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⚡️🧑‍⚖️ Federal Reserve Seeks Public Comment on GENIUS Act Stablecoin Rules

The Federal Reserve Board on Thursday requested public comment on two proposals related to establishing a regulatory framework for Board-supervised payment stablecoin issuers under the GENIUS Act.

🔜 The first proposal would require that Board-supervised payment stablecoin issuers fully back their stablecoins with certain permissible reserve assets, such as short-term Treasury bills and certain other high-quality, liquid assets.

🟠The proposal would also establish standardized capital requirements to address certain credit and operational risks of payment stablecoin activities, as well as risk management standards, in accordance with the law.

🟠Separately, the proposal would introduce rules for Board-supervised firms that safekeep the assets backing payment stablecoins. It would also clarify the permissibility of stablecoin and related activities for Board-supervised banks.

🔜 The second proposal would establish a tailored application process for Board-supervised banks applying to issue payment stablecoins. These applicants would be required to submit a business plan and financial information, among other documents. The proposal would also create a process governing appeals, hearings, and final determinations for applications.

The comment period will close 60 days after publication in the Federal Register.

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⚡️🇺🇸🇨🇳 The White House shares first look at Trump and Xi Jinping’s meeting today

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😺 OpenAI hacked Medicare portal, Australia Prime Minister Anthony Albanese says

Prime Minister Anthony Albanese has revealed an AI agent hacked into an Australian Medicare data portal earlier this year. The AI agent accessed both public and non-public files.

The agent was conducting research into public medical spending when it found a way to break through privacy protections. Albanese said it took 3 months for OpenAI to admit the breach, which he said was unacceptable.

"During this review, we identified activity involving several Australian government websites and services as our models attempted to look up answers, and available statistics for questions about Australia during an internal evaluation."

"In the course of that, our models took actions we did not intend. Our review found no evidence of patient records being accessed. The information accessed included aggregate health statistics and internal file names," — an OpenAI spokesperson said.


Albanese announced a taskforce would be set up to provide an "urgent and immediate review" of the incident. OpenAI's overall review was ongoing and it remained "committed to transparency".


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🇧🇷🤑 Pix meets Stellar

Pods is now enabling Pix → Stellar, connecting Brazil’s instant payment rails directly to one of the world’s leading blockchain networks. This integration makes it easier for wallets, fintechs, and neobanks to move users from BRL into onchain financial products with a seamless experience.

Local rails. Global infrastructure. One integration. Another step toward making onchain finance invisible to the end user. 🚀

#Stellar

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🇺🇸 U.S. commodities firms can invest in tokenized assets, use blockchain records: CFTC

The U.S. CFTC
is continuing to hang the welcome sign for crypto and blockchain activity in the derivatives space, advising regulated firms that tokenized assets can be treated the same as the things being tokenized and blockchains are sufficient for recordkeeping.

❗️The agency issued updated guidance on Thursday that instructed platforms overseen by the CFTC that customer funds can be invested in the tokenized forms of assets that already check the box as permissible.

The regulator said the firms need to ensure that "the tokenized form of the asset grants the holder legal and economic rights that are the same or functionally equivalent to the rights received by holders of the asset in its traditional form" and that the assets are properly held.


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📹 The US Congress has set its sights on Flock Safety, a vehicle surveillance system

Senators called for tighter rules and privacy safeguards around AI-powered license plate readers, as they raised concerns about the potential consequences of errors and unrestricted access to vehicle-location data. The demands emerged Wednesday during a Senate Judiciary Subcommittee on Crime and Counterterrorism hearing focused on Flock Safety, whose network has grown to more than 120,000 cameras across 49 states.

Flock says its connected network allows law-enforcement agencies to share vehicle evidence across jurisdictions, with searches subject to audit controls. But senators and witnesses said the growing scale of the network raises new questions about privacy and Fourth Amendment protections.

“Our Bill of Rights is still good no matter what the technology of the day is,” — Republican Senator Josh Hawley said.


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🧑‍⚖️ OpenAI sued over alleged undisclosed human review of ChatGPT conversations

The plaintiffs claim OpenAI presented ChatGPT as a private, one-to-one exchange while failing to adequately disclose that human reviewers could access users’ prompts and other content.

📝 According to the ChatGPT class action lawsuit, the alleged human review is conducted through a program internally known as “Project Lily.” The lawsuit claims the program involves hundreds of contractors who review real ChatGPT conversations and evaluate the quality of the AI model’s responses.

The plaintiffs allege the practice is particularly concerning because consumers use ChatGPT to discuss highly sensitive subjects, including health, mental health, relationships, finances, employment and legal issues.

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💊🇨🇳Chinese drug loberamisal extends stroke treatment window from 6 hours to 2 days

Chinese medical scientists have shattered the brief window of time available to limit stroke damage, effectively shielding injured brain cells and dramatically improving the odds of a full recovery.

Brain cells start dying within minutes of a clot blocking an artery, leading to facial droop, affected speech and in severe cases, paralysis or death. Emergency treatments, such as clot-busting drugs or surgery, must be given within a maximum of six hours.

According to a study published by the top-tier Journal of the American Medical Association, clinical trials of the drug loberamisal found it was possible to expand the time available to 48 hours.

The large-scale multicentre phase 3 trial found that 70% of patients who received loberamisal intravenously within 2 days of a stroke regained complete functional independence — an increase of 13% points over standard care alone.

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🇺🇸 US Seeks to Expand Access to Passport Records for Voter Checks

The US State Department is moving to give state and local officials, as well as potentially some nonprofit organizations, access to passport records to verify voters’ citizenship.

The plan, laid out in a notice recently sent to key lawmakers on Capitol Hill, would add “voter eligibility” to the official list of “routine uses” for the State Department’s passport services records and provide access beyond government entities. Historically, uses of the data have primarily involved domestic and international government agencies and officials.

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⚡️🇺🇸 Trump:

Very productive meeting with President Xi for both the U.S.A. and China. Tremendous things will be happening.

Like almost everyone else, he seemed to like calling the poorly and inaccurately named Artificial Intelligence to a far more accurate and important name, SUPER INTELLIGENCE. That would be “SUPER!” Everyone last night agreed, also.


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🤑🤑 Federal Reserve Will Use Ripple, Stellar and Hedera

Federal Reserve researchers published a paper titled “Heraclius: A Byzantine Fault Tolerant Database System with Potential for Modern Payments Systems.” Crypto researcher SMQKE resurfaced it and connected it to three specific digital assets: XRP, XLM, and HBAR.

The paper is in the Fed’s Finance and Economics Discussion Series and carries authors from FRB Boston, FRB San Francisco, and FRB NIT. It examines Byzantine Fault Tolerant consensus as the architecture best suited for secure, high-speed payment infrastructure.

❗️The researchers note that a Byzantine fault-tolerant system can process 110,000 transactions per second. The Fed has validated the consensus model that these assets already run on.

📝 The Fed’s paper identifies what it calls “Federated Byzantine Agreement” in Ripple and Stellar. According to the document, “Ripple and Stellar use a federated voting process that is a variant of the Byzantine Fault Tolerance consensus model.”


#Stellar

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⚡️ Trump:

President Xi and Madam Peng have just left D.C., heading for China. The meeting was one of Friendship, Strength, and Success, for both China and the U.S.A. 🇨🇳 🇺🇸

We will be meeting again in November, in China, and then at the G20 in December, in Miami, Florida. Much has been, and will be, accomplished. I look forward to our next meeting!


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🇪🇺 EU's financial regulator to make AI and tokenization a supervisory priority in 2027

The European Securities and Markets Authority (ESMA) said it would make AI, tokenization and other emerging technologies relevant to finance a new supervisory priority from 2027.

📝 “Firms are increasingly using AI and tokenized products in day-to-day financial services to gain market share,” the financial watchdog said in a report, explaining why it is focusing on these two areas initially. “Technological innovation brings benefits but also risks.”


🔘Under its new supervisory program, the ESMA and national regulators across the EU will examine how regulated firms use AI and tokenized products in their core activities, rather than only in back-office operations.

🔘The initiative, called “Innovation with investor safeguards,” will focus on building regulators’ ability to supervise new technology and ensuring firms have proper governance, reliable data and client-aligned outcomes.

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🖥 How Open Science Can Help Researchers Prepare for the Next Pandemic

NVIDIA has joined a coalition of global research organizations, including Google DeepMind and the European Molecular Biology Laboratory’s European Bioinformatics Institute (EMBL-EBI), to release predicted 3D structures for the protein complexes of more than 2,800 viruses — openly available to any scientist, anywhere, through the AlphaFold Database.

AlphaFold2, which was optimized with NVIDIA BioNeMo to efficiently run on NVIDIA GPUs, predicts a structure in minutes and can be run in bulk. Scientists can then verify high-confidence predictions through experimental methods. For this project, the team systematically worked through the protein structures of viral families known to infect humans, from common-cold viruses to emerging threats like Mpox.

“This database is an engine for hypothesis generation,” — said Chris Dallago, applied research science team lead in digital biology at NVIDIA.

“We’re enabling biologists and the AI community to investigate protein interactions, not just as single molecules but as complexes, so the whole field can move forward.”


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