BNY Mellon, one of the largest US banks, is moving closer to offering custody services for Bitcoin and Ether exchange-traded fund (ETF) clients. This follows a decision by the US Securities and Exchange Commission (SEC) to ease requirements surrounding Staff Accounting Bulletin (SAB) 121, which had imposed strict guidelines for companies holding client Bitcoin.
SAB 121, introduced in 2022, required firms to list Bitcoin assets as liabilities, causing frustration in the industry. However, after reviewing the matter, the SEC’s Office of the Chief Accountant determined that BNY Mellon did not need to comply with SAB 121, allowing the bank to advance its crypto services.
Despite this progress, BNY Mellon still needs additional regulatory approval to offer these services at scale. The bank has stated that it continues to work with its banking regulators to fully roll out its custody offerings for crypto ETFs.
Julian Assange, the former Wikileaks editor-in-chief, has secured a plea deal, with his sentence commuted to time served. He is now set to travel to Saipan before returning to Australia. Despite his release, the financial burden remains, with his fiancée, Stella Assange, disclosing that the cost of his journey to freedom is estimated at $520,000. The family is urgently appealing for funds to cover travel and recovery expenses.
To help raise these funds, a BTCPay Server has been set up, enabling donations through Bitcoin or the Lightning Network. Assange’s brother, Gabriel, confirmed the platform, allowing secure, decentralised contributions. Julian’s connection to Bitcoin is long-standing, having been part of the cryptocurrency’s history, including discussions with its creator, Satoshi Nakamoto, regarding its use for Wikileaks when PayPal froze their accounts.
As Assange embarks on the next chapter of his life, the Bitcoin community continues to rally behind him, with a recent donation of 8 Bitcoins (around $500,000) further showcasing the role of cryptocurrency in supporting his cause.
Spotify is expanding its AI Playlist tool, which helps premium users create personalised playlists using generative AI, to four new markets, including the United States and Canada. Currently in beta, the feature allows subscribers to tailor their playlists with additional text prompts, enhancing the listening experience.
Launched earlier in the United Kingdom and Australia, AI Playlist is now being extended to Ireland and New Zealand as part of Spotify’s strategy to attract new subscribers. The company aims to differentiate itself from growing competition with Apple and Amazon by integrating more AI-driven features into its platform.
While the tool offers users customisable music choices, it is currently limited to music-related prompts and will not respond to queries about current events or brands. Spotify also provides other AI-powered tools like ‘daylist’, a playlist that updates daily, and ‘AI DJ’, which recommends music based on individual listening habits.
Spotify‘s paying subscribers rose 12% year-on-year, reaching 246 million in the second quarter. The company’s continued focus on AI innovations reflects its commitment to offering unique features to its global user base.
Truflation, a blockchain-based inflation data platform, has confirmed falling victim to a malware attack. The project reported detecting abnormal activity on 25 September, which led to an estimated loss of up to $5.2 million. Blockchain analysts have tracked the losses from Truflation’s treasury and personal wallets on Ethereum, with additional losses spread across seven other blockchains.
The team is now working with law enforcement and industry partners to resolve the issue. They have also reached out to the hacker, seeking negotiation, while offering rewards to white-hat hackers who can assist. Despite the breach, Truflation has reassured its customers that their funds and staking operations remain secure.
Truflation’s token, TRUF, fell by 15.6% following the incident, though it has since partly recovered. Truflation provides real-time economic data and recently launched a marketplace that tracks commodity indexes such as sugar, petroleum, and wheat.
The United States Securities and Exchange Commission (SEC) has delayed its decision on approving options trading for spot Ethereum ETFs. The regulator stated the need for more time to assess the proposed rule changes for Nasdaq ISE LLC and NYSE American LLC to list Ethereum ETF options. BlackRock, Bitwise, and Grayscale are among those awaiting approval for their respective Ethereum funds, with a new decision deadline set for November 2024.
The SEC’s cautious approach towards crypto-related Exchange-Traded Products (ETPs) is clear, as it has extended the review process for Ethereum ETFs. This move comes as interest in Ethereum ETFs has declined, with significant outflows exceeding $620 million in recent weeks. By contrast, Bitcoin ETFs have enjoyed strong inflows, with over $17 billion invested since their launch.
Meanwhile, the SEC recently approved options trading for BlackRock’s Bitcoin ETF after a lengthy review process. This approval, along with BlackRock’s updates on Bitcoin ETF withdrawals, underscores the ongoing regulatory scrutiny in the crypto sector, as the SEC addresses concerns over market manipulation and protection for investors.
OpenAI’s board is considering compensating CEO Sam Altman with equity, though no decision has been made, according to board chair Bret Taylor. The idea emerged as part of a broader conversation on restructuring the company’s core business into a for-profit benefit corporation. Altman holds no stake in OpenAI despite co-founding the organisation in 2015. His initial decision to forgo equity was rooted in the need for a majority of disinterested directors on the board.
The restructuring plan suggests that Altman could finally receive equity in the new for-profit entity. However, this transition comes amid sudden changes at the company, including the departure of several key executives. Speaking at a conference in Italy, Altman dismissed any connection between these exits and the ongoing discussions about the corporate restructuring.
As OpenAI navigates this pivotal transformation, it is also amid negotiations to raise $6.5 billion, with support expected from major players such as Microsoft, Nvidia, and Apple. The company’s potential valuation of $150 billion hinges on successfully executing its restructuring, which may include lifting a cap on investor returns.
Why does it matter?
Once restructured, the for-profit entity would no longer be under the control of the non-profit board that has overseen OpenAI since its inception. However, the non-profit organisation will continue to exist, holding a minority stake in the newly formed for-profit company. The shift signals a significant evolution for the AI giant as it seeks to attract further investment and scale its ambitions.
The US Federal Trade Commission (FTC) has cracked down on five companies for deceptive use of AI. Three cases involved businesses falsely claiming to help consumers generate passive income through e-commerce. The FTC also reached settlements with DoNotPay and Rytr, two companies accused of misleading consumers with their AI tools. DoNotPay, which marketed automated legal services, agreed to a $193,000 settlement and will notify customers of the tool’s limitations, while Rytr faced criticism for allowing users to create fake product reviews through its AI writing feature.
FTC Chair Lina M. Khan stressed that AI tools must comply with existing laws, making it clear that deceiving or misleading consumers with AI is illegal. Despite not admitting wrongdoing, both Rytr and DoNotPay settled with the FTC. Rytr agreed to discontinue its review-generating feature, used to create fake product reviews, while DoNotPay accepted a settlement without admitting fault.
The FTC’s actions have sparked internal debate on how to regulate AI. While all five commissioners supported cracking down on false AI claims, the two Republican commissioners raised concerns about the agency’s authority in the Rytr case. This division highlights differing views within the FTC on the scope of its regulatory powers when addressing AI-related issues.
PayPal is enhancing its cryptocurrency offerings to include business account holders, enabling them to use digital assets in everyday transactions. The new service, however, will not be available for businesses in New York at the launch. Since 2020, PayPal and its subsidiary Venmo have allowed consumers to buy, sell, and hold cryptocurrencies like Bitcoin and Ethereum. Now, with the demand from merchants for similar access, PayPal is facilitating transfers of cryptocurrencies to external wallets, allowing businesses to send and receive digital tokens on blockchain networks.
This significant development means that US merchants can now handle digital currencies much like traditional money, with PayPal acting as a bridge between conventional finance and the expanding world of cryptocurrency. In August 2023, PayPal took a further step by launching its stablecoin, PayPal USD, which debuted on the Ethereum blockchain. Backed by US dollar deposits and short-term Treasuries, PayPal USD has already seen substantial usage, particularly after its expansion to the Solana blockchain.
Since May, the weekly transaction volume of PayPal USD has surged to over $500 million, compared to $150 million previously. Currently, the total supply of PayPal USD across Solana and Ethereum has reached $534 million, with a distribution of 74% on Ethereum and 25% on Solana. With these advancements, PayPal is poised to significantly influence how businesses integrate cryptocurrency into their operations.
At its annual Connect conference, Meta Platforms unveiled its first working prototype of augmented-reality glasses called Orion. CEO Mark Zuckerberg described the chunky black glasses as a glimpse into a future where virtual and physical worlds merge seamlessly, referring to them as a “time machine” that could transform user interactions. The announcement also featured improved AI chatbot capabilities and a new Quest mixed-reality headset, contributing to a record closing high for Meta shares at $568.31.
The Orion glasses, made from magnesium alloy and powered by custom silicon designed by Meta, will include features like hand-tracking, voice controls, and a wrist-based neural interface. Meta plans to refine the glasses to make them smaller and more affordable for a projected consumer launch in 2027. However, previous attempts at AR by major tech companies have often encountered challenges. Analysts recognise Meta’s goal of making augmented reality accessible, but public scepticism about AI technology continues to be a significant barrier.
Although Zuckerberg did not demonstrate the glasses’ features live, a video showcased testers, including Nvidia CEO Jensen Huang, interacting with the device. Meta’s existing Ray-Ban smart glasses gained popularity after the introduction of an AI assistant, which will soon allow users to scan QR codes and stream music using voice commands. Future updates for these glasses are set to include real-time language translation and video generation capabilities.
Alongside its AR announcements, Meta unveiled several AI updates, including improved audio responses for its digital assistant, Meta AI, which can now mimic celebrity voices. With over 400 million monthly users, Meta is heavily investing in AI and AR technologies, anticipating record capital expenses of $37 billion to $40 billion for 2024. However, despite these investments, the Reality Labs division reported substantial losses of $8.3 billion in the first half of this year.
Italy‘s antitrust agency has launched an investigation into a Dublin-based company that runs Shein’s website and app over potentially deceptive environmental claims. The investigation targets Infinite Styles Services Co. Limited, accusing Shein of using unclear and misleading language to present its products as environmentally sustainable. It specifically questions claims related to Shein’s ‘evoluSHEIN’ collection, which may mislead consumers about the use of eco-friendly fabrics and the recyclability of its clothing.
Shein stated that it is prepared to cooperate with Italian authorities and provide necessary information fully. This investigation is part of a larger European push to combat ‘greenwashing,’ with the EU enforcing new rules that require companies to substantiate their environmental claims with clear evidence. Italy’s antitrust body also highlighted inconsistencies between Shein’s sustainability promises and the rise in greenhouse gas emissions the company reported in 2022 and 2023.
The case reflects a wider trend as European regulators intensify scrutiny of companies making environmental claims. Under Italy’s consumer protection laws, companies found guilty of misleading practices could face fines ranging from 5,000 to 10 million euros.
