Crypto faces tightening regulation and geopolitical pressure as AI competition intensifies, with infrastructure and automation driving both sectors.
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In crypto, regulatory direction and geopolitical influence are becoming increasingly intertwined with market structure. Enforcement around crypto is tightening globally, from Tennessee’s ban on crypto ATMs to Brazil’s sweeping restrictions on prediction markets, while the US Treasury’s freezing of USDT linked to Iranian entities highlights the growing role of stablecoins in geopolitical finance.
In AI, competition is intensifying alongside structural disruption. DeepSeek’s V4 model signals China’s continued push to rival US leaders, while OpenAI and Anthropic expand capabilities into more autonomous workflows and personal integrations. At the same time, workforce reductions at Meta and Microsoft reflect a deeper shift as AI begins to absorb core functions such as coding and operations.
Get up to speed with the latest in Web3 and AI with this week’s Pasar Pulse.
Crypto and Web3
DOJ Drops Probe into Jerome Powell
US Attorney Jeanine Pirro has closed the criminal investigation into Jerome Powell regarding Federal Reserve renovation statements. This clears the way for Kevin Warsh, a vocal digital asset advocate, to be confirmed as Chair by the Senate.
Tennessee Bans Crypto ATMs After Fraud Rise
Governor Bill Lee has signed a ban on virtual currency kiosks, effective 1 July. The law targets machines linked to US$390 million in 2025 fraud losses. Operators and hosts now face misdemeanours and prison time.
Aave Proposes US$58M Rescue for Kelp DAO
Aave providers suggested a 25,000 ETH contribution to the DeFi United fund to cover Kelp DAO exploit losses. The total relief fund aims to restore backing as the protocol’s total value locked (TVL) falls to US$80 billion.
US Freezes US$344M in Iran-Linked Stablecoins
The US Treasury has frozen US$344 million in USDT across two addresses tied to the IRGC. This follows reports that Tehran has been collecting BTC tolls for passage through the Strait of Hormuz to bypass international naval blockades.
Brazil Blocks 27 Prediction Markets
Brazil has banned 27 platforms, including Kalshi and Polymarket, under rules classifying event-based contracts as gambling. Brazil will now only allow contracts linked to economic indicators to prevent rising household debt levels.
CFTC Sues New York Over Prediction Markets
The CFTC is suing New York to assert exclusive federal authority over event-based contracts. This follows state-level suits against Coinbase and Gemini, whilst a coalition of 37 states argues that federal laws do not legalise sports betting.
Paul Sztorc Unveils eCash Bitcoin Fork
Developer Paul Sztorc has announced eCash, a Bitcoin hard fork launching in August with a 1:1 ratio for BTC holders. The chain includes seven L2 “drivechains” and controversially reassigns a portion of Satoshi’s 1.1 million BTC stash.
Quantum Computer Cracks 15-Bit Encryption
Researcher Giancarlo Lelli has successfully broken a 15-bit elliptic-curve key, a smaller version of Bitcoin’s 256-bit security. Experts warn that US$450 billion in BTC remains vulnerable to future quantum attacks.
Artificial Intelligence (AI)
Maine Governor Vetoes First US Datacentre Freeze
Governor Janet Mills vetoed a bill seeking to pause large data centre approvals, citing it as critical for local jobs. Whilst over a dozen states consider similar legislation, Maine’s move prioritises investment over grid concerns.
DeepSeek Previews V4 Model to Rival US AI
China’s DeepSeek has unveiled a preview of its V4 model, designed to compete with OpenAI and Anthropic. Focused on advanced coding, the open-source system highlights compatibility with domestic Huawei hardware.
Study Finds Grok Validates User Delusions
A study by CUNY and King’s College London reveals that Grok 4.1 often validates and elaborates on user delusions. In contrast, Anthropic’s Claude 4.5 was ranked the safest model for protecting mental health.
Anthropic Expands Claude via App Connectors
Claude users can now link personal apps like Spotify, Uber, and Instacart to the AI. These connectors allow the model to provide real-time recommendations and perform tasks, with Anthropic pledging that personal data is not used for training.
Meta, Microsoft Fires Staff After Committing to AI
Meta and Microsoft are reducing workforces by thousands even as they commit over US$200B to AI infrastructure. Executives suggest AI is already handling significant coding work, potentially making some roles redundant.
OpenAI Launches GPT-5.5 to Enhance Workflows
OpenAI has debuted GPT-5.5, described as its smartest model yet for managing tasks and research. The release intensifies competition with Anthropic and arrives before a high-profile trial involving OpenAI leadership.
Microsoft Office Debuts “Agent Mode” for Copilot
Microsoft is rolling out “Agent Mode” across Office apps, allowing AI to perform multi-step edits and data entry directly on the canvas. A new real-time sidebar lets users monitor the AI’s actions as it updates spreadsheets.
Sony AI Robot Defeats Professional Sports Players
Sony’s autonomous robot, Ace, defeated professional-level human table tennis players in regulated matches. Meanwhile, in Beijing, a humanoid robot named Lightning completed a half-marathon in roughly 50 minutes.
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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