Economic

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.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

iOS 18.5: Satellite SOS, Screen Time alerts, and bug fixes

Apple has released iOS 18.5, bringing its life-saving satellite emergency features to iPhone 13 models for the first time. Previously available only on iPhone 14 and newer, the feature allows users to connect with emergency services via satellite when cellular or Wi-Fi networks are unavailable.

The update expands access to satellite services provided by mobile carriers, including those like T-Mobile working with Starlink. iPhone 13 users can check for availability by visiting the Cellular menu in Settings.

The satellite feature has already been credited with multiple life-saving interventions, including rescuing hikers, wildfire victims, and others in remote areas. With this update, a wider group of users can now benefit from the added layer of safety.

Alongside the satellite expansion, iOS 18.5 introduces several smaller but notable features. Screen Time now alerts parents if a child successfully guesses the parental passcode to override restrictions. The Mail app has been updated with a dedicated ‘All Mail’ tab for easier navigation.

Other changes include a new Pride wallpaper, a simplified method for subscribing to Apple TV content on smart TVs, and a fix for a bug that caused Apple Vision Pro to launch with a black screen. The update also resolves issues with Siri, enterprise app performance, and other minor bugs.

iOS 18.5 launched alongside updates for iPadOS (18.5), watchOS (11.5), visionOS (2.5), and security patches for macOS Ventura and Sonoma.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Ray-Ban Meta smart glasses priced at â‚ą29,990 for Indian market

Meta has announced that its Ray-Ban Meta smart glasses will go on sale in India starting 19 May, with prices starting at â‚ą29,990 (approximately $353). The glasses are currently available for pre-order via Ray-Ban’s official website and will be available in Ray-Ban retail stores across the country at launch.

The smart glasses support Meta AI, allowing users to ask questions about their surroundings, send messages, make phone calls, and even translate languages in real time. The AI assistant can process both visual and audio input and operate even while the user is offline.

At present, live translation features are available for English, French, Italian, and Spanish, though Meta has not yet added support for Indian languages. The glasses also integrate with music apps such as Spotify, Apple Music, Amazon Music, and Shazam for on-the-go audio playback.

Meta says it has sold around 2 million pairs globally since the smart glasses first launched in 2023. The debut in India marks a major expansion into a key global market, though support for regional language features remains a limitation for now.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Click To Do and Settings agent bring AI to Windows 11 beta

Microsoft has rolled out Windows 11 Insider Preview Build 26120.3964 to the Beta Channel, marking the official start of the 24H2 version. Available to Insider users starting this week, the update delivers key AI-driven enhancements—most notably, a new agent built into the Settings app and upgraded text actions.

The AI agent in Settings allows users to interact using natural language instead of simple keywords. Microsoft says users can ask questions like ‘how to control my PC by voice’ or ‘my mouse pointer is too small’ to receive personalised help navigating and adjusting system settings.

Initially, the feature is limited to Copilot+ PCs powered by Snapdragon processors and set to English as the primary language. Microsoft plans to expand support to AMD and Intel devices in the near future.

The update also introduces a new FAQs section on the About page under Settings > System. The company says this addition will help users better understand their device’s configuration, performance, and compatibility.

Microsoft is also enhancing its ‘Click To Do’ feature. On Copilot+ PCs with AMD or Intel chips, users can now highlight text (10 words or more) and press Win + Click or Win + Q to access quick AI actions like Summarise, Rewrite, or Create a bulleted list.

These tools are powered by Phi Silica, an on-device small language model. The features require the system language to be English and the user to be signed in with a Microsoft account.

Microsoft notes that Rewrite is temporarily unavailable for users with French or Spanish as their default language but will return in a future update.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Bitcoin’s political puppeteers: From code to clout

Bitcoin was once seen as the cornerstone of a financial utopia — immune to political control, free from traditional banking systems, and governed solely by blockchain protocols. For a while, that dream felt real — and we lived it.

Today, things have changed. The whole crypto market has become increasingly sensitive to political influence, the actions of crypto whales, and rising global tensions.

While financial markets are expected to respond to global developments, Bitcoin’s price volatility has started to reflect something more concerning. Instead of being driven primarily by innovation or organic adoption, BTC price movements are increasingly shaped by media exposure and the strategic trades by influential figures.

In this shifting ecosystem, manipulation and concentrated influence are gradually undermining the core ideals of decentralisation and financial autonomy. Is this really the revolution we were promised? 

Trump’s family growing grip on the crypto market

Donald Trump has not always been a crypto fan. Once critical of Bitcoin, he is now positioning himself as a pro-crypto leader. It is a shift driven by opportunity — not just political, but financial. Trump understands that supporting digital assets could help the USA become a global crypto hub. But it also aligns perfectly with his reputation as a businessman first, politician second. 

The issue lies in the outsized influence his words now have in the crypto space. A single post on social media like X or Truth can send Bitcoin’s price up or down. Whether he is praising crypto or denying personal gain, the market reacts instantly. 

His sons, Donald Trump Jr. and Eric Trump are also active — often promoting the narrative that banks are obsolete and crypto is the future. They frequently make suggestive remarks about market trends. At times, they even imply where investors should put their money — all while staying within legal limits. Still, this pattern subtly steers market sentiment, raising concerns about coordinated influence and the deliberate shaping of market trends.

The launch of politically themed meme coins like $TRUMP and $MELANIA added fuel to the fire. These coins sparked massive rallies — and equally dramatic crashes. In fact, Bitcoin’s all-time high was followed by a sharp fall, partially triggered by the hype and eventual dump around these tokens.

Investigations now suggest insider activity. One wallet made $39 million in just 12 hours after buying $MELANIA before it was even announced. Meanwhile, $TRUMP coin insiders moved $4.6 million in USDC right before the major token unlock.

While technically legal, these actions raise serious ethical concerns. Also, 80% of its supply is controlled by insiders — including Donald Trump himself. It points to a clear pattern of influence, where strategic actions are being used to shape market movements and drive profits for a select few.

What we are seeing is the unprecedented impact of a single family. The combination of political clout and financial ambition is reshaping crypto sentiment, and Bitcoin is reflecting the shift as well. It is no longer subtle — and it is certainly troubling. Crypto is supposed to be free from central influence — yet right now, it bends under the weight of a single name.

Whales and the Michael Saylor effect 

Beyond politics, crypto whales are playing their part in manipulating Bitcoin’s movements. They can cause major price swings by buying or selling in bulk. 

One of the most influential is Michael Saylor, co-founder of Strategy. His company holds approximately 555,450 BTC and is still buying. Every time he announces a new purchase, Bitcoin prices spike. Traders monitor his every move — his tweets are treated like trading signals. 

But Saylor has bigger plans. He once said he could become a Bitcoin bank — a statement that sparked backlash. What is particularly striking is that a businessman who has supported Bitcoin’s decentralised nature from the beginning is now acting in ways that appear to contradict it. Bitcoin was designed to avoid central control — not to be dominated by one player, no matter how bullish. When too much BTC ends up concentrated in one place, the autonomous promise begins to crack. 

Market trust is shifting from code to individuals — and that is risky.

Global tensions as a Bitcoin barometer

Bitcoin does not just respond to tweets anymore. Global tensions have made it a geopolitical asset — a barometer of financial anxiety. 

Recent US tariffs, particularly on Chinese mining equipment, have raised mining costs. Tariffs also disrupted the supply chain for mining rigs, slowing down expansion and affecting hash rates.

At the same time, when the US exempted tech products like iPhones and laptops from tariffs, Bitcoin surged — reaching $86,000. It shows how trade policy and tech pressure are now directly linked to Bitcoin price action. 

Yet, there always seems to be a push-and-pull dynamic at play — not necessarily coordinated, but clearly driven by short-term momentum and opportunistic interests.

It is where irony lies — Bitcoin was built to be apolitical. But today, it is tightly tied to global politics. Its price now swings in response to elections, sanctions, and international conflicts — the very forces it was meant to bypass. What was once a decentralised alternative to traditional finance is becoming a mirror of the same systems it sought to disrupt. 

Bitcoin: from decentralised dream to politically-driven reality 

Bitcoin is no longer moved by natural market fundamentals alone. It dances to the tune of political tweets, whale decisions, and global conflicts. A decentralised dream now faces a centralised reality.

It all started when governments and financial institutions began taking an active interest in Bitcoin and the broader cryptocurrency market. While mainstream adoption was essential for legitimising digital assets, that level of attention came with strings attached — most notably, external influence.

What was once an alternative movement powered by decentralised ideals has gradually attracted the gaze of political leaders, regulators, and corporate giants. The tale of two sides of the sword: the promise of legitimacy, tempered by the risk of losing the system’s independence. 

In this environment, the absence of central control and the self-governing nature of the system are becoming increasingly symbolic. The market reacts not just to algorithms or adoption metrics, but also to the opinions and actions of a powerful few â€” raising concerns about market manipulation, unequal access, and the long-term health of crypto’s founding vision. Is that really a non-centralised structure?

Crypto was meant to free us from financial gatekeepers. But if Bitcoin can be shaken by one man’s post on a social network, we must ask: can it still considered free? 

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Mayor Adams pushes for New York’s rise as a crypto hub

New York City Mayor Eric Adams has reaffirmed ambition to turn the city into the world’s leading crypto capital. At a press conference ahead of the 20 May NYC Crypto Summit, Adams highlighted New York’s growing blockchain sector and its role in boosting financial inclusion.

The mayor appeared alongside leading tech figures, including June Ou from Figure Firm and Richard Hecker from Traction and Scale. Adams pointed to his 2022 move to convert his first three payslips into Bitcoin and Ethereum as proof of his early support for crypto.

He also positioned New York as a serious competitor to Silicon Valley when it comes to innovation and startup growth in the crypto space.

Adams said the summit would foster public-private cooperation to shape digital assets through balanced rules, focusing on long-term blockchain use over short-lived trends like memecoins.

Without naming them directly, his remarks may also appeal to crypto super PACs, as he prepares for a possible independent re-election campaign following the dismissal of a federal investigation.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot! 

Masked cybercrime groups rise as attacks escalate worldwide

Cybercrime is thriving like never before, with hackers launching attacks ranging from absurd ransomware demands of $1 trillion to large-scale theft of personal data. Despite efforts from Microsoft, Google and even the FBI, these threat actors continue to outpace defences.

A new report by Group-IB has analysed over 1,500 cybercrime investigations to uncover the most active and dangerous hacker groups operating today.

Rather than fading away after arrests or infighting, many cybercriminal gangs are re-emerging stronger than before.

Group-IB’s May 2025 report highlights a troubling increase in key attack types across 2024 — phishing rose by 22%, ransomware leak sites by 10%, and APT (advanced persistent threat) attacks by 58%. The United States was the most affected country by ransomware activity.

At the top of the cybercriminal hierarchy now sits RansomHub, a ransomware-as-a-service group that emerged from the collapsed ALPHV group and has already overtaken long-established players in attack numbers.

Behind it is GoldFactory, which developed the first iOS banking trojan and exploited facial recognition data. Lazarus, a well-known North Korean state-linked group, also remains highly active under multiple aliases.

Meanwhile, politically driven hacktivist group NoName057(16) has been targeting European institutions using denial-of-service attacks.

With jurisdictional gaps allowing cybercriminals to flourish, these masked hackers remain a growing concern for global cybersecurity, especially as new threat actors emerge from the shadows instead of disappearing for good.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US scraps Biden AI chip export rule

The US Department of Commerce has scrapped the Biden administration’s Artificial Intelligence Diffusion Rule just days before it was due to come into force.

Introduced in January, the rule would have restricted the export of US-made AI chips to many countries for the first time, while reinforcing existing controls.

Rather than enforcing broad restrictions, the Department now intends to pursue direct negotiations with individual countries.

The original rule divided the world into three tiers, with countries like Japan and South Korea spared restrictions, middle-tier countries such as Mexico and Portugal facing new limits, and nations like China and Russia subject to tighter controls.

According to Bloomberg, a replacement rule is expected at a later date.

Instead of issuing immediate new regulations, officials released industry guidance warning companies against using Huawei’s Ascend AI chips and highlighted the risks of allowing US chips to train AI in China.

Secretary Jeffrey Kessler criticised the Biden-era policy, promising a ‘bold, inclusive’ AI strategy that works with allies while limiting access for adversaries.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

EU prolongs sanctions for cyberattackers until 2026

The EU Council has extended its sanctions on cyberattacks until May 18, 2026, with the legal framework for enforcing these measures now lasting until 2028. The sanctions target individuals and institutions involved in cyberattacks that pose a significant threat to the EU and its members.

The extended measures will allow the EU to impose restrictions on those responsible for cyberattacks, including freezing assets and blocking access to financial resources.

These actions may also apply to attacks against third countries or international organisations, if necessary for EU foreign and security policy objectives.

At present, sanctions are in place against 17 individuals and four institutions. The EU’s decision highlights its ongoing commitment to safeguarding its digital infrastructure and maintaining its foreign policy goals through legal actions against cyber threats.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

US Copyright Office avoids clear decision on AI and fair use

The US Copyright Office has stopped short of deciding whether AI companies can legally use copyrighted material to train their systems under fair use.

Its newly released report acknowledges that some uses—such as non-commercial research—may qualify, while others, like replicating expressive works from pirated content to produce market-ready AI output, likely won’t.

Rather than offering a definitive answer, the Office said such cases must be assessed by the courts, not through a universal standard.

The latest report is the third in a series aimed at guiding how copyright law applies to AI-generated content. It reiterates that works entirely created by AI cannot be copyrighted, but human-edited outputs might still qualify.

The 108-page document focuses heavily on whether AI training methods transform content enough to justify legal protection, and whether they harm creators’ livelihoods through lost sales or diluted markets.

Instead of setting new policy, the Office highlights existing legal principles, especially the four factors of fair use: the purpose, the nature of the work, the amount used, and the impact on the original market.

It notes that AI-generated content can sometimes alter original works meaningfully, but when styles or outputs closely resemble protected material, legal risks remain. Tools like content filters are seen as helpful in preventing infringement, even though they’re not always reliable.

The timing of the report has been overshadowed by political turmoil. President Donald Trump reportedly dismissed both the Librarian of Congress and the head of the Copyright Office days before the report’s release.

Meanwhile, creators continue urging the government not to permit fair use in AI training, arguing it threatens the value of original work. The debate is now expected to unfold further in courtrooms instead of regulatory offices.

Would you like to learn more about AI, tech and digital diplomacy? If so, ask our Diplo chatbot!

Diplo chatbot can make mistakes. Consider checking important information.