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US Congress passes landmark crypto legislation with bipartisan support

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The US House of Representatives has overwhelmingly passed the first major legal reform for cryptocurrency regulations.

A bill that will introduce new rules for stablecoins has been sent to the president’s desk, and crypto companies have achieved a historic lobbying victory.

House members passed the GENIUS Act, which had already passed the Senate, with a vote of 308 to 122. More than 100 Democrats, including Minority Leader Hakeem Jeffries, joined Republicans to approve a measure that will help legitimize digital assets as mainstream financial products.

The law will regulate stablecoins and tokens pegged to assets like the US dollar and pave the way for banks to launch their own digital assets.

The House of Representatives also passed a second, much more comprehensive crypto market structure bill with a vote of 294 to 134, which will now go to the Senate.

78 Democrats voted with Republicans to advance the bill, known as the CLARITY Act. This was a victory showing bipartisan support that exceeded expectations and surpassed the number of votes a similar bill received in the House last year.

This law also tasks the Securities and Exchange Commission with determining whether an asset is considered a security.

Banks are preparing for digital assets

US banks are openly expressing their interest in entering the digital asset space.

JPMorgan CEO Jamie Dimon said this week that his bank “will be involved in both JPMorgan deposit coins and stablecoins.”

Citi CEO Jane Fraser stated on Tuesday that the Wall Street bank is “enthusiastic” about the GENIUS Act.

“We really welcome the administration’s willingness to allow banks to enter the digital asset space more easily. Until now, it has been difficult for us to compete on a level playing field,” Fraser said.

Bank of America CEO Brian Moynihan also mentioned the bank’s desire to offer stablecoin payments but noted that uncertainty remains about how much demand there will be for digital tokens.

Republican-Democrat collaboration on digital assets

Jeffries voted against the market structure proposal, which would create a larger, industry-friendly regulatory framework for digital assets, but the proposal received support from many other prominent Democrats, including former House Speaker Nancy Pelosi and Democratic Caucus Chair Pete Aguilar.

The strong Democratic support for the industry-backed crypto bills came despite Representative Maxine Waters of California, the top Democrat on the House Financial Services Committee, saying the bill posed a risk to financial stability and would allow President Donald Trump to engage in corruption.

Waters and other Democrats pointed to the Trump family’s business connections in the crypto sector, demanding that presidential ethics provisions be added to the bills.

Trump and his sons have stakes in various crypto ventures, including a company they founded last year that issues stablecoins and could benefit from the GENIUS bill, which is now awaiting the president’s signature.

However, a growing faction of the party has joined Republicans in supporting the digital asset industry’s Washington agenda. This is a sign of the rise of crypto companies as a political force.

Companies in the crypto sector have spent hundreds of millions of dollars to gain influence, and the massive funds of super PACs are preparing to target members of Congress who stand in the way of the industry’s goals.

The House also passed a third, more partisan measure that would ban a central bank digital currency.

The vote was a major victory for Republicans who have been pushing for industry-friendly crypto rules for years. Financial Services Committee Chairman French Hill, a leader of these efforts, also voted in favor.

Retirement system doors opening wide for capital

In addition, the Trump administration is preparing to open the $9 trillion US retirement market to cryptocurrency investments, gold, and private equity in a move that will lead to a radical change in how Americans’ savings are managed.

According to three people familiar with the president’s plans who spoke to the Financial Times (FT), Trump is expected to sign a presidential executive order this week that will open 401k plans to alternative investments beyond traditional stocks and bonds.

These investments will cover a wide range of asset classes, from digital assets and metals to funds focused on corporate takeovers, private loans, and infrastructure deals.

These individuals said the executive order will instruct regulatory agencies in Washington to investigate the remaining barriers to including such alternative investments in professionally managed funds used by 401k savers.

The White House told the FT, “President Trump is determined to restore the prosperity of ordinary Americans and protect their economic future. But no decision should be considered official unless it comes from President Trump himself.”

In the US, 401k plans are one of the most popular ways for working Americans to save for retirement, allowing them to invest a portion of their salary in publicly traded securities on a tax-deferred basis.

However, almost all of these investments are in publicly traded stock and bond mutual funds.

The executive order will accelerate efforts to mainstream crypto investments, following the Trump administration’s lifting of significant sanctions against major digital asset trading groups.

Private equity groups lobby for access to retirement savings

The Trump administration had already begun to relax rules regarding the use of cryptocurrency in retirement accounts.

In May, the Department of Labor rescinded a Biden-era practice that discouraged 401k plan managers from including cryptocurrency investment options.

Beyond cryptocurrencies, Trump’s executive order will help the world’s largest private equity groups, such as Blackstone, Apollo, and BlackRock, which have tied much of their future growth to investing money on behalf of ordinary retirement savers.

The regulation will ask the Department of Labor to consider creating a safe harbor for retirement plan managers. This will minimize the legal risks for managers who offer savers private investments that charge higher fees and are not as easily valued or traded as public stocks.

Apollo, BlackRock, Blackstone: Partnerships for retirement funds begin

Private equity groups like Blackstone and Apollo anticipate that gaining access to 401k retirement plans could attract hundreds of billions of dollars in new industry assets and have begun forming partnerships with major asset managers.

Blackstone has signed a partnership agreement with Vanguard, while Apollo and Partners Group are among the companies that will offer investments to Empower, a major 401k plan sponsor. BlackRock has started working with Great Gray Trust, a third-party administrator of retirement savings plans.

The opening of the 401k market to private equity comes at a time when the industry has been struggling in recent years to raise new funds from institutional investors such as pension funds and endowments.

However, the effort to steer savings plans toward less liquid private assets also brings risks, such as less transparency in fund asset valuation, as well as higher fees and overall leverage.

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Musk appointed co-director of Pentagon future warfare initiative

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The world’s richest man, Elon Musk, has assumed the co-directorship of a Pentagon initiative focused on the future of warfare, known as “Project Meridian”.

Musk’s new role was announced by US Secretary of Defence Pete Hegseth.

Musk, who has long expressed his conviction that wars will ultimately be fought with autonomous unmanned aerial vehicles, will advise the project as co-director alongside Palmer Luckey, founder of defence start-up Anduril, and former Speaker of the House of Representatives Newt Gingrich.

In a memorandum issued at the Pentagon, Hegseth stated that the group would “examine the battlefields of the future” and “determine which weapons and technologies warfighters must employ to achieve dominance in these environments.”

During his “State of the Force” address at Marine Corps Base Quantico, Hegseth said:

“The best predictors of future conflict do not reside exclusively within the Pentagon. Obvious biases and risks arise when we task ourselves with both framing the questions and answering them.”

Hegseth stated that this initiative would commence immediately and that, following his address, he would convene with Musk, Luckey, and Gingrich at a secure location.

Project Meridian will have 120 days to “ruthlessly map the trajectory of wars, domains, and technologies”, a process that will culminate in the public disclosure of its findings alongside a classified annex.

Hegseth outlined an expansive mandate extending “from beneath the surface of the Earth to beyond the Moon.”

Rather than formulating new military strategies or policies, the panel will seek to identify “the domains we must seize and the capabilities we must master”, focusing on the effort to “discover, develop, and field” the weapons and systems that next-generation American troops may require.

The group is expected to submit a report containing recommendations to him by the end of January.

In 2024, Musk remarked: “Future wars will be entirely about drones and hypersonic missiles.” This was merely one of several similar statements he has made in recent years.

For Musk, whose oversight role at the Department of Government Efficiency (DOGE) ended in turmoil and escalated into a dispute with President Donald Trump over Trump’s spending bill, this appointment marks his formal return to government in an official capacity.

Musk and Trump ultimately reconciled, and Musk attended a meeting on artificial intelligence safety at the White House this week alongside other technology leaders.

Meridian forms part of a broader push announced by Hegseth to restructure the military around autonomous warfare and rapidly advancing technologies.

Hegseth announced the establishment of the Autonomous Warfare Command (AUTOWARCOM), a new four-star combatant command endowed with what he termed “service-like authorities” to scale autonomous and robotic capabilities across the joint force.

The Department of War will also begin phasing in new occupational frameworks across all military branches to establish specialised career tracks for what Hegseth described as “the next generation of autonomous warfighters.”

“We should have conceived an Autonomous Warfare Command a decade ago,” Hegseth said, explaining that Meridian aims to gaze far enough ahead to enable the military to anticipate the next technological shift rather than lag behind.

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Pentagon breach exposes personal records of three million people

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A cyberattack targeting the US Department of War’s personnel database has resulted in the leak of personal information belonging to approximately 3 million people.

Speaking to ABC News, a Pentagon official stated that the system accessed by unauthorised individuals contained the records of 2,760,000 living persons and 294,000 deceased individuals.

The Military Times portal, which first broke the news, had reported the number of affected individuals as approximately 4 million based on two sources. The Pentagon official subsequently conveyed different figures to ABC News.

The leak encompasses Social Security numbers and duty information belonging to military personnel and civilian employees. According to an official notification examined by Military Times, the compromised records may also include names, dates of birth, contact information, sex, race, and military occupational specialties.

The unauthorised access to the information system of the Defense Manpower Data Center (DMDC) lasted for approximately nine months, between October 2025 and 16 July 2026.

ABC News reported that the access in question was obtained by a small number of third-party users. The vulnerability was closed after it was identified.

The DMDC is considered one of the Pentagon’s primary personnel records centres. More than 60 million records belonging to active-duty personnel, reservists, civilian staff, contractors, retirees, veterans, and military family members are stored at the centre.

The Pentagon has not detected any evidence that the leaked data has been misused. Military Times reported that affected individuals were offered identity restoration and credit history monitoring services.

A similar data breach previously occurred on the Federal Bureau of Investigation’s (FBI) recruitment website, FBIJobs.gov. According to information obtained by ABC News from internal communications and sources, the FBI is considering the possibility that data belonging to its entire staff may have been stolen.

The New York Times (NYT) examined a portion of the stolen FBI records. Home addresses, telephone numbers, official email addresses, Social Security numbers, dates of birth, hiring dates, and emergency contact details for relatives were identified within these documents.

The database also contained unit designations, duty roles, and information regarding the supervisors of personnel. Some records revealed assignments within counterintelligence and counternarcotics units, as well as departments examining threats originating from Russia, China, and Iran.

Ciaran Martin, the former head of the UK National Cyber Security Centre, noted that this type of breach could directly affect the FBI’s operational capabilities.

The hacker group known as ShinyHunters had announced that it had seized medical data and security clearance records alongside files belonging to tens of thousands of active and former FBI employees.

Experts evaluating the matter for the NYT warned that this information could be used to track agents, threaten their families, or compile dossiers by foreign intelligence services.

The ShinyHunters group initially threatened to release the data unless the bureau withdrew an advisory it had published concerning the group’s attack methods.

The group later asserted that it had never intended to leak the information and characterised its action as an advertising campaign.

In a report published in May, Reuters noted that the personal data of US military personnel had been used in surveillance and attack preparations.

According to the agency, Washington’s adversaries gained the ability to pinpoint areas where troops were concentrated by exploiting commercially available location data. US lawmakers at the time criticised the Pentagon for failing to adequately protect the personal data of military personnel.

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Canada diversifies oil and gas exports away from US

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US President Donald Trump’s trade policy and the Washington administration’s push to increase Venezuelan oil imports are prompting Canada to diversify its energy exports.

According to a report by The Wall Street Journal, recent developments are accelerating Canada’s development of new oil and natural gas projects.

Steps taken by the Ottawa administration, which aspires to become an energy superpower, are seen as potentially strengthening the country’s position in global markets.

In Canada, the world’s fourth-largest oil producer and fifth-largest natural gas producer, the energy sector accounts for approximately one-fifth of total exports.

Almost all of the country’s natural gas exports and approximately 90% of its oil exports go to the US.

The newspaper writes that the trade war with Washington and the atmosphere of confrontation entered into with Iran have heightened Canada’s desire to turn to alternative markets outside the US.

Officials plan to increase shipments of oil and liquefied natural gas (LNG) to European and Asian markets.

Accelerating infrastructure investments in line with this target, Canada is also shortening approval processes. The government is prioritising the construction of an oil pipeline extending specifically to the west coast.

According to the newspaper’s estimate, if major pipeline projects are implemented, Canada’s daily oil transport capacity could rise to 6.8 million barrels by 2034.

Routes heading to the west coast will make up approximately 30% of this capacity.

The Canadian administration is simultaneously advancing LNG export projects. According to the report, these investments could allow approximately 55% of Canadian natural gas exports to be directed to markets outside the US by the early or mid-2030s.

While the government expands tax incentives for the oil and natural gas sector, the province of Alberta also plans to overhaul its royalty system.

However, the newspaper notes that implementing the new projects requires heavy investment, and the process depends on the final decisions taken by producers as well as the completion of regulatory approval processes.

The expansion of pipeline and LNG infrastructure could gradually reduce Canada’s dependence on the US market while raising its share in the global energy market.

The Canadian Prime Minister’s demand to reduce reliance on the US market had also come to the fore in July.

According to Carney’s statement, the province of Alberta submitted a plan for a pipeline spanning more than 1,000 kilometres to the west coast of British Columbia.

Targeted for completion by September 2027, the line will reach the Pacific coast by following an existing corridor through the mountainous terrain.

This shift in energy comes at a time of strained relations with the US. Donald Trump said that if Canada obtains associate member status in the European Union, he could halt trade with Europe in certain sectors and impose high tariffs.

As reported by the Associated Press, Trump characterised such a rapprochement as a “potentially hostile act”.

European Commission President Ursula von der Leyen had proposed opening the path for Canada to become the EU’s first associate member. The terms of this associate membership status, which is not defined in EU treaties, are not yet clear and require the approval of member states to enter into force.

Canada, which does not seek full membership, aims for maximum rapprochement with the EU.

Following Trump’s return to the White House, relations between Washington and Ottawa deteriorated. The Trump administration, which repeatedly called on Canada to become the “51st state” of the US, introduced additional tariffs.

In July, the US began imposing 50% tariffs on certain Canadian-origin goods.

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