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MM has a couple of exclusive new features about cryptography and artificial intelligence to start the day.
First is a look at Sen. Elizabeth WarrenThe latest crypto target of: the revolving door between the worlds of national security and digital assets.
MM reported last month about how the The crypto industry is wielding a small army. from former national security, defense and law enforcement officials in response to growing scrutiny over the role digital currencies play in the financing of terrorism and other financial crimes.
I caught the attention from Warren, who has been rallying lawmakers to strengthen anti-money laundering safeguards in the cryptocurrency market. In new letters sent Monday, she asked Coinbasehe Blockchain Association and Coin Center about the extent to which they employ former military and civilian officials, as well as former members of Congress, plus details about the work they have been doing. He cited Coinbases' recruitment of the former Secretary of Defense. Mark EsperSen form. Pat Toomey and former representatives Tim Ryan and Sean Patrick Maloney, who has also been nominated to serve as the United States representative to the OECD. They serve in the company. Global Advisory Council.
“This abuse of the revolving door is appalling and reveals that the cryptocurrency industry is spending millions to give itself a veneer of legitimacy while fighting tooth and nail to thwart common sense rules designed to restrict the use of cryptocurrencies for financing.” of terrorism, rules that could reduce the profits of crypto companies,” Warren said. "It also reveals significant gaps in the country's ethics laws."
CEO of the Blockchain Association Christina Smith He said in response that "people are attracted to working in the crypto industry because they value freedom, the sovereignty of the individual, and permissionless innovation." Head of US Policy at Coinbase kara calvert He said the national security and law enforcement experts the crypto exchange employs "do not deserve to be defamed as they work to keep our nation strong and secure."
"Engaging like-minded experts to advocate against legislative proposals that one sincerely believes are unconstitutional and detrimental to the nation's well-being does not constitute 'undermining bipartisan efforts in Congress,'" Coin Center executive director. jerry brito he said, citing Warren's letter. “Rather, it is the exercise of the fundamental right to freely associate and petition the government.”
FollowingMM takes a first look at a new bipartisan Senate push to address the potential financial risks of AI.
Sens. Mark Warner and John Kennedy are introduce legislation That would require the Financial Stability Oversight Council (a Treasury-led panel of senior regulators) to coordinate a response to threats to market stability posed by AI, such as the use of deepfakes, and recommend ways to close loopholes. regulatory gaps. The bill would also allow the SEC to impose triple penalties for market manipulation and fraud involving AI, and would give credit unions and housing regulators authority to supervise AI service providers.
Kennedy, Republican of Louisiana who serves on Senate Banking with Warner, said the bill would "help ensure that AI threats do not put Americans' investments and retirement dreams at risk."
Warner has emerged as one of the most outspoken members of Congress when it comes to the AI risks looming on Wall Street. He has been mocking the legislation for weeks. The Virginia Democrat, former executive and venture capitalist, said at a financial regulation conference Last month he was surprised by the industry's lack of urgency in addressing the potential dangers of AI.
"AI has tremendous potential, but also enormous disruptive power in a variety of fields and industries, perhaps none more so than our financial markets," he said in a statement about his bill. "Now is the time to address those vulnerabilities."
It's Tuesday — MM would love to hear from you this week before the holidays. Send tips to [email protected].
Census Bureau residential construction data for November released at 8:30 a.m.
Another Fed official signals cuts — President of the San Francisco Federal Reserve Maria Dalywho will become an FOMC voter next year, told the WSJ that it is appropriate to consider cutting rates in 2024. Daly said he is watching the effect that tight monetary policy has on the labor market.
"We have to look to the future and make sure we're not giving people price stability but taking away jobs," he said.
President of the Chicago Federal Reserve Austan Goolsbee in a CNBC interview rejected the idea that the Federal Reserve is actively planning a series of rate cuts. He said the market may have misunderstood the central bank's intended message last week.
“It's not what you say or what the president says. It’s what they heard and what they wanted to hear,” he said. "I was a little confused: was the market just imputing, is this what we want them to say?"
Apple struggles to rescue watches after patent dispute — According to Bloomberg, Apple engineers are racing to implement solutions that will allow the company to avoid a ban on sales of its watches in the United States that will take effect on December 25. It's a $17 billion business.
Nippon Steel to buy US Steel — AP reports that US Steel, the historic Pittsburgh steel producer, has agreed to be acquired for $14.1 billion by Japan's Nippon Steel. It comes as Chinese companies dominate global steel production.
"This will increase competition here in the United States with a great US ally," the US Steel CEO said. David Burritt saying.
ICYMI: Crypto Companies Spending Big on 2024 Push – Jasper Goodman reports that a trio of pro-crypto super PACs have raised $78 million as part of a major new push to influence the 2024 election. Their backers include Andreessen Horowitz, Coinbase, Ripple, and the Winklevoss twins. The goal is to help candidates who support pro-cryptocurrency policy at a time when the industry is facing intense scrutiny from federal regulators.
Tether responds to legislators — CEO of Tether Paolo Ardoino told members of House Financial Services and Senate Banking that the company has been strengthening its relationships with authorities and taking new measures to strengthen sanctions controls. Ardoino wrote to Rep. french hill and Sen. Cynthia Lummis after Republican lawmakers urged Attorney General Merrick Garland take action against the use of stablecoin in financial crimes. Tether is one of the largest cryptocurrencies in the world.
In response, Lummis said that “it is past time for Tether to agree to meet its important compliance obligations,” our Eleanor Mueller reports.
"I hope you will support these new efforts with concrete data and proactive surveillance, as required by law," Lummis said in a statement. "I will continue to work with my colleagues to conduct oversight that eliminates bad actors in the space."
Washington may become "ground zero" for the office market decline – According to Bloomberg, the US capital region has surpassed San Francisco for the highest share of office buildings with loans at risk of default, as government employees continue to work remotely. Worrying loans for Washington offices rose to 72 percent in the third quarter, up from 38 percent at the end of last year.
Homebuilders feel better — A new industry survey found that homebuilder confidence improved in December as mortgage rates continued to fall, CNN reports. The mood soured earlier this year when rates soared above 7 percent.
"The housing market appears to have surpassed peak mortgage rates for this cycle, and this should help stimulate homebuyer demand in the coming months," he said. Robert Dietzchief economist of the National Association of Home Builders.
Tennessee sues BlackRock - Tennessee AG Jonathan Skrmetti filed a lawsuit accusing the world's largest asset manager of misleading consumers while pushing environmental, social and governance principles in its investment portfolio, our Jordan Wolman reports. The lawsuit requests a jury trial and asks that the court penalize BlackRock as necessary "to disgorge net profits and ill-gotten gains."
A BlackRock spokesperson said the company will “vigorously contest” the claims.
