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"The crypto industry's top legislative priority failed on Tuesday in spectacular fashion," reports Barron's. A procedural motion to advance the bill failed by a vote of 49 to 50, with a handful of Republicans joining all Democrats to shoot it down. The motion needed 60 yes votes to pass, and with the midterm elections looming, the Senate isn't expected to pick the bill back up this year. Among other provisions, the bill would have taken most crypto trading out of the purview of securities regulators, a key goal of firms like Coinbase Global... The vote is especially bitter for the crypto industry, which has spent hundreds of millions of dollars on lobbying and campaign expenditures over the past year to even get to this point. Crypto regulation doesn't even register among the issues voters care most about, and the industry has created massive political action committees to insert itself into the Washington agenda and strike fear into the hearts of lawmakers who might oppose them... Democrats who voted against the bill said that it needed to do more to rein in [Trump's] crypto dealings to get their support. Some GOP lawmakers also voted against the motion after pressure from community bank executives. Bankers argued that the bill needed a stronger ban on high-yield crypto accounts to protect their deposits, a contention that crypto executives and the White House said was nonsense. Concerns about the bill "intensified after President Trump disclosed he and his family had earned $1.4 billion last year from his crypto ventures," reports NPR. "The massive bill — which stretches over 600 pages — would have established the first regulations for the crypto sector in U.S. history. But opponents saw it as the industry's attempt to encode into law a set of rules they saw as far too lenient on the industry, without enough safeguards." A research note from an analyst at Compass Point Research & Trading predicts the bill is now likely tabled until at least 2030, Barron's notes. But they also report what the crypto industry could do next: [C]rypto firms will be leaning heavily on Trump's regulators at the Securities and Exchange Commission, Commodity Futures Trading Commission and Treasury Department, all of whom have said they plan to move swiftly to implement industry friendly rules if a bill didn't pass. The SEC has already dropped all major enforcement actions against crypto firms and has begun to introduce rules that make it easier to raise money from crypto sales without running afoul of the law. The agency is also expected to implement rules making it easier to tokenize traditional assets like stocks. The friendly regulatory environment will in effect give the industry a little more than two years to sink roots into the traditional financial system and consumers' wallets. Even if the SEC took a harsh view of the industry in the future, as it did in President Joe Biden's administration, the agency at that point might find it difficult to put the genie back in the bottle. Read more of this story at Slashdot.

Silicon Valley giants and national security experts "are calling for action against Chinese companies engaged in model distillation," reports CNBC. But "I would do nothing," says Y Combinator CEO Garry Tan. "We could argue that there should be an American distillation regime." Distillation is the process of using the outputs of a more capable AI model to train a smaller or less capable one, sometimes illicitly... Anthropic has accused Chinese companies such as Moonshot AI, DeepSeek, and MiniMax of the practice, while OpenAI believes DeepSeek's V3 and R1 model architectures were distilled from its own GPT-4 and GPT-4o models. In the midst of this, the U.S.'s National Security Agency, Cybersecurity and Infrastructure Security Agency, and Federal Bureau of Investigation released an official cyber security advisory warning on the topic on Tuesday... But Tan believes regulators should focus less on curbing distillation and more on creating an equilibrium between open weight models and frontier models — as long as frontier models retain a price premium that allows their business model to remain feasible. "This is actually the ideal case. You want open weight models to give people freedom and access," he explained. "If I were a regulator, that's what I would go after." Tan acknowledged that this is a hard balance to strike, calling it "a tightrope." Nevertheless, he says it's a balance worth pursuing — saying it "could result in the best possible outcome." Tan later told TechCrunch he'd like to see America with more open-weight options that aren't Chinese, built by smaller U.S. open-weight AI labs using those same training techniques on products from America's frontier AI labs: Anthropic CEO Dario Amodei had previously publicly called on U.S. regulators to crack down on distillation. It's notable that the commander of Silicon Valley's prestigious and prolific startup accelerator doesn't agree. To be clear, Tan isn't advocating for American AI labs to use stolen credentials to distill. He wants them to be free to come in the front door. In fact, his argument is twofold. He feels it's an overreach for AI labs to dictate what their customers can do with the information their models share with them. He also notes that the proprietary AI labs didn't ask permission when they vacuumed up as much human knowledge as they could to train their models. They famously ingested plenty of copyrighted material without the permission of those intellectual property holders. "Controlling what users and customers do with API calls to closed weight models feels constraining, and there's a role government can play here to normalize the fact that access to intelligence that was trained on broad public access data should itself also be more a form of a public good than something locked away behind restrictive terms of service," he told TechCrunch when asked why American labs should be free to distill, too... To him, the true AI doomer scenario is for all the immense power of frontier AI to wind up in the hands of a single powerful, proprietary provider. "The nightmare scenario, the doomer scenario for AI is that there's just one company," he said. "It has the best access to capital. It has the best AI researchers. It runs away with it and suddenly there's one company that's monolithic. And that would be bad." Read more of this story at Slashdot.

Bruce66423 shares a report from The Guardian: A bipartisan pair of American politicians is telling Britain's most secretive court to stop hiding its handling of Apple's legal fight against a government demand to break into its customers' encrypted data, warning that Whitehall's taste for secrecy is 'needlessly' straining relations between the two allies. The letter (PDF), shared with the Guardian ahead of being sent to the investigatory powers tribunal (IPT) on Friday, is signed by the Democratic senator Ron Wyden of Oregon and the Republican congressman Warren Davidson of Ohio. The row dates back to January 2025, when the Home Office served Apple with a technical capability notice under the Investigatory Powers Act, which requires companies to assist law enforcement in providing evidence. The UK government demanded that Apple provide a mechanism to access encrypted iCloud backups worldwide, a call the company met by withdrawing its Advanced Data Protection encryption feature from UK users the following month. Apple's challenge to that order at the IPT was later thrown out after the Home Office withdrew the original notice and issued a narrower one targeting only British users' data. "It is wholly inappropriate for a foreign executive body to attempt to dictate the distribution of powers within the US government, nor should it be permitted to use secrecy directives under the Investigatory Powers Act to frustrate Article I powers under the US Constitution," the pair wrote. Wyden and Davidson write that Congress "is not only a co-equal branch of government, it is the First Branch," and argue that no government can be allowed to place "its demands beyond the reach of legislative inquiry." "The UK government," they write, "cannot champion legislative oversight at home while using administrative gag orders to kneecap the constitutional authority of the US Congress." Read more of this story at Slashdot.

An anonymous reader quotes a report from The Guardian: Rising global temperatures caused by the burning of fossil fuels are transforming the world's forests, wetlands and tundra to the point they are releasing emissions that could further worsen global heating by as much as 30%, a new study has found. As the world heats up, permafrost in the high latitudes is thawing, fiercer wildfires are burning in drying forests and wetlands and lakes are warming. All of these changes are themselves causing the release of planet-heating methane and carbon dioxide locked in trees and soils, therefore worsening the climate crisis, the paper states. While scientists have long known of these "feedback loops" that amplify the impact of direct pollution from burning coal, oil and gas, the emissions from natural sources are largely unaccounted for in climate projections. This additional heating is however significant, researchers found, with emissions from natural sources set to amplify global heating by 20% to 30% by the end of this century. This would add an estimated 0.2C to 0.4C to the global average temperature by this time, depending on the overall action taken by countries to combat the climate crisis. [...] This latest paper makes clear that action by countries to cut fossil fuel pollution will still lessen the amount of additional emissions that come from landscapes. Under the most optimistic climate scenario where emissions are cut quickly, natural sources will add 0.2C of warming, the paper found. Under a worse case higher emissions scenario, 0.4C will likely be added. Current policies put in place by governments are likely to see the global temperature rise to 2.6C above pre-industrial times, according to Climate Action Tracker. This will likely cause severe disruption and hardship to billions of people through sea level rise, crop losses and other consequences. "This hidden multiplier is missing from the models guiding climate policy, so those models are likely underestimating how much warming is coming -- and overestimating how much carbon we can still afford to emit," said Sam Abernethy, a scientist at Spark Climate Solutions who led the research, published in Environmental Research Letters. The disruption of the worldâ(TM)s carbon cycles is now being seen in "real time," said Rob Jackson, a Stanford University scientist and study co-author. "The results are a wake-up call, and itâ(TM)s imperative that they be included in the next generation of climate policies," he added. "Failure to do so will make meeting the worldâ(TM)s climate goals less and less likely." Read more of this story at Slashdot.

Teen reading, math, and science scores have fallen to their lowest levels since international PISA testing began in 2000, with 15-year-olds now reading at roughly the level previously expected of students a year younger. The Organization for Economic Co-operation and Development (OECD) linked weaker results to more screen time, less reading for pleasure, and digital distraction. It also found that students who regularly used AI chatbots for tasks like drafting essays and summarizing text scored about 20 points lower in science, roughly equivalent to a year of learning. Reuters reports: A 2012 reading high of 501 on PISA's index had declined to a score of 466 last year. The test is widely regarded as the world's leading gauge of educational performance and its results are closely scrutinized by governments and educators. "In reading, more screen time and less reading for pleasure have gone hand in hand with weaker results," OECD head Mathias Cormann told a press conference. "We're also seeing more hasty reading, students rushing through a text and giving a quick wrong answer." Reading scores fell more sharply in students from better-off backgrounds, the study added. Hindered by falling reading standards, average teenage science and maths skills were also at their lowest this century. Science fell from a 2009 high of 506 on the index to 486, while maths was down from 502 to 469 in the same period. East Asia was the best-performing region. Chinese cities that participated in the test, Japan, Korea, Singapore and Taiwan had the best educational systems with Britain and Estonia the only countries outside the region that made it into the top 10 in reading, mathematics and science. Read more of this story at Slashdot.