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Circle submitted a comment letter on the proposed cryptocurrency asset regulatory regulations by the SEC

Circle submitted comments to the U.S. Securities and Exchange Commission regarding its proposed regulatory framework for cryptocurrency assets. Circle supports the proposal's goal of fostering innovation under clear rules while maintaining the advantages of U.S. capital markets, including transparency, investor protection, market integrity, liquidity, and efficiency.Circle also suggested that the cryptocurrency asset regulatory framework should align with the GENIUS Act. Given that payment stablecoins are increasingly becoming important considerations and settlement assets for on-chain capital formation, Circle requests that the U.S. Securities and Exchange Commission (SEC) clarify how payment stablecoins that comply with the provisions of the GENIUS Act can be used for these purposes.The letter further requests that the Commission clarify that eligible payment stablecoins constitute "cash" under proposed Rule 302(b), should receive appropriate U.S. dollar valuation treatment, and comply with the corresponding accounting and customer reserve treatment conditions.Circle also recommends that, provided objective safeguards are in place, the current 2% broker discount for payment stablecoins that comply with GENIUS be reduced to zero. Finally, Circle requests that the SEC clarify that technical services provided after the network goes live (including maintaining a known set of validating nodes) do not constitute necessary management work. Establishing safe harbor rules for the technical roadmap would allow issuers to continue maintaining and improving the operational network without inadvertently restarting the related analysis.

first_img The House Oversight Committee investigates the proposal from the Delaware AI entity operating company

According to Decrypt, James Comer, the Chairman of the House Oversight Committee (Republican from Kentucky), has launched an investigation into a proposed company entity in Delaware that would be operated daily by AI entities.In a letter to Delaware Governor Matt Meyer, Comer stated that the proposed "Artificial Intelligence Company" (AIC) could exempt AI companies and their investors from liability for damages caused by AI entities, and he requested the governor to submit relevant documents and communications, including "internal AI chat logs," by November 9.The proposal was announced in July in a joint article in Fortune by Delaware Secretary of State Charuni Patibanda-Sanchez and Norm Ai CEO John Nay, positioning it as a public-private partnership led by Norm Ai.By design, the AIC could sue and be sued, hold property, and assume obligations under the direction of AI entities; its sole member must maintain sufficient capital and is not liable for the company's debts except in cases of incomplete capitalization, fraud, or willful misconduct. The AIC can only operate within a regulatory sandbox for 30 months, must disclose its identity to counterparties, and is prohibited from conducting banking activities.Comer also questioned the role of private sector participants in the proposal, stating that the Delaware AI Commission's report due in December 2025 did not mention a security risk assessment or consult independent experts, and the Secretary of State's office refused to clarify its relationship with an AI company involved in the project.He stated that this information could inform federal legislation, including proposals to limit state-level AI regulatory initiatives. The Secretary of State's office denied that the plan is a liability waiver arrangement, and Governor Meyer defended it, with state legislators expected to review the legislative proposal in January.

XRP Ledger developers test a zero-balance account creation plan, which is proposed to be funded by the sponsor to cover the 1 XRP reserve requirement

According to CoinDesk, XRP Ledger developers are testing a new feature that aims to allow the creation of blockchain accounts with an initial balance of zero, with existing accounts bearing the reserve required for new accounts, thereby lowering the financial threshold for payment applications and automated software to create wallets on a large scale. This proposal was submitted on October 15 in the form of a SponsoredAccountCreate transaction proposal.According to current XRP Ledger rules, each account must reserve at least 1 XRP as a reserve, meaning that creating 100,000 independent accounts would require locking up 100,000 XRP. The new proposal intends for sponsored accounts to bear this reserve requirement, and a broader fee sponsorship mechanism in the future could also allow applications to pay transaction fees on behalf of users, but the overall reserve requirement for the network will not be eliminated. This feature is expected to lower the usage threshold for scenarios such as embedded wallets, RLUSD stablecoin payments, and AI agent automated payments.However, the related code is still under review, and the sponsorship mechanism it relies on has not yet gone live on the mainnet. As of October 19, the mechanism has only received 11 votes out of the 35 required validator votes, still falling short of the 29 votes needed for approval.
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