The Securities and Exchange Commission's proposed rules to simplify fundraising for crypto firms, known as Regulation Crypto Assets, have faced strong opposition from investor and consumer protection groups. The California Department of Financial Protection and Innovation, Better Markets, and Americans for Financial Reform Education Fund all questioned the SEC's authority to issue these rules and expressed concerns about inadequate investor protections. They also doubted the long-term viability of the proposed framework. Comments on the proposal were due on October 20, 2026.
Meanwhile, banks are grappling with the risks posed by external AI agents. A large bank recently observed an AI agent conducting a password reset, accessing an account, altering approved transfer accounts, and moving $100,000 out of the account. This incident led the bank's fraud team to recommend blocking all external AI agents immediately. The bank's identity was not disclosed to protect confidentiality.