Today in crypto, Wintermute has asked the SEC to clarify that network tokens like Bitcoin and Ether are essential to blockchain functionality and should not be classified as securities. Coinbase CEO Brian Armstrong says he wants AI-generate…
Today in crypto, Wintermute has asked the SEC to clarify that network tokens like Bitcoin and Ether are essential to blockchain functionality and should not be classified as securities. Coinbase CEO Brian Armstrong says he wants AI-generated code to make up 50% of his platform’s code by next month. Meanwhile, the CFTC granted Polymarket relief on event contract reporting.
Wintermute urges SEC to exclude network tokens from securities rules
Trading firm and market maker Wintermute has urged the US Securities and Exchange Commission (SEC) to clarify that network tokens should not fall under securities regulations. The company made its case in a formal response to the agency’s request for comment.
Wintermute argued that regulatory certainty is vital to prevent the misapplication of securities laws and to support the continued development of crypto markets. Without such clarity, the firm warned, innovation and adoption in the sector could face unnecessary hurdles.
The company emphasized that network tokens — such as Bitcoin (BTC) and Ether (ETH) — serve as essential technical components for blockchain operations. Unlike financial products, these tokens are inherently tied to the functioning of decentralized networks and should not be classified as securities.
Coinbase CEO wants AI to write 50% of his platform’s code by October
Over 40% of Coinbase’s code is written by artificial intelligence, according to CEO Brian Armstrong, who hopes the figure will rise to 50% by next month.
“Obviously it needs to be reviewed and understood, and not all areas of the business can use AI-generated code. But we should be using it responsibly as much as we possibly can,” Armstrong posted to X on Wednesday.
The percentage of AI-generated lines of code at Coinbase has more than doubled since April, according to the chart he shared.
His comments come about a month after Coinbase said one of its biggest focuses is to transform its workforce into “AI-Natives” — signaling it doesn’t plan to replace a significant share of its 4,200 employees with AI anytime soon.
US regulator grants Polymarket relief on event contract reporting rules
The US Commodity Futures Trading Commission (CFTC) said it will not pursue enforcement against two entities tied to prediction platform Polymarket.
In a Wednesday notice, the CFTC said it had issued a no-action letter “regarding swap data reporting and recordkeeping regulations for event contracts” with QCX LLC and QC Clearing LLC.
“The divisions will not recommend the CFTC initiate an enforcement action against either entity or their participants for failure to comply with certain swap-related recordkeeping requirements and for failure to report to swap data repositories data associated with binary option transactions and variable payout contract transactions […],” said the regulator.
The action essentially allows Polymarket to offer event contracts without reporting the data required under US financial regulations, providing temporary relief from enforcement while not exempting the companies from regulatory compliance.
In a Wednesday X post, Polymarket CEO Shayne Coplan said the CFTC’s action had given the company “the green light to go live in the USA.”
“This process has been accomplished in record timing,” said Coplan. “Stay tuned.”
