Regulation
EU Commission Denies Pre-Warning On Donald Trump And Elon Musk Interview

The EU Commission has noted that a letter that was sent from Thierry Breton, the EU Internal Market Commissioner to Elon Musk, owner of the social media platform X was not green-lit by Ursula von der Leyen the commission’s president.
Subsequently, the letter threatened Musk with legal action under the Digital Services Act (DSA) if content on X endangered EU citizens. It was published on the platform shortly before Musk’s interview with the US presidential candidate Donald Trump.
EU Commission Denies Pre-Warning on Trump Musk Interview
According to a Financial Times report, the EU Commission has denied giving any prior approval to Thierry Breton’s letter to Elon Musk. The letter, shared on X, addressed Musk to the platform’s adherence to the Digital Services Act, including the removal of content with adverse effects on EU citizens.
The Commission also said that neither the timing of the letter, nor its content was cleared with or by the president of the Commission, Ursula von der Leyen or other commissioners.
BREAKING: EU accused its internal market commissioner of going rogue by sending a letter to Elon Musk threatening punishment hours before Elon interviewed US presidential candidate Donald Trump on X.
— unusual_whales (@unusual_whales) August 13, 2024
One of the EU officials who wished to remain anonymous stated that Breton has been known to work autonomously at times, sometimes without the input of other top officials in the Commission. The timing of the letter, which came following Musk’s meeting with Donald Trump, was questioned within the Commission. The letter focused on Musk’s obligation to censor negative content on X because the platform has many users, and one-third of them are in the EU.
Investigation into X’s Compliance with DSA
As of now, the EU Commission is probing X for possible violation of the Digital Services Act, which was enacted in 2022 in response to increasing dependence on social media. This case is linked to the handling of the illegal content and the spreading of the disinformation which are the concerns that are emerging in the EU. The Commission has noted that X’s approach to addressing the issue of problematic content will be crucial in the further investigation.
In his letter, Breton provided specific examples of how content found on X was related to some recent protests and expressed concerns regarding the role of the platform in ensuring that freedom of speech does not lead to public threats. The letter also brought to mind that Musk has certain legal obligations under the DSA, with regards to the measures which need to be taken proportionately to address the issue of amplification of harmful content.
Nonetheless, if the platform is considered to have violated the Digital Services Act, it may be subject to severe sanctions, including fines of up to 6% of the company’s global turnover. Initial revelations of the probe have also accused X of not being clear on its marketing strategies and of deceiving its consumers through the paid subscription-based blue tick verification process.
Elon Musk’s X Probed in Austria and Pushes Antitrust Case
However, the platform has also faced other legal challenges in Europe apart from the scrutiny of the EU commission. Recently, the Austrian privacy organisation NOYB complained against X to the Irish DPAs claiming that the platform uses personal data for AI training without valid consent from the users. The complaint filed by the privacy activist Max Schrems has led to X being investigated for possible breaches of data protection laws in Austria.
Concurrently, the platform is currently involved in an antitrust lawsuit against several big names and an advertising industry body, accusing them of conspiring to cause harm to the platform.
As reported by Coingape, X’s CEO Linda Yaccarino stated that the lawsuit is against companies such as CVS Health, Mars, and Unilever, all of which are accused of colluding to damage Elon Musk platform and other conservative media organisations.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
US SEC Drops Charges Against Hawk Tuah Girl Hailey Welch

Hawk Tuah girl Hailey Welch, known for her association with the controversial $HAWK token, has been cleared of any wrongdoing after a lengthy investigation by the U.S. Securities and Exchange Commission (SEC). The SEC has decided not to press charges against Welch in connection with the rapid rise and subsequent collapse of the meme-based cryptocurrency.
US SEC Investigation Into Hawk Tuah Girl Concludes Without Charges
The SEC had launched an investigation into the $HAWK token after its dramatic price drop. The token, which was linked to Welch’s viral persona, initially saw a market cap surge to $490 million before crashing by over 90%. Investors who were impacted by the crash filed a lawsuit against those behind the project, alleging that the coin had been promoted and sold without proper registration.
Hawk Tuah girl Hailey Welch, who cooperated fully with the investigation, expressed relief after the SEC’s decision. “For the past few months, I’ve been cooperating with all the authorities and attorneys, and finally, that work is complete,” Welch told TMZ.
Her attorney, James Sallah, confirmed that the SEC had closed the case without any findings against her, adding that there would be no monetary sanctions or restrictions on Welch’s future involvement in cryptocurrency or securities.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
Sonic Labs To Abandon Plans For Algorithmic USD Stablecoin, Here’s Why

Barely a week after hinting at launching an algorithmic USD stablecoin, Sonic Labs is shuttering its plans. Sonic Labs co-founder Andre Cronje revealed that incoming stablecoin regulation in the US contributes to the change of stance.
Sonic Labs Makes U-Turn Over Algorithmic USD Stablecoin
In mid-March, Sonic Labs disclosed plans for a yield-generating algorithmic stablecoin for its blockchain. However, new developments in the US regulatory landscape are forcing the company to ditch its algorithmic stablecoin ambitions.
Sonic Labs co-founder Andre Cronje confirmed the change in direction via an X post following the release of the full draft of the STABLE Act by Congress for clearer oversight. According to the text, lawmakers are pushing for a two-year moratorium on algorithmic stablecoin, souring Sonic Labs plans.
Unlike mainstream stablecoins backed by fiat or other commodities, algorithmic stablecoins rely on smart contracts to maintain their peg. The 2022 implosion of Terra’s ecosystem following the de-pegging of its TerraUSD (UST) algorithmic stablecoin stunned regulators.
“We will no longer be releasing a USD-based algorithmic stablecoin,” said Cronje.
In a light-hearted note, community members teased potential strategies for Sonic Labs to sidestep incoming stablecoin regulation. Apart from the loophole of launching the algorithmic stablecoin before the regulation goes live, Cronje teased an algorithmic dirham that will be denominated in USD.
Industry Players Are Bracing For New Stablecoin Regulations
Stablecoin issuers are steeling themselves for incoming stablecoin regulations in the US. While the GENIUS Act and STABLE Act continue to inch forward, there are common denominators in both bills.
For starters, there is the requirement for equivalent reserves at a 1:1 ratio with both bills steering clear of algorithmic stablecoins. The White House is favoring the GENIUS Act over the STABLE Act as lobbyists rally to stifle the possibility of a Conference Committee.
Authorities are targeting stablecoin regulation to reach Trump in two months as issuers jostle for position. Tether, Circle, and Ripple are staking their claims to lead the US government’s ambitions to rely on stablecoins to maintain the dollar’s dominance.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Regulation
FDIC Revises Crypto Guidelines Allowing Banks To Enter Digital Assets

The Federal Deposit Insurance Corporation (FDIC) has updated its guidelines, enabling banks to engage in cryptocurrency-related activities without seeking prior approval. This new policy shift signals a change in the FDIC’s approach to the growing role of digital assets in the banking sector.
New FDIC Guidelines on Crypto-Related Activities
The FDIC has issued a new Financial Institution Letter (FIL-7-2025), which provides updated guidance for banks looking to engage in cryptocurrency activities. The new guidance rescinds the previous policy set out in FIL-16-2022, which required banks to notify the FDIC before engaging in such activities.
Under the new rules, banks can now participate in permissible crypto-related activities without waiting for FDIC approval, as long as they manage the risks appropriately.
This change is seen as a shift in the FDIC’s stance, following the agency’s earlier stance that required prior approval for crypto engagements. FDIC Acting Chairman Travis Hill expressed that this new approach aims to establish a more consistent framework for banks to explore and adopt emerging technologies like crypto-assets and blockchain.
“With today’s action, the FDIC is turning the page on the flawed approach of the past three years,” said Hill in a statement.
This Is A Developing News, Please Check Back For More
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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