Capital tightens across crypto and AI as regulators assert control, funding slows, and advanced capabilities raise urgency around security and oversight.
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In crypto, regulators and institutions are drawing clearer boundaries around capital flows and influence. Banco Central do Brasil’s ban on crypto within eFX payment rails signals a push to retain oversight of cross-border transactions, while scrutiny of Tether’s lending practices highlights growing political sensitivity around stablecoin power.
In AI, capability gains are accelerating alongside rising regulatory urgency. Artificial Intelligence Safety Institute warnings that advanced models can execute complex cyberattacks add to concerns around safety, while governments move to both restrict harmful applications and expand strategic deployment.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
Brazil Bars Crypto From eFX Rails
Banco Central do Brasil has prohibited the use of virtual assets in regulated eFX international payment services. The move aims to keep cross-border flows within supervised foreign exchange rails amidst rising money laundering concerns.
Ethereum Foundation Sells US$47M ETH
The Ethereum Foundation completed its third sale to BitMine, offloading 10,000 ETH for US$22.9 million. Total sales reached US$47 million in seven days, sparking community backlash over the scale of funding for core operations and grants.
Senators Probe Tether Loan to Lutnick Trust
Senators Warren and Wyden have questioned Commerce Secretary Howard Lutnick and Tether over a loan made to a trust benefiting Lutnick’s children. The probe seeks to ensure no favourable treatment was exchanged for regulatory influence.
Prediction Market Volumes Cross US$150B
Combined lifetime volumes for Polymarket and Kalshi hit US$150 billion in April, despite the first monthly decline in active traders. While global activity dipped, Kalshi continues to gain traction in the US sports betting category.
Nasdaq Firm Pivots to Dogecoin Mining
Shuttle Pharmaceutical Holdings is acquiring United Dogecoin in a merger backed by US$11 million in financing. The new entity plans to deploy 3,000 mining rigs, aiming to capture 1.5% of global Dogecoin mining capacity within 60 days.
ETH ETFs Suffer US$184M Outflow Streak
Ethereum ETFs posted a four-day negative streak ending 30 April, with US$184 million in net redemptions. Despite the fund outflows, spot prices rose 2.2%, suggesting institutional exits have not yet triggered broad market weakness.
VC Funding Plunges to Near Two-Year Low
Venture capital investment fell to US$659 million in April, a 74% drop from March and the lowest total since July 2024. Investors have become increasingly selective as global market caps declined by 37% since October 2025.
Tether Reports US$1.04B Profit for Q1 2026
Tether recorded a US$1.04 billion net profit in the first quarter, with excess reserves reaching a record US$8.23 billion. The issuer now holds US$141 billion in US Treasuries, making it the 17th largest holder of the asset globally.
Artificial Intelligence (AI)
Minnesota Moves to Ban AI Nudification Apps
Minnesota senators have passed a bill banning AI tools that generate fake nude images. Victims can sue creators for damages, with civil penalties of up to US$500k per use. The law targets accessible apps used for deepfake-based abuse.
AI Locates Sperm Cells to Aid With Male Infertility
Columbia’s Star method uses AI to find rare sperm cells missed by standard tests. The system found viable cells in 30% of men previously deemed infertile, assisting with treatment for the 1% of the male population affected by azoospermia.
GPT-5.5 Capable of Autonomous Cyberattacks
The UK’s AISI warns that GPT-5.5 can execute complex 32-step corporate network attacks. It cracked a reverse-engineering challenge in 10 minutes that took a human 12 hours. Experts identified a “universal jailbreak” bypassing security guardrails.
Pentagon Certifies Tech Firms for Top-Secret AI
The US Department of Defense has certified eight firms, including OpenAI and SpaceX, to run AI on classified networks. Systems will support 1.3 million personnel, utilising part of a US$33.7 billion budget for science and autonomy.
Spotify Launches Verification to Flag AI Music
Spotify has introduced a “Verified by Spotify” badge to distinguish human musicians from AI content. With synthetic tracks making up 44% of daily uploads on some services, labels have already sought removals of 135,000 AI-produced songs.
GitHub Copilot Switches to Token-Based Billing
From 1 June, GitHub Copilot will replace flat-rate subscriptions with token-based “AI Credits”. One credit equals US$0.01. The move impacts firms like Uber, which now relies on AI coding agents for 11% of its total software updates.
AI Outperforms Human Doctors in Emergency Triage
A Harvard study found OpenAI’s o1 model diagnosed 67% of ER cases correctly, beating human doctors’ 55% accuracy. Whilst 16% of UK doctors already use AI daily, researchers advocate for a triadic model involving doctors, patients, and AI.
Sanders Urges Global Treaty for AI Regulation
Senator Bernie Sanders has called for a global AI safety treaty alongside Chinese scientists, warning of misinformation and social isolation. The panel discussed super-intelligent systems despite domestic criticism regarding foreign cooperation.
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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