Crypto faces US$1.25B in ETF outflows and new event-contract rules, while AI brings security tools and fresh fears over encryption.
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This week in crypto, the CFTC moved to bring event contracts under its swap definition while excluding casino-style gambling, and US spot bitcoin, ether and Solana ETFs lost about US$1.25B combined. TRON said its post-quantum cryptography is live on testnet, and Bitcoin life insurer Meanwhile raised US$37.5M.
In AI, Anthropic’s new OSS Scanner attracted applications from crypto projects including Nethermind and ZEUS, while OpenAI published 722 mathematical manuscripts from an unreleased model. EU tech chief Henna Virkkunen defended the bloc’s AI Act against rogue-agent concerns, as Ethereum co-founder Vitalik Buterin warned that AI-driven advances in mathematics could plausibly break lattice-based cryptography within two years.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
CFTC Seeks Event Contract Authority, Excludes Casino Gambling
The CFTC proposed defining event contracts tied to sports, politics, culture and weather as swaps under federal law. A separate interim final rule would exclude casino-style gambling. Chairman Michael Selig said event contracts fall under the agency’s remit, unlike casino products.
Ether, Solana ETFs Post Outflows as BTC Reverses
US spot ether ETFs recorded US$542.1 million in weekly net outflows, extending their losing streak to nine trading days. Solana ETFs lost US$24.8 million, ending a 14-week inflow run, while bitcoin ETFs shed US$681.1 million. Together, the three categories lost about US$1.25 billion.
TRON Says Quantum Protection Is Live on Testnet
TRON founder Justin Sun said the network’s post-quantum cryptography is live on testnet and could be brought to mainnet at any time. He said TRON aims to be among the first major blockchains with quantum resistance before “Q-Day”, when quantum computers could break current security standards.
Meanwhile Raises Another US$37.5 Million
Bitcoin-denominated life insurer Meanwhile raised US$37.5 million from existing investors, taking its total funding above US$180 million. Bain Capital Crypto led the round alongside other backers, as the company cited growing demand for its policies.
Mashinsky Barred From Crypto, Securities
A New York settlement permanently bars former Celsius CEO Alex Mashinsky from the cryptocurrency, securities and commodities industries. It provides for up to US$35 million in conditional payments linked to additional federal forfeiture and completion of his 12-year prison sentence for fraud.
BTC ETFs Shed US$729 Million Amid Macro Fears
US spot bitcoin ETFs saw US$729 million in net outflows during the week, reversing earlier buying. Withdrawals followed interest-rate concerns and rising oil prices amid Middle East tensions. Bitcoin traded around US$82,688, down more than 3% over seven days, according to the report.
Tether Briefly Freezes THORChain’s USDT Vaults
THORChain co-founder Chad Barraford said Tether blacklisted four network vault addresses, freezing about 1.45 million USDT. He said the team had received no prior communication and did not know the reason. Tether unfroze the addresses two hours later.
Blockchain.com Seeks CFTC Licences
Blockchain.com applied to the CFTC for a designated contract market licence and a futures commission merchant licence. An approval would let it operate an event-contract exchange and broker crypto derivatives to US retail and institutional customers.
Artificial Intelligence (AI)
EU Chief Defends AI Act Against Safety Concerns
EU tech chief Henna Virkkunen defended the bloc’s AI Act, saying it covers models’ full lifecycle and equips Europe to address rogue-agent risks. The European Commission requested safety and security information from more than 30 AI companies in August, and Virkkunen said she was assessing their responses.
Projects Apply for Anthropic’s Open Source Scanner
Ethereum client developer Nethermind and Bitcoin wallet ZEUS applied to Anthropic’s OSS Scanner, an opt-in programme providing vulnerability reports from powerful AI models, including Claude Mythos. Their requests sought security reviews of their code.
US Announces Quantum Competition Amid Science Push
The US administration announced more than US$6 billion in science initiatives, including up to US$215 million for a quantum-computing competition and US$2.4 billion in AI industry commitments. The contest will fund work on fault-tolerant quantum systems to protect digital assets.
Buterin Warns AI Could Break Some Encryption
Vitalik Buterin said AI-driven advances in mathematics could plausibly break lattice-based cryptography within two years. The Ethereum co-founder urged the industry to prepare for cryptography vulnerable to both AI advances and quantum computers.
Gamers Use Claude AI Agents to Create Mashups
Gamers are using Claude-based AI agents to build unusual video-game mashups in hours, including skateboarding across Call of Duty maps and fighting Elden Ring bosses with Minecraft elements. Passthrough mods run two games together, with one providing the world and the other its gameplay.
Cryptographer Challenges Drake’s Warning
Ethereum researcher Justin Drake warned that AI-assisted advances in classical mathematics could undermine elliptic-curve cryptography before “Q-Day”, which was challenged by Coinbase cryptography head Yehuda Lindell regarding security assumptions underpinning elliptic-curve cryptography.
OpenAI Releases 722 Math Manuscripts
OpenAI published 722 mathematical manuscripts from an unreleased internal model. Only 162 papers had Lean-formalised main results, about 22% of the total. MIT’s Andrew Sutherland said the claim that one prompt and one agent produced them remains unverified.
Seoul Megachurch Probes Potential Data Leak
Yoido Full Gospel Church said data linked to 850,000 members may have been compromised, including names, birth dates, and change logs for personal details. Another Seoul church also reported exposed records, while AI’s role remains unclear.
That’s all for this week’s Pasar Pulse. Want more insights? Stay tuned to our site or subscribe via email!
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