department relating to a raft of violations of U.S.

$4.3B settlement a result of early gaps in compliance

The exchange has paid dearly for mistakes made during its meteoric growth from 2017 onwards. Teng recalls how Zhao built Binance from a team of six people to a global operation consisting of thousands of employees that serves a user base estimated to be more than 166 million.

“In those very early days while we were building up the company, there were gaps in terms of compliance. That resulted in all these breaches and mistakes, but these are historical issues.”

The shortcomings of its early compliance regime have led to the largest crypto-related settlement in U.S.

Binance is now ‘totally different’: Interview with CEO Richard Teng

In a one-on-one interview with Cointelegraph, the new CEO of Binance takes stock of the exchange’s future following a landmark $4.3 billion settlement with United States authorities.

Binance CEO Richard Teng has stated that the “gaps in compliance” from the early days of Binance are firmly in the past and that the crypto exchange is now “totally different.”  

Teng, the former head of regional markets for Binance, was elevated to the position of CEO on Nov.

“As part of the settlement, CZ cannot be involved in the day-to-day running of the company’s operations,” Teng explained.

Despite that, the incumbent CEO of Binance gives the impression of a man reveling in the challenges ahead.

“I’m taking the baton and pushing ahead with our growth agenda while working very closely with global regulators.”

Teng believes that the “overcast” conditions clouding Binance in recent months are lifting following its staggering $4.3 billion settlement with the Justice Department relating to a variety of violations of U.S.

$4.3 billion settlement a result of early gaps in compliance

The exchange has paid dearly for mistakes made during its meteoric growth from 2017 onwards. Teng recalled how Zhao built Binance from a team of six people to a global operation consisting of thousands of employees that serves a user base estimated to be more than 166 million.

“In those very early days, while we were building up the company, there were gaps in terms of compliance. That resulted in all these breaches and mistakes, but these are historical issues.”

The shortcomings of its early compliance regime have led to the largest crypto-related settlement in U.S.