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The chairman of the U.S. SEC plans to restructure the securities regulatory tracking system CAT and explore the possibility of the SEC taking over and reforming the funding mechanism

Chairman Paul S. Atkins of the U.S. Securities and Exchange Commission (SEC) wrote to Robert Walley, Chairman of the Consolidated Audit Trail (CAT) Operating Committee, indicating that the SEC plans to undertake a comprehensive reform of the CAT system, including adjustments to its governance structure, funding sources, and operational model.Atkins stated that during his tenure, the SEC has significantly reduced the annual operating costs of CAT by issuing exemptions and approving amendments to the CAT NMS plan, and has eliminated the requirement to report personally identifiable information (PII) to the CAT system.These reforms have lowered system costs and the scope of data collection, but CAT still faces fundamental issues regarding costs, governance, and funding mechanisms. To address these issues, the SEC released a concept request for comments on April 16, 2026, to conduct a comprehensive review of CAT and other audit trail systems and data sources used in the regulation of U.S. securities markets.The SEC indicated that it has received hundreds of feedback comments, with one core consensus being that investors and market participants want the SEC to take more responsibility for the management and funding arrangements of CAT.Atkins stated that he has asked SEC staff to propose deep reforms for CAT, including: 1. Exploring new funding sources for CAT, including the use of congressional appropriations and transaction fees under Section 31 of the Securities Exchange Act; 2. Drafting rule proposals that, if approved, would repeal Rule 613 and require exchanges, FINRA, and broker-dealers to continue using the existing CAT infrastructure and reporting standards to submit CAT data directly to the SEC or its designated agency; 3. Assessing the internal resource needs of the SEC to prepare for the SEC's future assumption of governance responsibilities for CAT.The SEC expects that this reform will involve multiple stages and will need to be advanced simultaneously, with the overall transition potentially lasting until the end of 2027.

Researchers at the Chinese People's Public Security University have developed an AI algorithm to track Bitcoin money laundering, achieving an overall accuracy rate of about 90%

Researchers at the Chinese People's Public Security University have developed an AI framework capable of detecting illegal cryptocurrency transactions with an overall accuracy rate close to 90%. The study was published in the Chinese peer-reviewed journal "Journal of Intelligence," and the corresponding author, Dr. Sun Jingchao (specializing in criminal investigation and cybersecurity), noted that the research "provides an accurate, scalable, and interpretable solution for detecting illegal cryptocurrency transactions," and offers "an innovative technical path" for regulatory agencies to combat illegal cryptocurrency transactions and economic crimes.This AI framework utilizes memory modules and large language models, specifically targeting the anonymity and cross-border characteristics of cryptocurrencies to track illegal activities such as money laundering. The release of this research coincides with China's ongoing efforts to intensify the crackdown on financial crimes related to cryptocurrencies. In March of this year, the Supreme People's Procuratorate of China disclosed that by 2025, procuratorial authorities had prosecuted 3,259 individuals for money laundering crimes involving virtual currencies and underground banks.As the trading volume of cryptocurrencies rapidly increases, their anonymity and cross-border characteristics provide a channel for illegal fund flows. This police-developed AI detection tool marks a shift in regulatory technology from passive tracking to proactive intelligent identification.

Galaxy Research Director: Coldcard attack investigation陷入 AI dilemma, forced to turn to Chinese open-source models to track stolen funds

Galaxy Research Research Director Alex Thorn stated that the attack targeting Coldcard wallet address generation is still ongoing. They are currently continuing to collect victim information and adding new victim addresses and attacker addresses to the investigation database.If users are still using affected Coldcard single-signature addresses, they should immediately migrate their funds. According to current investigation results, all single-signature Coldcard addresses generated after the firmware upgrade in March 2021 may ultimately be emptied by attackers; it is just a matter of time.According to Galaxy Research's analysis, the first three confirmed rounds of attacks exhibit highly programmatic characteristics, with similar attack transaction patterns. A large amount of stolen Bitcoin remains in the attackers' addresses and has not yet been transferred.At the same time, some new opportunistic attackers are emerging, transferring and laundering funds through methods such as stripping the funding chain, cross-chain services (like ThorChain), and overseas betting platforms.Additionally, Alex Thorn mentioned the limitations of AI tools in security investigations. Some large language models in the United States have restricted researchers' ability to track stolen funds, and the team has even had to turn to Chinese open-source AI models to assist in protecting user assets and conducting on-chain tracking.He finds this phenomenon "incredible" and plans to promote discussions on related issues at the government and industry levels. Alex Thorn concluded by stating that a large amount of stolen funds remains stagnant, and the team is continuously tracking relevant addresses, having shared information with relevant U.S. agencies and industry partners. He calls on the Bitcoin community to learn from this incident, strengthen self-custody security education, and raise awareness of wallet complexity.
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