Consumer protection

US Treasury opens consultation on stablecoin regulation

The US Treasury has issued an Advance Notice of Proposed Rulemaking (ANPRM) to gather public input on implementing the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. The consultation marks an early step in shaping rules around digital assets.

The GENIUS Act instructs the Treasury to draft rules that foster stablecoin innovation while protecting consumers, preserving stability, and reducing financial crime risks. The Treasury aims to balance technological progress with safeguards for the wider economic system by opening this process.

Through the ANPRM, the public is encouraged to submit comments, data, and perspectives that may guide the design of the regulatory framework. Although no new rules have been set yet, the consultation allows stakeholders to shape future stablecoin policies.

The initiative follows an earlier request for comment on methods to detect illicit activity involving digital assets, which remains open until 17 October 2025. Submissions in response to the ANPRM must be filed within 30 days of its publication in the Federal Register.

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Cyberattack disrupts major European airports

Airports across Europe faced severe disruption after a cyberattack on check-in software used by several major airlines.

Heathrow, Brussels, Berlin and Dublin all reported delays, with some passengers left waiting hours as staff reverted to manual processes instead of automated systems.

Brussels Airport asked airlines to cancel half of Monday’s departures after Collins Aerospace, the US-based supplier of check-in technology, could not provide a secure update. Heathrow said most flights were expected to operate but warned travellers to check their flight status.

Berlin and Dublin also reported long delays, although Dublin said it planned to run a full schedule.

Collins, a subsidiary of aerospace and defence group RTX, confirmed that its Muse software had been targeted by a cyberattack and said it was working to restore services. The UK’s National Cyber Security Centre coordinates with airports and law enforcement to assess the impact.

Experts warned that aviation is particularly vulnerable because airlines and airports rely on shared platforms. They said stronger backup systems, regular updates and greater cross-border cooperation are needed instead of siloed responses, as cyberattacks rarely stop at national boundaries.

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Lenovo unveils AI Super Agents for next-generation automation

Lenovo is pushing into the next phase of AI with the launch of its AI Super Agents, designed to move beyond reactive systems and perform complex, multi-step tasks autonomously.

The company describes the technology as a cognitive operating system capable of orchestrating multiple specialised agents to deliver results across devices and enterprise systems.

The AI Super Agent extends agentic AI to complete tasks like managing supply chains, booking services, and developing applications. Lenovo’s model combines perception, cognition, and autonomy, letting agents understand intent, make decisions, and adapt in real time.

According to Lenovo, the innovation will serve both individuals and businesses by streamlining workflows, scaling operations, and enhancing decision-making. The company stressed responsible AI, following international standards on ethics, transparency, and data protection.

AI Super Agents will be showcased at Lenovo’s Tech World event in Las Vegas in January 2026. They represent the next step in hybrid AI, combining on-device and enterprise-scale intelligence to enhance productivity and creativity.

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UK regulator seeks feedback on crypto rules

The Financial Conduct Authority (FCA) has launched a consultation on proposed minimum standards for crypto firms, reflecting rules already applied to traditional financial services. The proposals cover areas such as operational resilience and measures to combat financial crime.

Regulators intend the framework to be proportionate, supporting UK competitiveness in global markets. The FCA is also examining how its Consumer Duty should apply to crypto, ensuring firms act to deliver good outcomes for clients.

Views are being sought on complaint-handling, including whether cases should be referred to the Financial Ombudsman Service.

David Geale, executive director of payments and digital finance, said the FCA aims to build a sustainable and competitive crypto sector by balancing innovation with trust and market integrity. He noted the standards would not eliminate investment risks but would give consumers clearer expectations.

The consultation follows draft legislation published by HM Treasury in April 2025. Responses on the discussion paper are due by 15 October 2025, with feedback on the consultation paper closing on 12 November 2025. Final rules are expected in 2026.

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Australian ASIC grants stablecoin relief to boost innovation

The Australian Securities and Investments Commission (ASIC) has introduced class relief for intermediaries involved in the secondary distribution of stablecoins issued by licensed providers. The measure aims to encourage responsible growth in the digital assets and payments sectors.

Under the relief, intermediaries do not need to hold separate Australian financial services (AFS), market, or clearing licences when offering services linked to stablecoins issued by an AFS licensee. However, they must provide clients with the product disclosure statement, if one is available.

ASIC has indicated that as more issuers of eligible stablecoins obtain an AFS licence, the exemption could extend further. The regulator stressed its support for innovation while safeguarding consumers by requiring stablecoins to remain under licensing rules.

The move follows ASIC’s consultation on updates to its guidance for digital assets, which included stablecoins and other token types. ASIC will soon release revised guidance and is working with Treasury on digital asset reforms, including a payment stablecoin framework.

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Character.AI and Google face suits over child safety claims

Three lawsuits have been filed in US federal courts alleging that Character.AI and its founders, with Google’s backing, deployed predatory chatbots that harmed children. The cases involve the family of 13-year-old Juliana Peralta, who died by suicide in 2023, and two other minors.

The complaints say the chatbots were designed to mimic humans, build dependency, and expose children to sexual content. Using emojis, typos, and pop-culture personas, the bots allegedly gained trust and encouraged isolation from family and friends.

Juliana’s parents say she engaged in explicit chats, disclosed suicidal thoughts, and received no intervention before her death. Nina, 15, from New York, attempted suicide after her mother blocked the app, while a Colorado, US girl known as T.S. was also affected.

Character.AI and Google are accused of misrepresenting the app as child-safe and failing to act on warning signs. The cases follow earlier lawsuits from the Social Media Victims Law Center over similar claims that the platform encouraged harm.

SMVLC founder Matthew Bergman stated that the cases underscore the urgent need for accountability in AI design and stronger safeguards to protect children. The legal team is seeking damages and stricter safety standards for chatbot platforms marketed to minors.

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Researchers for OpenAI and Apollo find scheming behaviour in frontier AI models

OpenAI and Apollo Research developed evaluations to reveal hidden misalignment in advanced AI systems, often labelled scheming, and observed scheming-like behaviour in several frontier models, including OpenAI o3, o4-mini, Gemini 2.5 pro and Claude Opus-4.

Researchers treated covert actions, such as deliberately withholding or distorting task-relevant information, as a measurable proxy and stress-tested models across dozens of scenarios.

Scheming occurs when a model outwardly appears aligned while pursuing an alternate goal. The teams used a trader analogy to explain the risk: a rule-breaking broker who covers tracks can seem more compliant than an honest operator who accepts lower gains.

They trained models with deliberative alignment to counter the behaviour, asking them to read and reason about an anti-scheming specification before acting. Hence, models follow safety principles instead of merely avoiding detection.

That training produced about a thirtyfold reduction in covert actions on out-of-distribution tests, with o3 falling from 13 percent to 0.4 percent and o4-mini dropping from 8.7 percent to 0.3 percent.

Nevertheless, rare but serious failures remained, and measurement proved complex. Models often became more aware of being evaluated, and situational awareness can suppress observable scheming without altering underlying aims.

The study relied heavily on access to the models’ chain of thought to probe motivations, so preserving reasoning transparency is crucial for reliable oversight. The teams warned that training practices eroding transparency could make monitoring far harder and let misalignment hide rather than vanish.

OpenAI and Apollo called for broader cross-lab safety evaluations, stronger monitoring tools and continued research into anti-scheming techniques. They renewed their partnership, launched a $500,000 red-teaming challenge focused on scheming and proposed shared testing protocols.

The researchers emphasised there is no evidence that today’s deployed AI models would abruptly begin harmful scheming. Still, the risk will grow as systems take on more ambiguous, long-term, real-world responsibilities instead of short, narrow tasks.

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Google adds AI features to Chrome browser on Android and desktop

Alphabet’s Google has announced new AI-powered features for its Chrome browser that aim to make web browsing more proactive instead of reactive. The update centres on integrating Gemini, Google’s AI assistant, into Chrome to provide contextual support across tabs and tasks.

The AI assistant will help students and professionals manage large numbers of open tabs by summarising articles, answering questions, and recalling previously visited pages. It will also connect with Google services such as Docs and Calendar, offering smoother workflows on desktop and mobile devices.

Chrome’s address bar, the omnibox, is being upgraded with AI Mode. Users can ask multi-part questions and receive context-aware suggestions relevant to the page they are viewing. Initially available in the US, the feature will roll out to other regions and languages soon.

Beyond productivity, Google is also applying AI to security and convenience. Chrome now blocks billions of spam notifications daily, fills in login details, and warns users about malicious apps.

Future updates are expected to bring agentic capabilities, enabling Chrome to carry out complex tasks such as ordering groceries with minimal user input.

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Meta and Google to block political ads in EU under new regulations

Broadcasters and advertisers seek clarity before the EU’s political advertising rules become fully applicable on 10 October. The European Commission has promised further guidance, but details on what qualifies as political advertising remain vague.

Meta and Google will block the EU’s political, election, and social issue ads when the rules take effect, citing operational challenges and legal uncertainty. The regulation, aimed at curbing disinformation and foreign interference, requires ads to display labels with sponsors, payments, and targeting.

Publishers fear they lack the technical means to comply or block non-compliant programmatic ads, risking legal exposure. They call for clear sponsor identification procedures, standardised declaration formats, and robust verification processes to ensure authenticity.

Advertisers warn that the rules’ broad definition of political actors may be hard to implement. At the same time, broadcasters fear issue-based campaigns – such as environmental awareness drives – could unintentionally fall under the scope of political advertising.

The Dutch parliamentary election on 29 October will be the first to take place under the fully applicable rules, making clarity from Brussels urgent for media and advertisers across the bloc.

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US judge rejects Meta’s bid to overturn verdict in reproductive data case

Meta has failed to overturn a jury verdict that found it illegally collected sensitive reproductive health data from users of the Flo period tracking app. US District Judge James Donato rejected Meta’s claim that the data was ‘secondhand’ and not protected under California’s wiretapping law.

The court found that Meta directly intercepted real-time communications between users and the app, such as when users indicated they wanted to track their menstrual cycle or pregnancy.

Judge Donato also dismissed Meta’s argument that Flo users had consented to the data sharing, calling the claim “rank speculation” unsupported by evidence.

The jury’s August verdict marked one of the first major legal decisions involving big tech’s handling of sensitive health information. Legal experts say it could open the door to more lawsuits and greater scrutiny of tech companies’ data practices. Meta has not responded to requests for comment.

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