$1M bet ChatGPT won’t lead to AGI, Apple’s intelligent AI use, AI millionaires surge: AI Eye

14 June 2024

$1M prize to debunk hype over AGI, Apple Intelligence is modest but clever, Google is still stuck on that stupid ‘pizza glue’ answer. AI Eye.  

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Hyperliquid backs 24/7 crypto trading in CFTC comments submission  
Hyperliquid backs 24/7 crypto trading in CFTC comments submission  

Hyperliquid, a decentralized perpetuals exchange operating on its own layer-1 blockchain, has submitted formal comments on 24/7 derivatives trading to the United States Commodity Futures Trading Commission (CFTC).In a May 23 X post, Hyperliquid Labs announced that it has “submitted two comment letters to the [CFTC] in response to its recent Requests for Comment on perpetual derivatives and 24/7 trading.” The team behind the decentralized exchange (DEX) added:“We commend the CFTC for its proactive engagement on these topics, understanding of which is fundamental to the evolution of global markets.”Hyperliquid stated that it is committed to the advancement of the decentralized finance (DeFi) space. The team also claimed that its implementation “exemplifies how core DeFi principles can be put into practice to enhance market efficiency, market integrity, and user protection.”Source: HyperliquidRelated: CFTC exodus: Fourth commissioner to depart ‘later this year’CFTC’s 24/7 derivatives plansHyperliquid’s remarks follow CFTC Commissioner Summer Mersinger recently saying that crypto perpetual futures contracts could receive regulatory approval in the US “very soon.” Perpetual crypto futures “can come to market now,” she said.“We’re seeing some applications, and I believe we’ll see some of those products trading live very soon,” Mersinger said. She also added that it would be “great to get that trading back onshore in the United States.” Perpetual futures contracts are a type of derivative that allows traders to speculate on the price of a crypto asset without owning it, similar to traditional futures, but with no expiration date. Such contracts remain open indefinitely and are kept in line with the spot market price using a funding rate mechanism, where payments are exchanged between long and short positions at regular intervals.Related: CFTC commissioner will step down to become Blockchain Association CEOCrypto derivatives are a busy areaThe crypto derivatives market has recently been swarming with announcements of product launches, acquisitions and regulatory developments. Coinbase CEO Brian Armstrong recently said the exchange will continue to look for merger and acquisition opportunities after acquiring crypto derivatives platform Deribit.Armstrong’s remarks followed Coinbase’s agreement to acquire Deribit, one of the world’s biggest crypto derivatives trading platforms. Europe is seeing just as much hustle in the crypto derivatives industry as the Americas are.Major crypto exchange Gemini has also recently received regulatory approval to expand crypto derivatives trading across Europe. Elsewhere, DeFi platform Synthetix will also venture further into crypto derivatives, with plans to re-acquire the crypto options platform Derive.Magazine: TradFi is building Ethereum L2s to tokenize trillions in RWAs: Inside story

Why Tether refuses to comply with MiCA  
Why Tether refuses to comply with MiCA  

Is Tether MiCA compliant? The EU’s new Markets in Crypto-Assets regulation, better known as MiCA, is the first major attempt by a global economic power to create clear, region-wide rules for the crypto space, and stablecoins are a big focus.MiCA mandates best practices. If a stablecoin is going to be traded in the EU, its issuer has to follow some stringent rules:1. You need a licenseTo issue a stablecoin in Europe, you must become a fully authorized electronic money institution (EMI). That’s the same kind of license traditional fintechs need to offer e-wallets or prepaid cards. It’s not cheap and it’s not quick. 2. Most of your reserves have to sit in European banksThis is one of the most controversial parts of MiCA. If you issue a “significant” stablecoin — and Tether’s USDT certainly qualifies — at least 60% of your reserves must be held in EU-based banks. The logic is to keep the financial system safe. 3. Full transparency is non-negotiableMiCA requires detailed, regular disclosures. Issuers have to publish a white paper and provide updates on their reserves, audits and operational changes. This level of reporting is new territory for some stablecoins, especially those that have historically avoided public scrutiny.4. Non-compliant coins are getting delistedIf a token doesn’t comply, it won’t be tradable on regulated EU platforms. Binance, for example, has delisted USDT trading pairs for users in the European Economic Area (EEA). Other exchanges are following suit.The European Securities and Markets Authority (ESMA) clarified that people in Europe can still hold or transfer USDT, but it can’t be offered to the public or listed on official venues. In other words, you might still have USDT in your wallet, but good luck trying to swap it on a regulated platform. Key reasons why Tether rejects MiCA regulations Tether is unique in that it has explained why it wants nothing to do with MiCA regulations. The company’s leadership, especially CEO Paolo Ardoino, has been pretty vocal about what they see as serious flaws in the regulation, from financial risks to privacy concerns to the bigger picture of who stablecoins are really for.1. The banking rule could backfireOne of MiCA’s most talked-about rules says that “significant” stablecoins — like Tether’s USDt (USDT) — must keep at least 60% of their reserves in European banks. The idea is to make stablecoins safer and more transparent. But Ardoino sees it differently.He’s warned that this could create new problems, forcing stablecoin issuers to rely so heavily on traditional banks could make the whole system more fragile. After all, if there’s a wave of redemptions and those banks don’t have enough liquidity to keep up, we’d witness a struggling bank and a stablecoin crisis simultaneously.Instead, Tether prefers to keep most of its reserves in US Treasurys, assets it says are liquid, low-risk and much easier to redeem quickly if needed.2. They don’t trust the digital euroTether also has a broader issue with the direction Europe is heading, especially regarding a digital euro. Ardoino has openly criticized it, raising alarms about privacy. He has argued that a centrally controlled digital currency could be used to track how people spend their money, and even control or restrict transactions if someone falls out of favor with the system.Privacy advocates have echoed similar concerns. While the European Central Bank insists that privacy is a top priority (with features like offline payments), Tether isn’t convinced. In their eyes, putting that much financial power in the hands of one institution is asking for trouble.3. Tether’s users aren’t in Brussels. They’re in Brazil, Turkey and NigeriaAt the heart of it, Tether sees itself as a lifeline for people in countries dealing with inflation, unstable banking systems and limited access to dollars. These are places like Turkey, Argentina and Nigeria, where USDT is often more useful than the local currency.MiCA, with all its licensing hoops and reserve mandates, would require Tether to shift focus and invest heavily in meeting EU-specific standards. That’s something the company says it’s not willing to do, not at the expense of the markets it sees as most in need of financial tools like USDT.Did you know? Turkey ranks among the top countries for cryptocurrency adoption, with 16% of its population engaged in crypto activities. This high adoption rate is largely driven by the devaluation of the Turkish lira and economic instability, prompting citizens to seek alternatives like stablecoins to preserve their purchasing power. What happens when Tether doesn’t comply with MiCA Tether’s decision to skip MiCA didn’t exactly fly under the radar. It’s already having real consequences, especially for exchanges and users in Europe.Exchanges are dropping USDTBig names like Binance and Kraken didn’t wait around. To stay on the right side of EU regulators, they’ve already delisted USDT trading pairs for users in the European Economic Area. Binance had removed them by the end of March 2025. Kraken followed close behind, removing not just USDT but also other non-compliant stablecoins like EURT and PayPal’s PYUSD.Users are left with fewer optionsIf you’re in Europe and holding USDT, you’re not totally out of luck; you can still withdraw or swap it on certain platforms. But you won’t be trading it on major exchanges anymore. That’s already pushing users toward alternatives like USDC and EURC, which are fully MiCA-compliant and widely supported.Even major crypto payment processors are pulling support, leaving users with fewer options for spending their crypto directly.A hit to liquidity? Probably.Pulling USDT from European exchanges could make the markets a bit shakier. Less liquidity, wider spreads and more volatility during big price moves are all on the table. Some traders will adjust quickly. Others? Not so much.Did you know? Tether (USDT) is the most traded cryptocurrency globally, surpassing even Bitcoin in daily volume. In 2024, it facilitated over $20.6 trillion in transactions and boasts a user base exceeding 400 million worldwide. Tether vs MiCA regulation Tether may be out of sync with the EU, but it’s far from retreating. If anything, the company is doubling down elsewhere, looking for friendlier ground and broader horizons.Firstly, Tether’s picked El Salvador as its new base, a country that has fully embraced crypto. After getting a digital asset service provider license, the company is setting up a real headquarters there. Ardoino and other top execs are making the move too.Moreover, after banking over $5 billion in profits in early 2024, Tether is putting its capital to work:AI: Through its venture arm, Tether Evo, the company has picked up stakes in firms like Northern Data Group and Blackrock Neurotech. Tether has also launched Tether AI, an open-source, decentralized AI platform designed to operate on any device without centralized servers or API keys. The goal is to use AI to boost operations and maybe build some new tools along the way.Infrastructure and AgTech: Tether invested in Adecoagro, a company focused on sustainable farming and renewable energy. It’s a surprising move, but it fits Tether’s bigger strategy of backing real-world, resilient systems.Media and beyond: There are also signs Tether wants a footprint in content and communications, signaling it’s thinking far beyond crypto alone. Tether’s MiCA exit highlights crypto’s global regulatory chaos Tether walking away from MiCA is a snapshot of a much bigger issue in crypto: How hard it is to build a business in a world where every jurisdiction plays by its own rulebook.The classic game of regulatory arbitrageThis isn’t Tether’s first rodeo when it comes to navigating regulations. Like many crypto companies, they’ve mastered the art of regulatory arbitrage, finding the friendliest jurisdiction and setting up shop there. Europe brings in strict rules? Fine, Tether sets up in El Salvador, where crypto is welcomed with open arms.However, it does raise questions. If big players can simply move jurisdictions to dodge regulations, how effective are those rules in the first place? And does that leave retail users protected or just further confused?A crypto world that’s all over the mapThe bigger issue is that the global regulatory landscape is incredibly fragmented. Europe wants full compliance, transparency and reserve mandates. The US is still sending mixed signals. Asia is split; Hong Kong is pro-crypto, while China stays cold. Hong Kong has also passed the Stablecoin Bill to license fiat-backed issuers and boost its Web3 ambitions. Meanwhile, Latin America is embracing crypto as a tool for financial access.For companies, it’s a mess. You can’t build for one global market; you must constantly adapt, restructure or pull out entirely. For users, it creates massive gaps in access. A coin available in one country might be inaccessible in another just because of local policy.As a final thought: Tether’s resistance to MiCA seems to be more than just a protest against red tape. It’s making a bet that crypto’s future will be shaped outside Brussels, not inside it.

Crypto perp futures coming ‘very soon,’ says CFTC’s Mersinger  
Crypto perp futures coming ‘very soon,’ says CFTC’s Mersinger  

Crypto perpetual futures contracts could receive regulatory approval in the US “very soon,” says outgoing Commodities and Futures Trading Commission Commissioner Summer Mersinger.Perpetual crypto futures “can come to market now,” Mersinger told Bloomberg TV on May 22. “We’re seeing some applications, and I believe we’ll see some of those products trading live very soon,” she said, adding it would be “great to get that trading back onshore in the United States.” Mersinger, who will leave the CFTC at the end of May, said having crypto derivatives trading and regulated in the US would be a “really good thing for these markets and would be really beneficial to the industry broadly.”Crypto perpetual futures are derivative contracts that allow traders to speculate on the price of cryptocurrencies without actually owning them. Unlike traditional futures contracts that have expiration dates, perpetual futures can be held indefinitely. They can also be traded with high leverage.Summer Mersinger on Bloomberg TV. Source: YouTubeCrypto perpetuals are not currently permitted in the US and are traded on large offshore centralized exchanges, such as Binance, OKX, and Bybit. Binance is the largest with almost $95 billion in perpetual trading volume per day, according to CoinGecko. It offers over 500 crypto perpetual pairs with up to 125x leverage.Related: BitMEX CEO explains how perpetual swaps test altcoin valueMersinger said that the recent procedural vote to move forward the GENIUS stablecoin bill signifies “this asset class is clearly here to stay.” “We really are going to make the United States the forefront of economic power that we can see from these tokens and this asset class.” Mersinger leaving the CFTCAt the end of May, Mersinger will leave the CFTC to work at the Blockchain Association, a trade group with over 100 members that represents the crypto industry and economy. On May 14, the Blockchain Association announced that its current CEO, Kristin Smith, would step down and Mersinger would assume the role on June 2. “We have a very strong incoming [CFTC] chairman who has a great voice for the crypto industry and will be a real advocate for the industry and the agency at large,” she said, adding that she hopes to contribute more to the crypto industry through her new position. Magazine: Crypto scam hub expose stunt goes viral, Kakao detects 70K scam apps: Asia Express

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