Here’s what happened in crypto today

Today in crypto, US Attorney General nominee Todd Blanche faced Senate scrutiny over his crypto enforcement record and Changpeng Zhao’s pardon, the EU’s anti-money laundering watchdog warned the end of MiCA’s transition period could strain compliance across the crypto sector and Coinbase said AI now helps write nearly all of its code.

US AG nominee faces Senate scrutiny over crypto enforcement and CZ pardon

President Donald Trump’s nominee for US Attorney General, Todd Blanche, faced sharp questioning from Senate Democrats and Republicans over his role in reshaping the Justice Department’s crypto enforcement strategy and the pardon of former Binance CEO Changpeng Zhao.

During a Senate Judiciary Committee confirmation hearing, Senator Dick Durbin accused Blanche of dismantling the Justice Department’s crypto enforcement unit and ending active investigations into the digital asset sector while serving as deputy attorney general. Durbin argued the policy shift benefited Trump’s crypto interests, including World Liberty Financial, and criticized Zhao’s presidential pardon following his 2023 guilty plea over Anti-Money Laundering violations.

Blanche rejected no allegations directly but said he would review the pardon process if confirmed. Republican Senator Thom Tillis also raised concerns about Zhao’s pardon.

Todd Blanche at his confirmation hearing before the Senate Judiciary Committee. Source: Associated Press

Crypto firms face AML risks during post-MiCA migration, says AMLA chair

Mass user migration following the end of the MiCA transitional period could strain compliance at virtual asset service providers (VASPs) in the European Union, according to Bruna Szego, chair of the Authority for Anti-Money Laundering and Countering the Financing of Terrorism (AMLA). 

“Because we know customers will rush to withdraw, this will put additional pressure on these VASPs,” Szego said during a Wednesday briefing with the European Parliament’s Committee on Economic and Monetary Affairs.

Szego said firms winding down their EU operations could come under pressure as customers rush to withdraw, while licensed crypto companies could face onboarding challenges as they absorb new users. She urged service providers to maintain efficient compliance procedures throughout the transition.

MiCA’s 18-month transitional period ended on July 1, requiring crypto asset service providers (CASPs) to hold a license to continue serving EU customers. The European Securities and Markets Authority said crypto service providers that remain unauthorized by the deadline must take “immediate” steps to wind down their EU activities.

Over 95% of Coinbase’s code is now written with help of AI

Artificial intelligence now helps write more than 95% of Coinbase’s code, offering new insight into the crypto exchange’s AI strategy following its decision to cut 14% of its workforce earlier this year. 

Coinbase cut 700 staff in May. In an email to employees, Coinbase CEO Brian Armstrong said AI has “dramatically” changed the pace of work and there was a need to “return to the speed and focus of our startup founding, with AI at our core.” 

Rob Witoff talks about Coinbase’s adoption of AI. Source: Cointelegraph

“Effectively, 100% of our employees are using AI on a daily basis here,” Coinbase’s head of platform, Rob Witoff, told Cointelegraph. “And close to 100% of our code, probably somewhere between 95% and 100%, is written by or with LLMs today.”

The figure is more than double Coinbase’s February estimate, when the company said 40% of its code was written with AI, reflecting the accelerating pace of AI adoption across tech and crypto companies.