US Securities and Exchange Commission (SEC) Paul Atkins appeared before lawmakers in one of his first hearings since becoming chair of the financial regulator, addressing questions about his plans for the cryptocurrency industry.

In a May 20 hearing discussing oversight of the SEC, Atkins reiterated his pledge to make regulating digital assets a “key priority” while chair. In response to questions from North Carolina Representative Chuck Edwards, the SEC chair did not directly answer how much of the regulator’s funds were used to support the crypto task force headed by Commissioner Hester Peirce, and said its findings were “still under development.”

“We should be having something here in the next few months with proposed steps forward,” said Atkins in response to the task force’s first report. 

The SEC chair’s appearance at the oversight hearing was one of his first since being sworn into office in April. Nominated by Donald Trump, Atkins, also a former commissioner, was seen by many lawmakers and those in the digital asset industry as someone who could radically change the SEC’s approach to crypto. 

This is a developing story, and further information will be added as it becomes available.

Artificial intelligence platform Validation Cloud has launched a new large language model on the Hedera network, potentially giving decentralized finance users the ability to reach blockchain data in a more accessible way.

The Mavrik-1 AI engine has been deployed on Hedera, with several other planned integrations expected during a public rollout later this year, Validation Cloud’s team told Cointelegraph. 

The AI engine is designed to allow users to interact with DeFi protocols and access blockchain data through natural language queries without needing technical expertise or knowledge. 

Mavrik-1 uses live onchain data trained for DeFi, stablecoins and other blockchain applications. 

Hedera DeFi metrics, including total value locked (TVL), decentralized exchange volume and stablecoin activity. Source: DefiLlama

“Despite DeFi accounting for over 50% of all onchain activity, accessing and interpreting that data remains a major hurdle for most users and institutions,” Validation Cloud told Cointelegraph, asserting that existing blockchain data tools like Dune, Flipside and Nansen are harder to grasp for users who aren’t well versed in the industry. 

Since at least 2023, blockchain companies have developed AI chatbots to assist developers and users. However, as Cointelegraph reported at the time, widespread adoption faced major hurdles, particularly for AI-powered smart contracts, which were hindered by high and unpredictable gas fees.

Related: AI-generated content needs blockchain before trust in digital media collapses

AI’s growing utility in Web3

With AI set to be a $15 trillion industry by 2030, more of its activity will migrate to the decentralized web as blockchains give users greater control over computing resources and databases, according to LeewayHertz, an AI development company.

This was further corroborated by Ernst & Young, which reported in 2024 that “AI and Web3 could address shortcomings in each other.”

“Web3 could help AI tackle its trust issues, and AI could help overcome Web3’s adoption challenges,” E&Y said.

Use cases for AI have popped up all over the blockchain industry, with Cointelegraph recently reporting that a Circle co-founder had launched an “AI native bank” with $18 million in fresh startup capital.  

The share of venture capital dollars pouring into AI has surged since early 2023. Source: PitchBook

Venture capital poured $73 billion into AI startups during the first quarter, according to Pitchbook data. More than half of the total was a single funding round into ChatGPT developer OpenAI, which raised $40 billion in March.

Although crypto-focused venture capitalists are excited about AI applications, some have expressed reservations about investing until the technology progresses further.

Magazine: Crypto AI tokens surge 34%, why ChatGPT is such a kiss-ass: AI Eye

Argentine President Javier Milei has dissolved a task force established to investigate the fallout from LIBRA, the scandalous cryptocurrency project the head of state promoted on his social media channel before it crashed to zero. 

The Investigative Task Force (ITU) was dissolved via a May 19 decree signed by Milei and Justice Minister Mariano Cúneo Libarona, government documents revealed. 

“The Research Task Unit is dissolved” after completing its mandate, the translated version of the decree read.

The task force is being dissolved despite pressure from opposition groups, which are seeking to activate an investigative commission as soon as May 20, local media outlet Clarin reported. 

A screenshot of Milei’s tweet endorsing LIBRA. Source: TRM Labs

Government officials established the UTI on Feb. 19, mere days after President Milei promoted LIBRA on his official X account.

His endorsement briefly sent LIBRA soaring from practically worthless to $5 a token and a nearly $5 billion market capitalization, before quickly crashing to zero in what appeared to be a classic pump-and-dump scheme. 

The fallout from LIBRA sparked allegations of insider trading and manipulation, with President Milei caught in the crosshairs.

In addition to facing an investigation, Milei’s credibility suffered at home, with nearly 58% of Argentinians saying they no longer trust the president for his role in the scandal.

This is a developing story, and further information will be added as it becomes available.