Economic

SEC insider backs tokenisation to reshape Wall Street

US Securities and Exchange Commission (SEC) Commissioner Hester Peirce recently discussed the potential of tokenising traditional financial assets. These include stocks and bonds, which were addressed during the Crypto Task Force’s roundtable on 12 May.

Peirce highlighted tokenisation as a natural evolution of financial infrastructure, bringing crypto assets onto blockchain networks. She argued that this shift would make financial assets more accessible and flexible, offering significant efficiency and participation benefits.

At the core of the transformation are smart contracts, which automate asset management tasks like dividend distribution and asset transfers. Peirce highlighted stablecoins and tokenised money market funds as examples of blockchain enhancing financial systems.

By decentralising assets, tokenisation allows for broader participation and enables their use in more advanced financial applications, including decentralised finance (DeFi).

Despite its promise, legal uncertainties around tokenisation remain a barrier to its widespread adoption. Peirce called for clearer regulatory guidelines, stressing the importance of treating tokenised assets and traditional securities similarly.

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Instagram calls for EU-wide teen protection rules

Instagram is calling on the European Union to introduce new regulations requiring app stores to implement age verification and parental approval systems.

The platform argues that such protections, applied consistently across all apps, are essential to safeguarding teenagers from harmful content online.

‘The EU needs consistent standards for all apps, to help keep teens safe, empower parents and preserve privacy,’ Instagram said in a blog post.

The company believes the most effective way to achieve this is by introducing protections at the source—before teenagers download apps from the Apple App Store or Google Play Store.

Instagram is proposing that app stores verify users’ ages and require parental approval for teen app downloads. The social media platform cites new research from Morning Consult showing that three in four parents support such legislation.

Most parents also view app stores, rather than individual apps, as the safer and more manageable point for controlling what their teens can access.

To reinforce its position, Instagram points to its own safety efforts, such as the introduction of Teen Accounts. These private-by-default profiles limit teen exposure to messages and content from unknown users, and apply stricter filters to reduce exposure to sensitive material.

Instagram says it is working with civil society groups, industry partners, and European policymakers to push for rules that protect young users across platforms. With teen safety a growing concern, the company insists that industry-wide, enforceable solutions are urgently needed.

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Spotify adds voice interaction to AI DJ in 60+ markets

Spotify is giving its AI DJ a major upgrade, allowing users to make voice requests for music, mood changes, and genre shifts. Previously a passive listening experience, the AI DJ now offers interactive features for Premium subscribers in more than 60 markets.

Users can now ask the AI DJ to play songs by a specific artist, switch genres, or change the vibe of a playlist entirely. The feature supports English voice commands at launch, with more languages likely to follow.

To access it, type ‘DJ’ in the Spotify search bar, then hold the DJ button in the bottom-right corner to issue a voice request. For quick changes without speaking, users can simply tap the DJ button.

Spotify first introduced the AI DJ in February 2023 in the US and Canada, later expanding the feature globally in August. In late 2023, the company also added a Spanish-speaking AI DJ to its lineup.

The new voice interactions mark Spotify’s latest step in personalising the streaming experience through AI.

Alongside the AI DJ, Spotify also offers another AI tool that allows users to create playlists using text prompts—highlighting the company’s ongoing push to integrate generative AI into music discovery and curation.

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India increases scrutiny of crypto in border regions

India has ramped up surveillance of crypto transactions in Jammu and Kashmir and other border regions, following security concerns. The Financial Intelligence Unit (FIU-IND) advised crypto platforms to monitor transactions linked to ‘private wallets,’ enabling peer-to-peer transfers without oversight.

The government’s move aims to curb illicit finance and cross-border terror funding, which could be obscured by these transactions. The border region has been a flashpoint, with crypto seen as a tool for bypassing financial routes and supporting terror networks.

Crypto platforms now face heightened scrutiny beyond routine reporting, with specific attention on transactions from border areas. Privacy coins like Monero and Zcash could complicate enforcement, but experts believe the right frameworks can balance privacy and security.

India’s action aligns with global efforts to tackle crypto-financed terrorism. Law enforcement agencies worldwide are increasing scrutiny of digital assets linked to terror groups.

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Amazon to invest in Saudi AI Zone

Amazon has announced a new partnership with Humain, an AI company launched by Saudi Arabia’s Crown Prince Mohammed bin Salman, to invest over $5 billion in creating an ‘AI Zone’ in the kingdom.

The project will feature Amazon Web Services (AWS) infrastructure, including servers, networks, and training programmes, while Humain will develop AI tools using AWS and support Saudi startups with access to resources.

A move like this adds Amazon to a growing list of tech firms—such as Nvidia and AMD—that are working with Humain, which is backed by Saudi Arabia’s Public Investment Fund. American companies like Google and Salesforce have also recently turned to the PIF for funding and AI collaborations.

Under a new initiative supported by former US President Donald Trump, US tech firms can now pursue deals with Saudi-based partners more freely.

Instead of relying on foreign data centres, Saudi Arabia has required AI providers to store data locally, prompting companies like Google, Oracle, and now Amazon to expand operations within the region.

Amazon has already committed $5.3 billion to build an AWS region in Saudi Arabia by 2026, and says the AI Zone partnership is a separate, additional investment.

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Thailand embraces digital tokens for public investment

Thailand’s Finance Ministry is preparing to launch 5 billion baht ($150 million) in digital investment tokens known as the G-Token within the next two months. The initiative is designed to raise public funds through a new blockchain-based model.

Unlike traditional bonds, the G-Token will not be classified as a debt instrument. Instead, it will form part of the country’s budget borrowing plan and allow direct public participation.

Retail investors will be able to invest small amounts, with potential returns expected to exceed standard bank deposit rates.

The G-Token is expected to comply with all Bank of Thailand regulations and may enhance activity in the secondary bond market by improving liquidity and accessibility. The initial rollout will serve as a trial, with future issuances depending on investor interest.

Thailand’s cabinet has already approved the plan, which supports broader digital asset strategies under the ruling Pheu Thai Party. With the central bank recently lowering interest rates to 1.75%, the government is offering more attractive investment alternatives.

The country is following a growing trend in Asia towards blockchain finance, influenced in part by shifting global policies.

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TikTok unveils AI video feature

TikTok has launched ‘AI Alive,’ its first image-to-video feature that allows users to transform static photos into animated short videos within TikTok Stories.

Accessible only through the Story Camera, the tool applies AI-driven movement and effects—like shifting skies, drifting clouds, or expressive animations—to bring photos to life.

Unlike text-to-image tools found on Instagram and Snapchat, TikTok’s latest feature takes visual storytelling further by enabling full video generation from single images. Although Snapchat plans to introduce a similar function, TikTok has moved ahead with this innovation.

All AI Alive videos will carry an AI-generated label and include C2PA metadata to ensure transparency, even when shared beyond the platform.

TikTok emphasises safety, noting that every AI Alive video undergoes several moderation checks before it appears to creators.

Uploaded photos, prompts, and generated videos are reviewed to prevent rule-breaking content. Users can report violations, and final safety reviews are conducted before public sharing.

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Coinbase expands into Canadian stablecoin market

Coinbase has invested an undisclosed amount in Canadian stablecoin issuer Stablecorp. The move aims to strengthen the local stablecoin market and make tokenised Canadian dollars more accessible.

During the Blockchain Futurist Conference in Toronto, Coinbase Canada’s Chief Executive Officer, Lucas Matheson, discussed how the exchange would support Stablecorp’s fiat-collateralised stablecoin, QCAD.

Matheson highlighted the need for a Canadian stablecoin due to the country’s lack of peer-to-peer payment systems and costly wire transfers. Stablecoins, he argued, could enable 24/7, instant, and borderless payments, which are already feasible with current technology.

However, adoption faces regulatory challenges in Canada. The country has yet to define a clear framework for fiat-backed stablecoins. Coinbase has urged the government to classify these assets as payment instruments, not securities, in line with US regulations.

Coinbase’s investment comes as Canada continues to navigate its digital asset stance under Prime Minister Mark Carney, who remains critical of cryptocurrencies.

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Harvey adds Google and Anthropic AI

Harvey, the fast-growing legal AI startup backed early by the OpenAI Startup Fund, is now embracing foundation models from Google and Anthropic instead of relying solely on OpenAI’s.

In a recent blog post, the company said it would expand its AI model options after internal benchmarks showed that different tools excel at different legal tasks.

The shift marks a notable win for OpenAI’s competitors, even though Harvey insists it’s not abandoning OpenAI. Its in-house benchmark, BigLaw, revealed that several non-OpenAI models now outperform Harvey’s original system on specific legal functions.

For instance, Google’s Gemini 2.5 Pro performs well at legal drafting, while OpenAI’s o3 and Anthropic’s Claude 3.7 Sonnet are better suited for complex pre-trial work.

Instead of building its own models, Harvey now aims to fine-tune top-tier offerings from multiple vendors, including through Amazon’s cloud. The company also plans to launch a public legal benchmark leaderboard, combining expert legal reviews with technical metrics.

While OpenAI remains a close partner and investor, Harvey’s broader strategy signals growing competition in the race to serve the legal industry with AI.

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Senators push for lower crypto tax burden

Two US senators, Cynthia Lummis and Bernie Moreno, are urging US Treasury Secretary Scott Bessent to revise how corporate digital assets are taxed. They proposed a change to the definition of ‘adjusted financial statement income’ under the Inflation Reduction Act.

The aim is to reduce the tax burden on firms holding crypto assets.

The Act, which came into force in 2023, introduced a 15% minimum tax on companies earning over $1 billion in profits across three years. Under the current framework, unrealised crypto gains and losses may be included in taxable income.

Lawmakers argue this places US companies at a disadvantage compared to foreign competitors.

Lummis and Moreno assert that the Treasury already has the authority to act, and their proposal would offer relief to firms investing in digital assets. Both senators support crypto, with Moreno elected this year after backing from US crypto campaign groups.

The appeal comes as the Senate prepares for a second vote on the GENIUS Act, a bill aimed at regulating stablecoins. Although an earlier motion failed, Lummis has pledged ongoing support for clearer rules on digital finance.

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